Monitor for any conversion demands from Series B holders. The first conversion could come as soon as 5 days after notice. While the leak-out limits immediate selling, the overhang of potential shares may weigh on the stock. Watch for disclosures of conversion activity in subsequent filings.
Price Chart
Executive Summary
iQSTEL amended its Series B Preferred Stock certificate of designation to allow holders to convert into common stock at any time upon 5 days' notice (previously only after a 12-month term with 60 days' notice). The change accelerates potential dilution: each of the 200,000 authorized Series B shares converts into 12.5 common shares, and a one-year leak-out agreement limits post-conversion selling to 5% of monthly liquidity. While no immediate conversion is reported, the modification increases dilution risk for common shareholders.
Key Facts
- Conversion right is exercisable at any time upon 5 days' written notice (previously only after 12-month term).
- Notice period reduced from 60 days to 5 days.
- Conversion rate: 12.5 common shares per Series B preferred share.
- Leak-out agreement restricts public sales to no more than 5% of prior month's stock liquidity for one year post-conversion.
- 200,000 authorized Series B preferred shares; liquidation preference $81 per share plus accrued dividends.
- Dividend rate: 24% per annum on the issue price, payable in kind.
Financial Impact
If all 200,000 Series B shares convert, common share count could increase by up to 2.5M shares (200k × 12.5), representing significant dilution relative to an $8M market cap. The leak-out limits selling to 5% of monthly liquidity, capping near-term share pressure.
Risk Factors
- Potential dilution from preferred-to-common conversion increases share count.
- Preferred dividend obligations (24% annual) may pressure cash flow if paid in cash.
- Leak-out agreement only caps, does not eliminate, selling pressure from converted shares.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001663577-26-000194 |
| Document: iqst8k061726.htm | 0001663577-26-000194 |
| Document: 0001663577-26-000194-index-headers.html | 0001663577-26-000194 |
| Document: 0001663577-26-000194-index.html | 0001663577-26-000194 |
| Document: 0001663577-26-000194.txt | 0001663577-26-000194 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 8-K | $0.8336 | awaiting T+1 | — | $0.8735 (−4.79%) |
Jul 16, 2026 14w ago | Press Release | $1.22 $1.24 | ▲ +1.64% | ▲ +2.63% | $0.8735 (−28.40%) |
Jun 17, 2026 18w ago | 8-K | $1.40 $1.27 | ▲ +9.29% | ▲ +8.97% | $0.8735 (+37.61%) |
Jun 8, 2026 20w ago | 8-K | $1.01 $1.11 | ▲ +9.90% | ▲ +10.19% | $0.8735 (−13.51%) |
Jun 3, 2026 20w ago | EFFECT | $1.15 $1.02 | ▲ +11.30% | ▲ +11.70% | $0.8735 (+24.04%) |
May 1, 2026 25w ago | 8-K | $1.45 $1.45 | · 0.00% | ▼ −0.80% | $0.8735 (−39.76%) |
Apr 10, 2026 28w ago | 8-K | $1.75 $1.60 | ▲ +8.57% | ▲ +9.78% | $0.8735 (+50.09%) |
US Market Status
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