Affluence Corporation (OTCID: AFFU) has issued a shareholder letter from President Oscar Brito, reflecting on the company's reorganization over the past year and outlining its next phase of strategic growth. The letter, released today, details significant progress in building a scalable technology platform and strengthening the company's capital structure, setting the stage for future expansion.
The company, now focused on Smart City, Industrial IoT, and security software solutions, has undergone a transformation centered on creating a stronger operating platform and disciplined growth strategy. Key to this transformation was the acquisition of Mingothings, which established an IoT platform with recurring enterprise customers and an international footprint. More recently, Mingothings acquired Marina Eye-Cam Technologies S.L., expanding capabilities in enterprise security, intelligent video analytics, and integrated hardware solutions. Management projects that these IoT operations could generate approximately $10 million in revenue during 2026, with expected EBITDA of well over $1.5 million, subject to market conditions and execution risks.
Affluence's acquisition strategy remains a core driver of long-term growth. The company is identifying well-managed technology companies in Europe and the United States that are below the size typically pursued by larger acquirers but have proven products and recurring customers. The goal is to build an integrated technology platform where complementary businesses benefit from shared resources and cross-selling opportunities. While the pace of acquisitions has been deliberate, management prioritized strengthening the financial foundation first, including a reverse stock split and balance sheet restructuring, before pursuing additional acquisition financing.
A major focus has been improving the capital structure. The company entered negotiations with holders of convertible debt to restructure a substantial portion into long-term preferred equity. If completed as contemplated, this restructuring is intended to eliminate a significant portion of outstanding convertible debt and remove deeply discounted conversion mechanisms that have caused dilution. The company believes this will lower its cost of capital and better align long-term capital partners with strategic objectives.
Looking ahead, Affluence views a future national securities exchange listing as the culmination of Phase One of its transformation, providing access to institutional investors and improved liquidity. Phase Two involves continuing to build a portfolio of Industrial IoT, Smart Infrastructure, AI, and enterprise software businesses across Europe and North America. Priorities for the remainder of 2026 include executing the balance sheet restructuring, integrating Mingothings and Marina Eye-Cam, advancing acquisition opportunities, increasing recurring revenue, and improving access to growth capital.
Brito emphasized that the past year was about building the foundation, and the next phase is about execution. The company remains committed to disciplined growth, prudent capital allocation, and transparent communication. For more information, visit the company's website at https://affucorp.com or Mingothings at https://www.mingothings.com.
Forward-looking statements in the letter involve risks and uncertainties, including the ability to complete acquisitions and restructuring, secure financing, and achieve projected financial results. The company assumes no obligation to update these statements.
