iQSTEL Inc. has announced a significant financing agreement aimed at bolstering its growth strategy. On October 20, 2026, the company entered into a Securities Purchase Agreement with M2B Funding Corp. and ADI Funding LLC, securing a total of $3 million in funding. This financing is intended to support iQSTEL's planned acquisition of a 51% controlling interest in Ultranet Telecom Group.
The financing arrangement includes the issuance of senior secured, non-convertible promissory notes and warrants for common stock. Each note has a maximum principal amount of $1,500,000, with a total of two notes issued, one to each purchaser. The company aims to execute a definitive share purchase agreement for the Ultranet transaction in November 2026, targeting a closing in the middle of the first quarter of 2027.
Background
iQSTEL Inc. operates within the telephone communications industry (SIC: 4813). The company is publicly traded on the Nasdaq under the ticker symbol IQST. iQSTEL has been active in recent months, with several filings, including a Form 8-K on September 28, 2026, and another on September 8, 2026. The company is classified as a smaller reporting company and is based in Coral Gables, Florida.
What the Filing Says
The recent filing details the terms of the financing agreement, stating, "On October 20, 2026, iQSTEL Inc. entered into a Securities Purchase Agreement... for an aggregate maximum principal amount of $3,000,000." The notes will bear interest at 18% per annum, with principal payments due in installments over 24 months.
Impact
This financing could significantly impact iQSTEL's operational capacity and financial health. The proceeds are earmarked for the acquisition of Ultranet Telecom Group, which the company believes will contribute to making it cash-flow positive on a consolidated basis. The acquisition aligns with iQSTEL's strategy to expand its market presence and enhance its service offerings.
What's Next
The company plans to execute a definitive share purchase agreement for the Ultranet transaction in November 2026. The closing of this acquisition is targeted for the middle of the first quarter of 2027, pending customary closing conditions.