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Universal mCloud Corp wins approval from TSX Venture Exchange for Agnity royalty deal

Last updated: 09:48 17 Jan 2019 EST, First published: 09:20 17 Jan 2019 EST

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The Agnity deal offers a foundation to allow for Universal mCloud's expansion into Europe's telecom arena

Universal mCloud Corp (CVE:MCLD) (OTCQB-MCLDF) has gotten the green light from the TSX Venture Exchange for its purchase of a royalty agreement with Agnity Global, its technology partner.

The IoT and cloud solutions specialist signed a binding agreement last June to purchase 100% of Flow Capital’s (CVE:FW) royalty agreement with Agnity, a specialist in 4G and 5G mobile server technology. The deal offers a foundation to allow for Universal mCloud’s expansion into Europe’s telecom arena.

READ: Universal mCloud taps Doug Garnhart as new CFO

As part of the deal, mCloud will also receive a loan from Flow in the amount of US$2 million for a term of 12 months, under which mCloud will make interest payments of US$41,667 per month until the loan is repaid.

The interest payments under the loan are expected to be offset by the royalty collected by mCloud from Agnity of no less than US$41,667 per month (based on a monthly royalty rate equal to between 1% and 4% of Agnity’s gross revenue).

"The Agnity acquisition creates strong synergies for mCloud and enables us to accelerate AssetCare's expansion and entry into new markets, including Europe," said Russ McMeekin, CEO of mCloud in a statement.

Company issues update

Universal mCloud is also pursuing key opportunities in Europe’s wind turbine market. In December of 2017, mCloud acquired joint technology rights for the Norwin 225kW wind turbine in an all-equity deal. Norwin’s intellectual property for wind turbines now forms the basis of mCloud’s AssetCare Wind Analytics, which have been licensed in over 600 installations around the world.

In both the UK and Europe, feed-in tariff rates for wind triple or quadruple the US or Canada’s, creating high returns for end owners and a strong market for wind energy. Universal mCloud’s  Norwin-powered products are being welcomed across Europe and the company expects to secure AssetCare wind contracts in early 2019.

“[We] are now off to the races introducing AssetCare wind in the UK and Europe,” added McMeekin.

In keeping with a previous agreement struck with the founder of Norwin, Universal mCloud’s board has approved the settlement of up to €11,000 of debt through the issuance of shares. Up to 58,960 shares of Universal mCloud will be offered at a price of C$0.29 per share to certain creditors. The shares will be subject to a four-month hold period, which will expire on the date that is four months and one day from the date of issue. The deal is also subject to the approval of the TSX Venture Exchange

Headquartered in Vancouver, Universal mCloud specializes in using advances in artificial intelligence and analytics to maximize the performance of energy infrastructures such as HVAC (heating, ventilation and air conditioning) units in commercial buildings, wind turbines and distribution transformers.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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