Upco International Inc. Letter to Shareholders 23, 2020

Vancouver, BC, December 23, 2020, Upco International Inc. (CSE: UPCO) (OTC: UCCPF) (Frankfurt: U06) (“Upco”) is pleased to send an update to all Upco stakeholders on what has been achieved in 2020 and the next steps. These documents can be accessed from the SEDAR web site at www.sedar.com.

In July 2020, we announced the new strategy defined by the new Management appointed a few months earlier. We want to inform all Shareholders about the new plan and the strategy of Upco by emphasizing the determination to focus on the right priorities and the revenues which will flow in the company from now in order to improve the business operations and ultimately, maximize shareholder value.

We would like to review what has been achieved by Upco during the last six months and provide an outlook for the next year, taking into account both internal developments and external conditions.

The highlighted areas of considerations are the following:

  • Market Opportunities & Business Model
  • M&A
  • Restructuring & Financial control
  • Sales and Marketing

Market Opportunities & Business Model

The COVID-19 pandemic has disrupted the daily life of people everywhere. The Pandemic has emphasized our reliance on technology, some of the changes, however, such as the accelerated shift from in-store purchasing to online and digital, present tremendous new opportunities. Following these recent shifts in consumer behavior which we believe to be permanent, we have re-evaluated and shifted our efforts and priorities accordingly. Digital transformation is sweeping through all industries. Consumers have squeezed years-worth of adoption of apps and online banking into just a few months.

Upco’s new business model is based on building a Federated Business Platform for the Telco-Digital space, while such platforms are becoming the predominant business model in the digital era, the application to the Telco business is very limited worldwide, and new services are gaining momentum. Upco’s model responds to an opportunity to leverage this approach and play a lead role.

M&A

Under the Federated Carrier Program (FCP), the first acquisition has been completed on November 21st acquiring Equinox Group which has given us an initial footprint in the Americas that is very strategic for Upco for both areas’ telecom and digital, the second one is in the pipeline, focusing on Asia, and this will complete the first milestone of our Strategy and will allow benefiting from a consolidated over ten years market position in the region Asia-Pacific. The new target is fully complementary to our subsidiaries in the wholesale Telecom market; Additional targets will be considered based on the financial resource availability and the geographic location with the objective to create long term conditions to grow up in the telecom arena.

This strategy will create a solid Revenues source that will enable Upco to accelerate its goal and ambition.

Restructuring & Financial control

 With regard to the Financial Statements, the main focus of the new Management has been on corporate restructuring, reducing the liabilities with an excellent result by decreasing US$ 351.868 in 2020 of work representing the 27 % in Q3 comparing the Year-End Financial Statements 2019. All efforts dedicated to the restructuring and M&A without new capital are the fundamental objectives achieved by the new management to start the strategy of Upco. Our ambitious plans are premised on our ability to continue funding our business. In 2020, we undertook cost-cutting measures. Our disciplined approach to costs will continue through 2021. Surely the new situation will not avoid the need for additional financial resources to support the short- and medium-term growth of our targeted ambitious growth plan in the next 2 years.

Sales & Marketing

Relevant goals are on the agenda of Upco as an outcome of the work done in 2020 considered a transition year. Upco will support the overall sales strategy by obtaining revenue coming from the telecom operation. To scale up our sales and marketing activities on a bigger scale, new partners will be affiliated in the Federated Business Platform; Marketing resources will be necessary to achieve the telecom and digital sales growth which could come only from the new investments and push during the next years our Digital app Upco Pay.

The Board has been showing to all Upco stakeholders, “we think differently” and pursue major objectives and opportunities.  We have been developing new revenue strategies and technologies for Upco that we believe can be scaled globally and in which we can achieve a higher value in the following years. To get there, we will require all present shareholders to support us by attracting new investors who believe in our plan and execution.

On the Management side, we will continue to be nimble and adapt our business model as market conditions evolve. We remain optimistic that these avenues will support our plans. With a smaller nimbler and more focused team we have achieved a great deal and proven to ourselves we are more than capable of thriving in this new economy.

