IQSTEL and Cycurion form mutual equity partnership, $1mln stock exchange planned.

IQSTEL and Cycurion have signed a Memorandum of Understanding to become mutual equity partners, exchanging $1 million in shares and distributing half of each company's exchanged shares as a dividend to enhance shareholder value. This strategic partnership aims to create a powerhouse in AI-driven cybersecurity for the global telecommunications industry and insulates both companies from potential disruptions caused by changes in U.S. tariffs.

IQSTEL Inc. (NASDAQ: IQST) and Cycurion Inc. (NASDAQ: CYCU) have signed a Memorandum of Understanding (MOU) to become mutual equity partners, exchanging $1 million in shares and distributing half of each company's exchanged shares as a dividend to enhance shareholder value. This strategic partnership aims to create a powerhouse in AI-driven cybersecurity for the global telecommunications industry and insulates both companies from potential disruptions caused by changes in U.S. tariffs.

Under the MOU, each company will issue $1 million worth of its common stock to the other, with the number of shares based on the lower of the Nasdaq closing price on the trading day immediately preceding the signing of the binding agreement or the average Nasdaq closing price over the five trading days preceding the signing. Subject to board and regulatory approvals, each company intends to distribute up to 50% of the shares it receives to its existing shareholders as a stock dividend, transforming IQSTEL shareholders into Cycurion shareholders and vice versa.

The partnership leverages Cycurion's strong U.S. government presence and IQSTEL's network of 600+ global telecom operators, creating cross-selling opportunities and dividend benefits. The companies expect to execute the definitive agreement within 30 days, with the dividend registration date to be announced separately.

IQSTEL brings its AI services through the IQSTEL Intelligence division, with two market-ready AI products: Airweb.ai and IQ2Call.ai. Cycurion contributes its expertise in AI-based cybersecurity services focused on telecom networks, government infrastructure, and enterprise systems. The integration of these technologies creates a value proposition that combines conversational AI capabilities with cybersecurity expertise.

The partnership's focus on telecommunications security is particularly significant given the growing threats in this sector as network infrastructure becomes increasingly critical. With 5G deployment expanding globally and IoT device proliferation accelerating, telecom security represents a substantial market opportunity.

Both companies have invested millions of dollars over the last five years into proprietary AI assets and technologies, positioning them to capture significant new opportunities in the AI-driven cybersecurity landscape. The market has yet to fully realize the potential value of this collaboration, which positions both companies to set a new standard for what's possible.

The MOU outlines an initial 60-day exploratory period, with the companies planning to execute the definitive agreement within the next 30 days. The partnership opens the door to further collaboration, including joint ventures, expanded R&D initiatives, and integrated go-to-market strategies designed to accelerate growth and maximize value for their combined shareholder base.

References:
[1] https://www.stocktitan.net/news/CYCU/iqst-iqstel-and-cycurion-cycu-sign-mou-for-equity-exchange-and-6x8ae26w62zr.html