secwatch.observer — SEC 8-K summary
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Issuer:     iQSTEL Inc (IQST)
CIK:        0001527702
Form:       8-K
Filed at:   2024-01-25T23:59:59+00:00
Accession:  0001663577-24-000016
Event type: m_and_a
Sentiment:  neutral
Materiality: 0.75
Item codes: 1.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

iQSTEL agrees to acquire 51% of QXTEL for $5M; also enters $3.5M convertible note financing
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- To acquire 51% of QXTEL, a UK telecom with 5B+ voice/A2P SMS transactions, for $5M: $1.5M non-refundable deposit, $1.5M cash, $2M in note or stock at seller's option.
- Seller may earn additional up to $1M earn-out if iQSTEL 2024 net income exceeds $1M; closing must occur by April 30, 2024, subject to $1.5M financing condition.
- Secured $3.5M gross ($3.89M face) convertible note with M2B Funding, convertible at $0.11/share; 18% interest, one-year term, secured by all assets, with variable-rate restrictions.
- iQSTEL must reserve sufficient shares for conversion; note also carries 'Kicker Shares' equal to 10% of principal divided by $0.11.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1527702/000166357724000016/0001663577-24-000016-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1527702/000166357724000016/iqst8k011924.htm
  HTML page:      https://secwatch.observer/filing/0001663577-24-000016

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