Metrospaces Issues November 2017 Shareholder Letter
NEW YORK, NY–(Marketwired – Oct 17, 2017) – Metrospaces, Inc. (OTC PINK: MSPC) today issued a letter to shareholders explaining the current state of projects, with revenue guidance on Etelix and new projects in consideration.
LETTER TO OUR SHAREHOLDERS
To Metrospaces Inc. (OTC PINK: MSPC) Shareholders:
2016 turned out to be a very difficult year due to the serious economic and political downturn in Venezuela. No economic or political forecast available could have ever predicted the complete destruction of the economy, political system and government institution. Due to this serious and very sudden exasperated downturn, Company management decided to refocus its activities on the US market. What once seemed to be an interesting play on one of the most dynamic and capitalist economic markets in Latin America turned out to be a very difficult time for the company and management. Nonetheless, the refocus of Company’s business plan to the US quickly proved to be a good decision, since, from the beginning, the Company was quickly able to capitalize on excellent opportunities. This refocus of its business plan implicated the redirection of economic and human capital resources to the most important and elemental aspects of the Company’s business. However, leaving some other important aspects in the cue.
Etelix USA.com: The Company finalized the acquisition of Miami-based Etelix USA.com back in April 2017. However, the company had been working on the acquisition since Q4 of 2016 and provided 3rd party debt financing to fuel growth starting Q1 of 2017. This financing has allowed Etelix to increase revenue year-over-year by approximately 100% from approximately $4.3M in 2016 to an expected $7.5M in 2017, while also raising EBITDA level from $130,000 in 2016 to an expected $300,000 approximately for 2017. Our expectation is for this growth to continue well through the year, and into 2018 as well. Our business plan for Etelix is to continue to grow their carrier-grade wholesale VoIP services, but also to start focusing more resources on their facility-based data center business. Currently, Etelix is working hand-by-hand with Metrospaces in finding locations and financing to build ground up data centers in secondary markets such as Austin, TX and Atlanta, GA. Our expectation is to find a site by Q1 of 2018, with the expectation of starting construction by 2Q of 2018. Etelix currently has world-class telcos as clients that have expressed considerable interest in setting up long-term agreements for VoIP-based data center services that would provide upstanding revenue-generating contracts before even breaking ground on these data center constructions. We think Etelix will continue to grow considerably in the coming quarters, while increasing shareholder value. Although it is markets that value companies, we think the market has not yet valued our acquisition in Etelix properly, as most like-carriers are valued in the .8-1.2X revenue for EBITDA positive telco carriers.
Ikal Lodge and Winery: Our Ikal Lodge and Wine business continues to be a stable source of cash flow. Even though final revenue is determined at year-end, due to final pricing agreement with buyers, we expect final revenue to be at approximately $330,000 for 2017, while generating approximately $110,000 in EBITDA. Ikal Lodge and Winery is a 75-hectare wine based hotel and vacation home project, located in Mendoza, Argentina. This amazing project consists of a 25-master suite luxury hotel, a world-class winery and 29 luxury villas that will be sold under fractional ownership. March began the annual wine grape harvesting season, and as we have done in the past 3 years, we sold our entire wine harvest to our long-lasting clients Pernod Ricard and Los Haroldos. This year, our focus has been on turning around our business plan away from the Venezuelan operation to US-based businesses and real estate projects. However, we expect 1Q of 2018 to refocus a good part of our effort in launching this amazing business. Once the real estate project is complete, total revenue from the sale of the villas is expected to be at approximately $70-90 million, with an EBITDA of about 45%. For more information, please see www.ikal1150.com.
Quarterly and Annual Filings: Due to the serious setback in our Venezuelan operation and business plan, all resources had to be directed to money-generating business acquisitions and growth funding, thus leaving little cash and human resources to our quarterly and annual financial filings. Nonetheless, we expect to start bringing our quarterly filings up to date within the next few days. It has been an enormous effort to refocus the business plan to the US, leaving little financial and human resources for much else. We expect that the most difficult part of this effort is behind us, which will start freeing up cash and human resources for our filings and other such activities. We thank our shareholders for their patience in that sense, and for their continued belief in the company and management team.
Real Estate Projects in the US: The Company’s management team has personally relocated to the city of New York in order to focus their efforts in more important capital markets, as well as real estate locations. Currently, the company is considering at least 2 projects in the New York City area, with an expectation to close on the acquisition of a residential luxury building site before end of 2017. Hopes and expectations are high; however, no assurances can be made that a deal will happen anytime soon, if at all.
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 2017 and beyond!
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 $450 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.
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.