- Closed previously announced acquisition of kanepi Group Pty
Ltd, adding C$2.4 million in annual
recurring revenues
- Added 3,423 connected assets totaling 54,770 in Q3 2020
boosted by an increase in activity during the month of
September
- Anticipates October closing of first C$3 million in pull forward of deferred contract
revenues
- Expects additional early contract cash collections to grow
quarterly, aligned with multi-year total contract values
VANCOUVER, BC, Oct. 13, 2020 /CNW/ - mCloud Technologies
Corp. (TSXV: MCLD) (OTCQB: MCLDF) ("mCloud" or the
"Company"), a leading provider of asset management solutions
combining IoT, cloud computing, and artificial intelligence ("AI"),
today announced it had closed its acquisition of kanepi Group Pty
Ltd ("kanepi"), an information, visualization, and analytics
software technology company headquartered in Perth, Australia, with a development center in
Singapore. The Company originally
announced the acquisition of kanepi on June
25, 2020.
As consideration for the acquisition of kanepi, the Company paid
to the sellers of kanepi an aggregate cash consideration of
AUD$5,000,000 and issued 2,669,090 common shares of the Company as
agreed on June 25, 2020, subject to
compliance with the policies of the TSX Venture Exchange ("TSX-V").
Shares are subject to a 30-month lock-up, with 25 percent of the
shares released from the lock-up on the 12, 18, 24, and 30-month
anniversaries of the closing date.
In addition, subject to kanepi earning AUD$10,000,000 of revenue
during the 12-month period following closing, or AUD$14,000,000 of
revenue during the 24-month period following closing, or kanepi
meeting certain customer acquisition targets during such periods,
the Company may make two additional payments to the sellers of
AUD$1,000,000 each (the "Earn-out Payments"). If earned, 50 percent
of each Earn-out Payment will be made in cash, with the remainder
satisfied by the issuance of common shares based on a price per
share equal to the volume weighted average trading price of the
common shares on the TSX-V for the 15 trading days immediately
prior to the date on which the applicable earn-out condition is
satisfied.
mCloud adds 3,423 connected assets in Q3 2020
mCloud also announced today it had added 3,423 connected assets
to its AssetCare™️ portfolio and grown its total count to 54,770 in
the third quarter ended September 30,
2020 ("Q3 2020"), showing an approximate 42 percent increase
in assets under management since Q3 2019. Despite pandemic
restrictions, the Company exceeded the 2,675 assets it added in Q2
2020.
This was due in part to a pick-up in activity in mid-September,
a sign of customers resuming operations. The Company saw a record
increase in requests for commercial proposals from its Connected
Building segment, which were primarily driven by the indoor air
quality solution mCloud originally announced in May 2020 to help businesses return to work.
The Company spotlighted the AssetCare solution and its ability
to meet new stringent air quality standards being implemented by
health and safety authorities during mCloud's Connect user
conference in September with a panel including Dr. Stephanie Taylor from the ASHRAE Epidemic Task
Force, Dr. Mark Ereth from the Mayo
Clinic, and John Macomber from
Harvard University and the co-author of
"Healthy Buildings: How Indoor Spaces Drive Performance and
Productivity."
mCloud and its customers have established terms to "pull
forward" capital from multi-year contracts. mCloud's AssetCare
contracts are typically based on a term of three years or
more. The Company expects to collect the first approximately
C$3 million from contracts in
October.
"As our anticipated Total Contract Values, or TCV, grows with
every customer we connect, this common, early-phase operating
practice for SaaS-based companies will accelerate mCloud's growth,"
noted Russ McMeekin, mCloud
President and CEO. "As businesses rebuild to be successful in this
new reality requiring digital and remote technologies, mCloud is
ready to help customers thrive with the technology and capital we
have available."
Russ McMeekin and kanepi Managing
Director Tim Haywood recently
discussed the benefits and synergies already underway resulting
from the combination of the two companies. See the video on
mCloud's video channel at
https://www.mcloudcorp.com/blog/qa/mcloud-kanepi-interview.
About mCloud Technologies Corp.
mCloud is creating a more efficient future with the use of AI
and analytics, curbing energy waste, maximizing energy production,
and getting the most out of critical energy infrastructure. Through
mCloud's AI-powered AssetCare™ platform, mCloud offers complete
asset management solutions in five distinct segments: commercial
buildings, renewable energy, healthcare, heavy industry, and
connected workers. IoT sensors bring data from connected assets
into the cloud, where AI and analytics are applied to maximize
their performance.
Headquartered in Vancouver,
Canada with offices in twelve locations worldwide, the
mCloud family includes an ecosystem of operating subsidiaries that
deliver high-performance IoT, AI, 3D, and mobile capabilities to
customers, all integrated into AssetCare. With over 100 blue-chip
customers and more than 54,000 assets connected in thousands of
locations worldwide, mCloud is changing the way energy assets are
managed.
mCloud's common shares trade on the TSX Venture Exchange under
the symbol MCLD and on the OTCQB under the symbol MCLDF. mCloud's
convertible debentures trade on the TSX Venture Exchange under the
symbol MCLD.DB. For more information, visit www.mcloudcorp.com.
Forward-Looking Information and Statements
This press release contains certain "forward-looking
information" within the meaning of applicable Canadian securities
legislation and may also contain statements that may constitute
"forward-looking statements" within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking information and forward-looking
statements are not representative of historical facts or
information or current condition, but instead represent only the
Company's beliefs regarding future events, plans or objectives,
many of which, by their nature, are inherently uncertain and
outside of the Company's control. Generally, such forward-looking
information or forward-looking statements can be identified by the
use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or may contain statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "will
continue", "will occur" or "will be achieved". The forward-looking
information contained herein may include information related to the
pull forward of deferred contract revenues and additional cash
collections from customer contracts.
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.
An investment in securities of the Company is speculative and
subject to several risks as discussed under the heading "Risk
Factors" on pages 29 to 46 of the Company's filing statement dated
October 5, 2017. Although the Company
has attempted to identify important factors that could cause actual
results to differ materially from those contained in the
forward-looking information and forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended.
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 mCloud Technologies Corp.