Affluence Corporation (OTCID: AFFU) issued a shareholder letter from President Oscar Brito reflecting on the company's first year of reorganization and outlining its next phase of strategic growth. The letter highlights the transformation following new management, focusing on building a scalable technology platform, a disciplined acquisition strategy, and strengthening the capital structure.
Over the past year, Affluence has undergone significant changes centered on creating a stronger company with a scalable operating platform, improved capital structure, and disciplined long-term growth strategy. The acquisition of Mingothings established the cornerstone of this strategy, providing an established IoT platform with recurring enterprise customers and an international footprint. More recently, Mingothings completed the acquisition of 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 over $1.5 million, subject to execution and market conditions.
The letter emphasizes that strategic acquisitions will remain a principal driver of long-term growth. Affluence is targeting well-managed technology companies in the Industrial IoT, Smart Infrastructure, AI, and enterprise software sectors across Europe and the United States. These businesses often occupy an underserved segment, being below the size pursued by larger acquirers yet mature enough to benefit from joining a larger platform. The company aims to build an integrated technology platform where complementary businesses share engineering resources, commercial reach, cross-selling opportunities, and operational efficiencies.
Management made a deliberate decision to strengthen the company's financial foundation—including completing a reverse stock split and 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.
Improving the balance sheet has been a top priority. Affluence entered negotiations with holders of outstanding convertible debt to restructure a substantial portion into long-term preferred equity securities. If completed as contemplated, the restructuring is intended to eliminate a significant portion of convertible debt, replace legacy instruments with long-term preferred securities, and eliminate deeply discounted conversion mechanisms and other dilutive features. This could materially reduce future dilution, improve the balance sheet, lower the cost of capital, and align capital partners with strategic objectives.
The letter views a future national securities exchange listing as the intended culmination of Phase One of the transformation, providing access to institutional investors, improved visibility, enhanced liquidity, and potentially lower-cost growth capital. Phase Two involves continuing to build an integrated portfolio of complementary businesses across Europe and North America.
Priorities for the balance of 2026 include executing the balance sheet restructuring, integrating Mingothings and Marina Eye-Cam, advancing strategic acquisitions, increasing recurring revenue and profitability, improving access to growth capital, and positioning for a future exchange listing. The company's website is https://affucorp.com.
