NEW YORK, NY, Nov. 15, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Metrospaces, Inc. (OTC PINK: MSPC) today issued a letter to shareholders explaining current state of projects for 4th Quarter.
LETTER TO OUR SHAREHOLDERS
To Metrospaces Inc. Shareholders:
As we now are set to close on our fiscal 2018 year, we have a lot to be proud of. Our refocusing of our business plan to US-based projects has now been completed, and we are now looking to firm up our presence in the US with ever more interesting projects. As a start-up real estate private equity firm, we are still growing through a lot of the typical growing pains that every early-stage company goes through, being most affected by the lack of more manpower and access to the right capital. Nonetheless, the fundamentals of the company are now stronger than ever, and we have set the foundations for the continued growth of our firm, and our portfolio projects. The sale of Etelix to Puresnax International (now IQSTel, Inc.) was just an example of how we will continue to acquire early growth-stage companies and projects, help them in their capital needs as well as business execution to a allow them to reach a stage for either a sale or direct listing in capital markets.
IQSTel, Inc. (OTC:IQST): Back in July 2017, we acquired a 51% majority-stake in Etelix USA.com, LLC a fully-integrated telecommunications and data center operator based in Miami for a total price of $2,040,000. When we started the negotiations process, Etelix was on an annual revenue run-rate of approximately $4 million with operating margins of approximately 2-3%. Additionally, the company was very limited as far as growth financing was concerned, and the acquisition was not a fundamental or realistic part of their growth strategy. As part of our value-added investment and entrepreneurial partnership with Etelix management, we have been able to grow revenue to an average of $1.3 million per month, giving it a revenue run-rate of approximately $14.5 million, with expected revenue for fiscal 2018-2019 of at least $12.5 million. Additionally, even though the company has undergone an important increase in capital expenditure to push revenue growth, operating margins are expected to close in the 4-5% range for fiscal 2018-2019. An important element to this revenue and operating growth has been access to debt capital in excess of $1.5 million in the form of various business funding and additional equity investment in the company by its shareholders. Also, there are 3 perspective acquisitions in advanced talks, one of them nearing an important stage in the negotiations that could lead to an acquisition in the short-term. In any case, acquisitions are now an integral and very realistic part of the company’s growth strategy. These, being only of some of the more visible value-added elements of our acquisition and partnership, that were instrumental in the sale of Etelix USA.com to full-reporting Puresnax International in exchange for an 80% of the capital stock to ex-Etelix shareholders. Therefore after the acquisition, Etelix USA.com shareholders now hold approximately 80% of the combined entity, with the remaining 20% now held by ex-Puresnax shareholders and other participants in the transaction. Shortly after the acquisition, Puresnax changed its name to IQSTel, Inc. while also adopting a new ticker symbol, OTC:IQST to better reflect its true nature and core of its business. On November 14, 2018 IQST filed its first consolidated annual financial statements stating $9.6 million in revenue, a growth of approximately 100% over the previous fiscal year. Currently, Metrospaces owns directly 6,136,848 common shares of IQST (stock certificate Nro. 1218). Even though we intend to hold our position for the long-term, as of November 14, 2018 closing price of IQST, our position is worth approximately $7.6 million, a return of over 280% in only 12 months. We will continue to help IQST in its organic and acquisition growth strategy, making our mid-to-long-term perspectives on the Company very exciting.
Blockchain Strategy in our Investments: We are very excited about the acceleration in the technological revolution being brought about through blockchain, Internet-of-things, apps, and others to the world and businesses. We are taking a very active role in merging these technologies in our business and our portfolio companies. IQST has already taken firm steps in bringing blockchain solutions to international telecommunications wholesale industry. A complete blockchain-as-a-service solution that would allow international carriers to transact their calls and make and receive payments would revolutionize the way this industry currently operates, bring down call transaction costs as well as lowering dramatically the level of uncollected payments and fraud to levels approximate to $0. This is one of the areas were IQST is currently focusing on and looking to start to implement potential solutions for 1Q of 2019.
Additionally, Metrospaces is looking at blockchain solutions in the real estate industry, allowing for better management, procurement, and execution of mortgages, financing and fractional sale of property in the real estate industry. We will be announcing the first concrete steps in this category in the next few weeks or months.
