NEW YORK, NY--(Marketwired - Jun 1, 2017) - Metrospaces, Inc. (
LETTER TO OUR SHAREHOLDERS
To Metrospaces Inc. Shareholders:
On March 28th of this year, Metrospaces announced a divestiture of assets and refocus of business plan to the US. Latin America has been a great market in the past, but in particular Venezuela has deteriorated to the point of an almost failed state, and Argentina has not yet harnessed the recovery that was expected from Mauricio Macri's Presidential win. Therefore, the board and management has made a firm decision to divest our Venezuelan assets and refocus our capital and efforts into the US market. We believe that certain expected actions from the incoming Executive Administration is giving investors the willingness to make investments in the US, thus starting what seems to be a lasting economic recovery. The company has enough access to main markets in the US to create additional shareholder value while focusing on more stable economies.
New Projects:
Etelix.com USA LLC: On April 28th, 2017 Metrospaces announced the acquisition of 51% of the capital stock of Etelix.com USA. Etelix is a Miami-based, FCC-licensed voice, SMS and data host and carrier. The company's main products and services are international voice wholesale operation and distribution, data hosting services as well as residential and commercial triple-play products. The company was founded in 2007 and has been profitable since inception. Etelix grew revenue from approximately $1M in 2015 to $4M in 2016. First quarter 2017 revenue generated was approximately $1.8M and profitable on a net income basis. Current run-rate for revenue in 2017 is approximately $8M, however continues to grow. The redefinition of Etelix's business plan will be to focus on the construction from the ground up and operation of data centers in US markets, focused on the VoIP data market. Etelix's client list are among the most important voice carriers in the world, some of which have already expressed interest in contracting Etelix's expertise to offer this service in certain US markets. The rare combination of Etelix's expertise in VoIP traffic and data center management, along with Metrospaces's expertise in construction and real estate financing is what we expect to be the "secret sauce" of this acquisition. So far, Metrospaces has arranged for 3rd party financing for approximately $150,000. Even though this is a modest amount of financing, it has helped raise revenue from approximately $515,000 in January to $710,000 in March, approximately. We expect a steep growth revenue curve to continue for at least for the next 12-18 months, as long as Metrospaces continues to provide Etelix with additional working capital to fund growth. Etelix will be consolidated under Metrospaces' financials and will remain an independent entity until such time as management and the board decide on spin-offs, other divestitures, sales or complete merger. This is something management and the board will decide in the mid-future.
For more information: www.etelix.com
Portfolio Projects:
Ikal Lodge and Winery: The 2017 grape harvesting has been a record on a revenue basis. A lower yield in net Kilos harvested, resulted in price increases that more than compensated the drop in production. The company expects to book approximately $320,000 in revenue with an EBITDA of about $100,000 on 2017's harvest. This year, we will for the first time be selling and exporting a premium wine in the $50-60 retail price range. We expect this entire year's wine line to generate an additional $50,000 in revenue for the year. Our wine is a great product, but basically it serves as an amenity for our real estate deal on the project. Ikal Lodge and Winery is 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. Total revenue from the sale of the villas is expected to be at approximately $100 million, with and EBITDA of about 45%. We are in advanced negotiations with 3 potential investors to put up 100% financing, but no assurances can be given as far as timing for the construction of this project.
For more information: www.ikal1150.com
Venezuelan Hotel Projects: All Venezuelan assets are being divested from the company, and very little-to-none write down expenses are expected. However, the company will keep its shareholders advised on these structures and they will be ultimately affect the company's balance sheet.
Other Real Estate Projects: The Company is currently taking very interested looks into the Brooklyn market for potential condo and apartment developments projects. Management has held conversations with land owners for potential JV and acquisition. No talks are definitive, but this is a market where we expect to focus and be active in the near-to-mid-term
Other Investment highlights:
Company Reporting Status: The Company began its effort to comply with filing requirements to be listed on the OTC market. On March 21st, 2017 it filed its 2015 annual K report. Currently, the company is working with an accountant, auditor and legal counsel on the necessary quarterly and annual filings, along with other filing requirements on acquisitions etc. to bring the company to fully reporting status. No time frame can be given as to when all filings will be updated, however this is certainly a top priority for management, currently, along with financing and integrating the Etelix acquisition.
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.
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 markets of the Americas. The company's current projects are located in Buenos Aires, Miami and looking into NYC.
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 Metrospaces' 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, and Co-founded by Daniel Silva.
Relevant Links:
http://metrospaces.net/
http://www.ikal1150.com
http://www.prohotels.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.
Contact Information:
Metrospaces Inc.
Ph:305-600-0407
Investor Relations
investors@metrospaces.net
www.metrospaces.net