IQSTEL Inc. (OTCQX: IQST), a leading multinational telecom and technology company, announced today that it has made the strategic decision to uplist to the NASDAQ stock exchange. As part of this process, the company has executed a reverse stock split at a ratio of 80:1 to meet the minimum share price required for listing. This marks a significant milestone in IQSTEL’s journey to expand its visibility, credibility, and access to broader capital markets. With $283 million in revenue reported for 2024 and a 96% year-over-year growth rate, the company is poised to enter a new phase of growth and recognition on a national exchange.
IQSTEL Shareholders Letter
The Future Has Arrived
Dear Shareholders,
Today marks a defining moment in the history of IQSTEL. We are proud to announce that management has made the strategic decision to uplist to the NASDAQ Capital Market. This key step in this process—a reverse stock split—has now been completed, allowing us to meet the minimum share price required for the NASDAQ stock exchange.
Why a Reverse Stock Split—And Why Now?
Our management team firmly believes that IQSTEL’s current market capitalization on the OTC market does not reflect the true value of our company, especially considering our outstanding performance and solid financial foundation. We are confident that a NASDAQ listing will bring our market value more in line with our real business strength.
Key Facts Supporting Our NASDAQ Uplisting:
- Revenue Growth: In 2024, IQSTEL reported $283 million in revenue, yet our market capitalization remains at only about 10% of that figure.
- Explosive Growth: We achieved 96% year-over-year revenue growth, but our valuation has not kept pace with performance.
- Strong Asset Base: With $79 million in assets, our valuation still reflects only a fraction of our balance sheet strength.
- Proven Profitability: Our core telecom division generates positive adjusted EBITDA and net income, confirming the scalability of our business model.
- Revenue Per Share vs. Stock Price: We reported $1.40 in revenue per share in 2024, while the stock price trades at less than 10% of that figure.
- Global Reach: With operations in over 20 countries and direct B2B relationships with major telecom operators, a NASDAQ listing is expected to enhance our global visibility and allow partners, customers, and vendors worldwide to invest in us—opening the door to thousands of new potential shareholders.
A New Chapter: Growth, Visibility, and Opportunity
We believe a NASDAQ listing opens a new era of opportunities for IQSTEL:
- Enhanced Credibility: It solidifies relationships with key customers who value transparency and the governance standards of a national exchange.
- Accelerated M&A: It enables acquisitions and mergers with larger, high-quality companies as we pursue our roadmap to become a $1 billion revenue company with sustainable profitability.
- Institutional Access: It places IQSTEL on the radar of institutional investors and leading technology firms—many of whom are restricted by their investment policies from investing in OTC-listed or sub-$3 stocks.
- Visibility to Tech Buyers: It increases exposure to global tech corporations seeking to acquire fast-growing, revenue-generating platforms. IQSTEL has built a world-class, scalable, and hard-to-replicate global connectivity infrastructure that is ready for expansion. A NASDAQ listing helps solidify and highlight the intrinsic value of our business infrastructure.
- Short Seller Protection: It also helps mitigate the negative effects of short selling, thanks to NASDAQ’s stronger regulatory framework.
A Direct Listing—With No Dilution
It’s important to emphasize that this is a direct listing. We are not raising capital as part of the uplisting because we already meet the required stockholders’ equity requirement. This approach avoids dilution and preserves shareholder value.
Additionally, our main investors have extended the maturity of their instruments to Q1 2026, providing greater stability and reaffirming their confidence in our long-term trajectory.
In the future, we may consider raising capital in connection with strategic acquisitions or major growth initiatives.
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