Affluence Corporation (OTCID: AFFU), a diversified global technology company focused on Smart City, Industrial IoT, and security software solutions, has issued a shareholder letter from President Oscar Brito reflecting on the company's first year of reorganization under new management and outlining its next phase of strategic growth.
The letter highlights that over the past year, Affluence has undergone a significant transformation centered on building a scalable operating platform, improving its capital structure, and establishing a disciplined strategy for long-term growth. Management believes the foundation has largely been established, and the focus is now shifting from restructuring to executing the growth strategy.
Affluence's long-term vision is to become a diversified technology company focused on Smart Cities, Industrial IoT, AI-enabled infrastructure, enterprise software, and intelligent infrastructure solutions. The acquisition of Mingothings provided the cornerstone of this strategy, offering an established IoT platform, recurring enterprise customers, and a growing international footprint. More recently, Mingothings completed the acquisition of Marina Eye-Cam Technologies S.L., expanding capabilities in enterprise security, intelligent video analytics, access control, and integrated hardware solutions. Management believes this acquisition strengthens the company's ability to deliver comprehensive technology solutions and creates cross-selling opportunities.
Based on current operating businesses, management projects that IoT operations, including Mingothings and Marina Eye-Cam, have the potential to generate approximately $10 million in revenue during 2026, with expected EBITDA of well over $1.5 million, subject to execution, customer demand, market conditions, and other customary business risks.
Strategic acquisitions will continue to be a principal driver of Affluence's long-term growth. The company believes the Industrial IoT, Smart Infrastructure, AI, and enterprise software sectors present an attractive landscape for disciplined consolidation. Across Europe and the United States, Affluence is identifying well-managed technology companies with proven products, recurring customer relationships, and experienced management teams. Many of these businesses are below the size typically pursued by larger strategic acquirers but have reached a level of maturity where joining a larger platform can accelerate growth for both organizations.
Affluence intends to build an integrated technology platform where complementary businesses benefit from shared engineering resources, expanded commercial reach, cross-selling opportunities, operational efficiencies, and greater scale. While management initially expected to advance portions of the acquisition strategy more rapidly, they made a deliberate decision to first strengthen the company's financial foundation, including completing a reverse stock split and substantially advancing balance sheet restructuring before pursuing additional acquisition financing.
The company is now better positioned to pursue acquisition financing and remains actively engaged with financing sources while advancing due diligence on previously announced opportunities and evaluating additional acquisition candidates.
Improving the balance sheet has remained a high priority. Affluence entered negotiations with holders of outstanding convertible debt to restructure a substantial portion of those obligations into long-term preferred equity securities. Definitive agreements remain subject to final documentation and execution, and there is no assurance the restructuring will be completed on the terms currently contemplated. If completed as contemplated, the restructuring is intended to eliminate a significant portion of outstanding convertible debt, replace legacy instruments with long-term preferred securities, and eliminate deeply discounted conversion mechanisms and other highly dilutive features. Management believes this has the potential to materially reduce future dilution, improve the balance sheet, lower the effective cost of capital, and better align long-term capital partners with strategic objectives.
The reverse stock split, balance sheet restructuring, and growth of the operating platform are components of a broader transformation. Affluence views a future national securities exchange listing as the intended culmination of the first phase of that transformation, which could provide broader access to institutional investors, improved market visibility, enhanced liquidity, and potentially lower-cost growth capital. That would support Phase Two of the strategy: continuing to build an integrated portfolio of complementary Industrial IoT, Smart Infrastructure, AI, and enterprise software businesses across Europe and North America.
Looking ahead, priorities for the balance of 2026 include continuing to execute the balance sheet restructuring, completing integration and commercial expansion of Mingothings and Marina Eye-Cam, advancing strategic acquisition opportunities, increasing recurring revenue and operating profitability, improving access to growth capital, and continuing to position the company for a future national securities exchange listing.
More information is available on the company's website at https://affucorp.com and Mingothings at https://www.mingothings.com.
