Universal mCloud Announces Binding Agreement to Acquire 100% Ownership of Agnity Global Royalty Agreement from Flow Capital
Universal mCloud Announces Binding Agreement to Acquire 100% Ownership of Agnity Global Royalty Agreement from Flow Capital |
[21-June-2018] |
Acquisition will increase mCloud's proforma combined revenues on TTM basis to ~$12.5M CDN and offer customers next-gen 5G wireless capabilities enabling industrial IoT-based asset management Highlights
VANCOUVER, June 21, 2018 /CNW/ - Universal mCloud Corp (TSX-V: MCLD) (OTCQB: MCLDF) ("mCloud" or the "Company"), a leading provider of Artificial Intelligence and Analytics solutions for IoT-connected asset care, today announced that it has signed a binding agreement to purchase 100% of Flow Capital's (TSX-V: FW) Royalty Agreement with Agnity Global ("Agnity"), an industry leader in LTE/4G/5G mobile IoT applications. This transaction extends mCloud's capacity to reach all parts of North America, Asia, and Europe and solidifies the Company's position as the eminent provider of IoT asset management solutions for smart buildings, wind, and power utility providers. mCloud plans to consolidate Agnity's results in the Company's financial statements due to the nature of the Royalty Agreement, the relative contribution of total cash flows, and the extensive control mCloud retains over Agnity's governance and operations. mCloud will work closely with Agnity on many aspects of the business on a frequent basis, including collaborative technology development, strategic business development, and to improve efficiencies in mutual operations. Agnity's most recent fiscal year had revenues of greater than $6M USD and royalty cash flows of approximately $500K USD. Prior to this transaction, mCloud and Agnity maintained a long-standing relationship as technology partners, with Agnity providing mobile apps that bolstered mCloud's AssetCare platform. This agreement further deepens this relationship, enabling mCloud to directly benefit from Agnity's highly talented R&D teams in Silicon Valley and India, thus accelerating the Company's product development agenda. Over time, mCloud and Agnity will look to achieve further integration in technical, sales, and general operations. "mCloud's AssetCare platform is now connected to over 15,000 assets around the world and Agnity's mobile capabilities are already being applied to our AI and Analytics offerings in the field, empowering field workers to achieve successful outcomes," said Russel McMeekin, mCloud President and CEO. "This transaction will allow mCloud to offer enhanced IoT capabilities to our customers, such as blockchain-based mobile security, while simultaneously doubling our high-margin recurring revenue base and positioning mCloud for profitability in the near term." The Binding Agreement is subject to customary regulatory approval and a break up fee. About Universal mCloud Corp. Forward-Looking Information and Statements By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE Universal-mCloud Corp | ||
Company Codes: TorontoVE:MCLD, OTC-PINK:MCLDF, OTC-QB:MCLDF |
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