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
- mCloud to pay Flow Capital $2M
USD in cash and 1.5M in mCloud
shares at close, and another 3.5M
shares if share-based performance milestones are met
- Through consolidation, mCloud's Combined Annualized Revenues
total approximately $12.5M CDN with
break-even adjusted EBITDA (proforma, TTM)
- Further expands mCloud's AssetCare™ platform to support mobile
asset workers via next-gen 5G wireless and secure IoT data capture
capabilities
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.
Universal mCloud Corp. is
headquartered in Vancouver, BC
with technology and operations centers in San Francisco, CA and Bristol, PA. mCloud is an IoT connected asset
care cloud solution company utilizing connected IoT devices,
leading deep energy analytics, secure mobile and 3D technologies
that rally all asset stakeholders around an Asset-Circle-of-Care™,
providing complete real-time and historical data coupled with
guidance and advice based on deep analytics and diagnostics
resulting in optimal performance and care of critical equipment.
It's all about the asset. The powerful and secure AssetCare™
environment is accessible everywhere, 24/7 through standard mobile
devices, ruggedized headsets, and web browsers. For more
information, visit www.mCloudCorp.com.
About Flow Capital
Based in Toronto, Flow Capital Corp. is a diversified
alternative asset investor and advisor, operating two divisions: an
investment operation providing revenue-linked capital to emerging
growth businesses, and an institutional advisory sales platform
providing pension funds, charities and endowment clients with
access to leading institutional money managers from around the
world. Learn more at www.flowcap.com
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SOURCE Universal-mCloud Corp