UPCO’s founder and CEO Andrea Pagani says: “Our stock and the overall market have had extreme fluctuations due to multiple factors. While we typically do not discuss the performance of our stock price in our press releases or communications with shareholders, this year has been far from typical and we decided to make an exception.

I would like to thank everybody for the incredible support in the Market recently and we look forward together to have a positive impact really soon; I wish you all a beautiful Merry Christmas extended to all your family.”

 

About Upco International Inc.

Upco International Inc. (CSE: UPCO) is a Vancouver and New York City-based telecom and digital services company founded in 2014 that provides price-competitive, high-quality and privacy-protected telecom and communication payment social platform in niche markets globally.

The Company operates primarily in the telecommunication industry as a global telecom carrier within the international VoIP (voice over IP) wholesale business with a current focus on wholesale international long-distance traffic termination (the Wholesale Telecom business unit or B2B vertical of the business).

Complementary to the goals in its B2B segment, the Company targets to provide subscribers of partner global and local telecom companies reasonable pricing on high-quality on-network international calls, while still offering its users free texting, international airtime top-up capabilities (the ability to add talk-time/data to a user’s pre-paid mobile phone plan), and other social media features present in most over-the-top applications around the world.

The Company is also present in the process of consolidating its wholesale business through the reorganization of its operations into Upco System Inc., while trying to develop its own customer base via its attractive rates and flexible calling plans offered through Upco-out in its Upco Mobile Messenger application (the Digital Services business unit or B2C vertical of the business). Additionally, the Company announced the development of UpcoPay to achieve its desired network effects among its customers in the short to medium term.

Please visit www.upcointernational.com for further information.

ON BEHALF OF THE BOARD OF DIRECTORS

Andrea Pagani, CEO and Director
office@upcointernational.com
212-461-3676


Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: “will” “may” “believe”, “expect”, “anticipate”, “intend”, “estimate”, “development”, “forthcoming”, “potentially” and similar expressions, or are those, which, by their nature, refer to future events. Upco cautions investors that any forward-looking information provided by Upco is not a guarantee of future results or performance.

Alibaba, Upco International, Palantir – The next Boom!

In a current article from December 23, 2020, Stefan Feulner, author at News.Financial, writes about the companies Alibaba, Upco International and Palantir. You can find the complete article here.

Here is an excerpt from this article:

THE NEXT BOOM!

The business model of telecom service provider Upco International was dead as a doornail until May 2020, when the entire management team was replaced and Andrea Pagani, a CEO with a career spanning more than 20 years in the telecommunications industry, was appointed. The first goal was to split the general store into two independent business units. The first is the Wholesale Telecom unit which corresponds to the classic telecommunications wholesale business. Here, better contract terms with international telecommunications providers are achieved by pooling many smaller customers for cross-border telephone traffic.

Wholesale Telecom is coordinated by Upco International but operationally managed by dedicated companies. These companies will be integrated into the Upco group of companies over time. About four weeks ago, the first acquisition was successful. Equinox is a niche operator based in the Dominican Republic that provides telecommunications services to immigrants from Central and South America and the Caribbean to the United States.

EVERYTHING FROM A SINGLE SOURCE

Although the two segments are separate, customers are free to use any of the Upco Group’s services. This option increases the customer base to monetize digital services with the second segment. Here, the Canadians are positioning themselves to respond efficiently to digital transformation by focusing on two key areas: Voice and Data Services and Digital Payments and Money Transfers. Voice and data services such as voice over IP and chats will be handled by UpcoNet, while UpcoPay will handle digital payments.

FROM TELECOM PROVIDER TO BLOCKCHAIN

Initially, UpcoPay will run as an innovative, highly secure, based on a blockchain, direct payment method between individuals or people and merchants. Building on this, after implementing an e-wallet, it will be possible to top up money, process payments, or even transfer foreign exchange without setting up an account or entering sensitive banking information.

