viewmCloud Technologies Corp

Universal mCloud Corp finalizes US$2 million repayment following Agility acquisition

The January deal saw mCloud acquire 100% of Flow Capital’s royalty agreement with Agnity, a specialist in 4G and 5G mobile server technology

The US$2 million loan was repaid in just over six months

Universal mCloud Corp (CVE:MCLD) (OTCMKTS:MCLDF) settled a payment of US$2 million to Flow Capital Corp (CVE:FW), closing the book on a January 2019 deal to acquire Agnity Global.

The deal saw mCloud acquire 100% of Flow Capital’s royalty agreement with Agnity, a specialist in 4G and 5G mobile server technology.

As part of the transaction, mCloud received a loan from Flow in the amount of US$2 million for a term of 12 months. Flow Capital has received the repayment of the USD $2,000,000 senior secured note and 1.5 million shares of mCloud, the company reported on Monday.

READ: Universal mCloud implements AssetCare technology at oil and gas operations in Alberta

Total cash returns from the Agnity and mCloud agreements exceed US$3,900,000 on a USD $2,750,000 investment, according to a release.

Flow Capital will earn another 3.5 million shares in addition to the 1.5 million mCloud shares received if certain milestones are met by January 2025.

"With the repayment of this loan to Flow, mCloud will be able to focus on executing our growth strategy of connecting assets across all our lines of business," said Russ McMeekin, mCloud's CEO. "We look forward to providing investors with an update of our activities during our Q2 earnings call on August 15, 2019."

Calling the deal a “win-win” for Flow and mCloud, Flow’s chief investment officer Robb McLarty said that the company generated a cash return of 1.43 times its initial investment and significant upside potential through mCloud shares.

“We are pleased to remain investors and congratulate mCloud for its recent fundraise and acquisition of Autopro,” McLarty said in a statement.

Universal mCloud’s shares opened Tuesday at C$0.41 in Toronto and nudged up 1.3% at US$0.32 on OTC markets.

--Updated with CEO quotes and share price--

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

Quick facts: mCloud Technologies Corp

Price: 3 CAD

Market: TSX-V
Market Cap: $74.46 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of mCloud Technologies Corp named herein, including the promotion by the Company of mCloud Technologies Corp in any Content on the Site, the...


mCloud Technologies seeing strong interest in Connected Workers Solution in...

mCloud Technologies (CVE: MCLD-OTCQB: MCLDF) President, Connected Solutions and Chief Marketing Officer Barry Po joined Steve Darling from Proactive Vancouver with news the company is seeing a big increase in demand for their Connected Workers Solutions. Po telling Proactive how their...

on 14/7/20

2 min read