IQSTEL, Cycurion to Merge in $1mln Stock Exchange, Share Half as Dividend.

IQSTEL and Cycurion have signed a MOU to become mutual equity partners through a planned $1 million stock exchange. Half of each company's exchanged shares will be distributed as a dividend to enhance shareholder value. The partnership will create a powerhouse in AI-driven cybersecurity for the global telecommunications industry, leveraging the companies' combined investments of millions of dollars in proprietary AI assets and technologies over the last five years.

IQSTEL Inc. (NASDAQ:IQST) and Cycurion Inc. (NASDAQ:CYCU) have signed a Memorandum of Understanding (MOU) to become mutual equity partners through a planned $1 million stock exchange. The agreement, announced on Thursday, aims to create a powerhouse in AI-driven cybersecurity for the global telecommunications industry. Half of each company's exchanged shares will be distributed as a dividend to enhance shareholder value [1].

Under the MOU, each company will issue $1 million worth of its common stock to the other. The number of shares will be based on the lower of the Nasdaq Official Closing Price on the trading day immediately preceding the signing of the binding agreement and the average Nasdaq Official Closing Price over the five (5) trading days immediately preceding the signing of the binding agreement [2]. 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 stock swap opens the door for powerful cross-selling opportunities. IQSTEL will be able to introduce its Telecom, Fintech, and AI-driven services to Cycurion's established customer base, while Cycurion will gain access to offer its advanced cybersecurity solutions to some of the largest telecom operators in the world through IQSTEL's extensive global network [1].

The MOU outlines an initial 60-day exploratory period, with the companies planning to execute the definitive agreement within the next 30 days. This includes completing due diligence, securing internal approvals, and advancing toward implementation. In parallel, both parties will work to identify further opportunities for collaboration, potentially including joint ventures, expanded R&D initiatives, and integrated go-to-market strategies [2].

The partnership is strategically timed to leverage the companies' combined investments of millions of dollars in proprietary AI assets and technologies over the last five years. This mutual equity structure is designed to unlock shareholder value by ensuring each company directly benefits from the other's success [2].

Price Actions: IQST stock is trading higher by 2.72% to $8.32 premarket at last check Thursday, while CYCU is up 3% [1].

References:
[1] https://finance.yahoo.com/news/exclusive-iqstel-cycurion-announce-1-123111477.html
[2] https://www.theglobeandmail.com/investing/markets/stocks/CYCU/pressreleases/33960780/iqst-iqstel-and-cycurion-cycu-sign-mou-for-equity-exchange-and-alliance-to-build-a-next-gen-ai-driven-powerhouse-with-half-of-the-stock-to-be-distributed-as-a-dividend-to-shareholders/