From 2021, Upco users in Europe will then be able to use UpcoPay to send and receive money quickly, securely, and without using a credit or debit card, but much more cheaply than competitors such as Western Union or PayPal. This service will be expanded over time to other areas such as retail and hospitality. Upco International has a unique starting position from the mix of telecom provider and international digital payment services.

Alibaba, Upco International, Palantir – Der nächste Boom!

In einem aktuellen Artikel vom 23.12.2020 schreibt Stefan Feulner, Autor bei Inv3st.de, zu den Unternehmen Alibaba, Upco International und Palantir. Den vollständigen Artikel finden sie hier.

Hier ein Auszug aus diesem Artikel:

DER NÄCHSTE BOOM!

WKN: A2H7JC ISIN: CA9152971052 Symbol: U06

Mausetot war das Geschäftsmodell des Telekomdienstleister Upco International bis zum Mai des Jahres 2020. Dann wurde die komplette Geschäftsleitung ausgetauscht und mit Andrea Pagani ein CEO berufen, der eine mehr als 20- jährige Karriere in der Telekommunikationsbranche hinter sich hat. Als erstes Ziel wurde ausgerufen, dass der Gemischtwarenladen in zwei voneinander unabhängigen Geschäftseinheiten geteilt wird. Der Erste ist der Bereich Wholesale Telecom. Dieser entspricht dem klassischen Telekommunikationsgroßhandel. Hierbei werden bessere Vertragsbedingungen mit den internationalen Telekommunikationsanbietern durch das Poolen vieler kleinerer Kunden beim grenzüberschreitenden Telefonverkehr erreicht.

Der Bereich Wholesale Telecom wird von Upco International koordiniert, aber operativ von zweckbestimmten Firmen verwaltet, die im Laufe der Zeit in die Upco-Unternehmensgruppe integriert werden. Vor etwa vier Wochen wurde erfolgreich die erste Akquisition getätigt. Die Equinox ist ein Nischenanbieter aus der Dominikanischen Republik, der Einwanderer aus Mittel- und Südamerika sowie der Karibik in die USA mit Telekommunikationsangeboten versorgt.

Alles aus einer Hand

Obwohl die beiden Segmente voneinander getrennt sind, steht es den Kunden frei alle Dienste der Upco-Gruppe genutzt werden. So steigert man die Kundenbasis, um mit dem zweiten Segment Digital Services zu monetarisieren. Hier positionieren sich die Kanadier so, dass effizient auf die digitale Transformation reagiert werden kann, indem weiterhin zwei wichtige Bereiche im Fokus stehen: Voice- und Daten-Services sowie digitale Zahlungen und Geldtransfers. Die Voice- und daten-Services wie Voice- over IP und Chats werden über UpcoNet abgewickelt, während digitale Zahlungen über UpcoPay laufen sollen.

Vom Telekomanbieter zur Blockchain

Zunächst soll Upco Pay als innovative, hochsichere, da auf einer Blockchain basierenden Direktzahlungsmethode zwischen Personen oder Personen und Händler laufen. Aufbauend darauf, nach der Implementierung einer e-Wallet ist es möglich, Geld aufzuladen, Zahlungen abzuwickeln oder auch Devisen zu transferieren, ohne dass man ein Konto einrichten oder sensible Bankdaten eingeben muss. Ab 2021 sollen dann Upco-Benutzer in Europa UpcoPay nutzen können, um Geld einfach, sicher und ohne die Verwendung einer Kredit- oder Debitkarte zu senden und zu empfangen, allerdings viel günstiger als bei Konkurrenten wie Western Union oder Paypal. Dieser Service wird im Laufe der Zeit auf andere Bereiche wie Handel und Gastronomie ausgeweitet werden. Damit verschafft sich Upco International aus dem Mix aus Telekomanbieter und internationaler, digitaler Zahlungsdienste eine einzigartige Ausganssituation.