NEW YORK, NY / ACCESSWIRE / October 7, 2021 / Metrospaces, Inc. (OTC PINK:MSPC) Issues Letter to Shareholders from CTO, Alejandro Laplana and CEO Oscar Brito.
Dear Shareholders:
As a part of our continuing commitment to engage our shareholders with clear and consistent communication, we wanted to provide you with an update on the most immediate innovations at Metrospaces in advance of the release of our upcoming unaudited financial statements.
First, we're excited to welcome the leadership of Alejandro Laplana, both as Metrospaces' CTO and as a member of our Board of Directors. Alejandro and his team at Shokworks have been a key part of our plan to transform Metrospaces into the definitive leader in the proptech industry.
Together, we're excited to reinvent the ethos of this company, evolving from a traditional real estate company to a real estate company that is technology-first.
During the past quarter, we've made key acquisitions and developed important partnerships that will fuel the company's metamorphosis.
Acquisition highlights include the purchase of Houston's Brazos Atrium office building, which will serve as a perfect case study showing how an IoT-driven property improvement model can yield impressive ROI with rapid transformation. Additionally, the development of the Infinity View Villas in the Dominican Republic serves as a springboard both for our co-living platform, Metrohouse, and an investment vehicle through our upcoming tokenization platform, Metrocrowd.
Our partnerships with technological leaders in the market will not only yield immediate financial benefits, but also have long-term growth implications for the company. We've signed an agreement with Crown Electrokinetics to utilize its revolutionary Smart Window inserts to create energy efficiencies in our properties that are expected to yield over 25% reduction in energy costs. Our partnership with Cryptobucks ensures that our investors and members can diversify their payment methods or investment capital to include cryptocurrency.
These partnerships will be followed by opportunities to utilize our real estate holdings to incorporate bitcoin mining as a revenue stream. Additionally, we're negotiating partnerships that will allow Metrospaces to utilize virtual reality technology to revolutionize the real estate market for brokerages and agencies.
These strategic partners are selected to extract higher revenue and lower the operating expenses of our assets. As these assets continue to grow in NOI, we will then tokenize them to further democratize the investment opportunity for signature real estate assets.
Our new CFO, Steven Plumb, is continuing to make improvements in the Metrospaces balance sheet. Our new leadership team is excited to share both an increase in the company's core assets, as well as a renewed profitability, now that Metrospaces is in an EBITDA-positive position.
Partnership with Shokworks: Through our relationship with Shokworks, we've been able to develop some of the most innovative blockchain-based digital platforms introduced in the real estate space. We're excited to share details below on both Metrohouse and Metrocrowd, which will be released in beta later this year. Additionally, we've been able to partner with key Shokworks portfolio companies such as Cryptobucks to further our revenue opportunities.
Metrohouse -Co-Living Platform: Metrohouse will launch in beta during Q4 with an inaugural launch in one city, with approximately 33 units available for lease. Our second and third markets will launch during mid- to late-4th quarter, and we project that by year end we'll have between 120-150 total rentable units.
Metrocrowd - Tokenization platform: The Metrospaces and Shokworks teams are moving rapidly to complete the development of our proprietary real estate tokenization platform, Metrocrowd. This revolutionary resource will not only cater to third-party real estate owners and developers but will also allow the company to be a principal tokenizing our internal assets. Metrocrowd with be launched in several stages, with beginning early in Q4. Rollouts will continue until mid-December when we expect to have the final version active. Metrocrowd will be offered to world-class real estate developers and owners as a third-party service. Additionally, Metrospaces as a principal will continue to acquire assets that we will later tokenize on the platform. It is not our intention to be a hard-asset company, but we are committed to taking advantage of any exceptional opportunity we find in the market. We will use a variation of strategies to fund these acquisitions, including partnering with private equity investors and other off-balance sheet structures.
We believe that the leader in this space will not only be the one that develops the best technology, but the one that is able to bring the most profitable and unique real estate assets to the platform. With a strong background in real estate ownership and development, our management team has access to exceptional real estate assets and opportunities, both with third-party owners and assets for acquisition.
Acquisitions/investments:
The Brazos Atrium office complex already brings Metrospaces to an EBITDA-positive cash-flow from rent income, only 8-9 months into our transformation to a Proptech company. This is an accomplishment rarely achieved in up-and-coming companies. Additionally, the company acquired this asset at an impressive 12% capitalization rate. On a leveraged basis, we expect this asset to generate an IRR of greater than 30% for the company and for future token investors
The company has initiated the construction of Phase III of Infinity View Villas, which consists of three luxury 3-bedroom villas that will sold under fractional ownership and will also be payable with cryptocurrency via Cryptobucks. Phase I is expected to be finalized before end of 2021, and Phase III should be finished by 3Q of 2022. This will bring a total of 6 villas and 18 bedrooms of new inventory to our Metrohouse co-living platform. Also, as these assets are completed and start generating rental income, they will later be tokenized on the Metrocrowd platform.
Balance Sheet and Capital Structure:
The company has reduced its total liabilities by over 70% from $14.8M. Metrospaces' assets have grown from $213,130 on Dec. 31, 2020, to close to $2 million by the end of 3Q 2021. Our Sept. 30 financials, which we will release in the coming days, will offer shareholders a look at the exceptional progress made in our debt-reduction plan. Not only will we see a dramatic reduction in overall liabilities and an increase in assets, but most importantly, the company will show its first revenue from the new business plan in the proptech realm and be able to share an EBITDA-positive position.
The company has filed with the SEC to register a Regulation A offering. Once this offering is cleared, we will have access to cheap growth capital to continue our investment in our digital platforms, to acquire assets and to pay off any outstanding debts.
Management Team:
Our management team is committed to the growth of Metrospaces as a leader in the proptech industry, and includes:
Oscar Brito - CEO
Oscar brings more than a decade of innovative leadership in the real estate space, as well as unparalleled connections to dealmakers in the industry.
Alejandro Laplana - CTO
As CEO of Shokworks, Alejandro has led the technological growth and development of more than 30 portfolio companies, and he brings that same business acumen and innovation to Metrospaces.
Steven Plumb - CFO
Steven has an outstanding reputation in the financial community as a leader who works with integrity. His work as CFO with tech-forward companies coupled with his big four experience make him a great partner for our current and planned financial goals.
Daniel Laplana - SVP of Business Development
Daniel is a tech leader who makes things happen. His strong connections in emerging technologies and his real estate roots make him a powerful business development innovator.
This gives the company a powerhouse team of leaders with a proven track record for success.
Communication to Shareholders: As a part of our corporate transformation, we are committed to the highest level of transparency with you, our shareholders. We've put in place a team of professionals, including public relations and digital marketing agencies, that will allow us to improve and refresh our communication strategy to ensure the prompt and accurate flow of information to our audiences. These communications leaders will guide the flow of information for Metrospaces to ensure that all our key partners are informed, included and engaged.
Integrity is one of our fundamental values at Metrospaces, and we continue to research and pilot innovative and efficient methods of communicating our goals, projects and successes with you. Thank you for joining us as we embark upon this metamorphosis of Metrospaces.
Alejandro Laplana Oscar Brito
Relevant Links:
http://metrospaces.com/
https://shokworks.io
https://cryptobucksapp.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.
Metrospaces Inc.
Contacts:
investors@metrospaces.com
www.metrospaces.com
SOURCE: Metrospaces, Inc.
View source version on accesswire.com:
https://www.accesswire.com/667145/Letter-to-Our-Shareholders