Ikal Lodge and Winery: Due to the Company’s hardened focus in the US market, Metrospaces has reached a deal with the ex-owners of Ikal Wine and Lodge for them to take back the asset in exchange for the unpaid portion of the due payment of approximately $3.9 million. The Company will take a $100,000 charge on this transaction by way of forfeiture of an initial payment towards the acquisition. The continued deterioration in the Argentinean economic situation, our inability to fund this project without hampering our focus in the US and renewed focus in the US were the fundamental reasons behind this decision.
Quarterly and Annual Filings: We have engaged the services of Robert Boyle CPA to audit our due 2017 and 2017 annual filings as well as review past quarters in 2016, 2017 and 2018. We are forecasting to have these audits and reviews finalized before end of 2018, however, we advise that these processes many times take longer than anticipated, therefore we are cautiously optimistic about meeting this estimate. It is our intention to refile for listing with the S.E.C., however, this final decision will be made once the audits and reviews have been finalized.
Real Estate Projects in Brooklyn: Metrospaces has acquired a minority equity stake in a 22-unit luxury condominium project near Prospect Park in Brooklyn, NY. However, even though this acquisition has been finalized and even though the company is an equity stakeholder in the entity that owns the construction site, we will expand on this acquisition to our shareholders only after the construction loan has been executed and when construction loans have been secured. It is our opinion that the company’s equity position will only have significant worth once construction starts. The Company’s management team is very excited about this project, however, due to the inherent risk in early stage real estate projects, we will only give details once we estimate that this project has achieved value to its shareholders. Once finalized, this project is expected to generate approximately $33 million in revenue and $12 million in operating income.
Other investment highlights:
JV Agreement with Proideas (http://proideas.com.ar/): This JV agreement will allow Metrospaces a partnership with a very prominent private equity group in Argentina, just as the country begins a new economic shift to a more pro-market environment. This partnership will bring not just new deal flow to the company, but more importantly will also bring in fresh financing for the company’s current projects.
JV Agreement with Prohotels of Argentina: In its refocusing of the company's business plan to hotel development, Metrospaces has executed a JV Agreement with Prohotels (http://www.prohotels.com/). This partnership gears itself perfectly with the company's development and financing skills. This agreement calls for the development of 4 new hotels in the coming 3 years. It is a testament to our business plan execution.
Again, we want to thank all our new shareholders for taking an interest in our story and have given us the chance to be where we are at! We will continue to work very hard to make your investment in our company a success, and have very high expectations for 2018 and beyond!
About Metrospaces:
Metrospaces www.metrospaces.net is a publicly traded real estate investment and Development Company which acquires land, designs, builds, and develops then resells condominiums and Luxury High-End Hotels, principally in urban areas of Latin America. The company's current projects are located in Buenos Aires, Argentina, and Caracas, Venezuela.
Six years ago Metrospaces shareholders saw a unique opportunity to participate in several exciting property markets around the world. Through their worldwide network of highly recognized real estate entrepreneurs, the company was able to capitalize on unique real estate development opportunities. Since inception the company has leveraged those relationships along with extensive financial expertise and transformed excellence by results.
Metrospaces is a boutique real estate development company, a product of the alliance of Metrospace shareholders, along with an elite group of real estate professionals and entrepreneurs located around the world. Company shareholders have extensive careers in real estate financing worldwide, and have funded projects both in the Americas and across Europe valued in excess of US $550 Million.
Metrospaces' majority shareholders have partnered with Investors on Elite properties including The London BLVGARI 5 Star Hotel, and are currently involved in negotiations for the development of several Elite luxury properties in South America.
Among Metrospace partners are Architects, Real Estate Developers, Agents and Attorneys of the highest standing, with extensive experience in the global property market.
Metrospaces was originally founded by company President Oscar Brito.
Relevant Links:
http://metrospaces.com/
http://www.etelix.com/
http://www.prohotels.com/
http://www.ikal1150.com
Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Metrospaces Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.
Metrospaces Inc.
CONTACT: Contacts: Ph: (646) 630-0927 investors@metrospaces.net Source: Metrospaces, Inc. www.metrospaces.com