Leading asset management solutions provider Universal mCloud Corp. (TSXV:MCLD) (OTCQB:MCLDF) announced the closing of its convertible debenture financing on Thursday, which resulted in gross proceeds of $23,492,800 CAD.
This offering was initially set for $10 million CAD when it was announced at the end of May; however, the company bumped it up to $23 million CAD after facing overwhelming demand from interested parties.
Universal mCloud President CEO Russ McMeekin believes the company has all of the key elements it needs to become a world leader in AI-powered asset management and it’s evident by the success of this financing that investors believe it too.
“The positive response to this Offering is validation that investors see the trajectory and pathway to revenue growth we are on,” McMeekin said. “The proceeds raised will allow us to take the necessary steps to continue expanding our business and introduce our leading AssetCare™️ platform to new customers and segments across the globe.”
mCloud will be using the proceeds to satisfy outstanding cash obligations in connection with its acquisition of Flow Capital Corp’s royalty interest in Agnity Global along with its proposed acquisition of CSA Inc. It will also help fund ongoing working capital requirements and the company’s proposed expansion, including international operations.
Becoming a Leader in AI-Powered Asset Management
The news of Universal mCloud’s $23 million financings came out the same time the company announced the completion of its acquisition of Fulcrum Automation Technologies and Autopro Automation Consultants.
The deal will not only solidify the company’s presence in the oil and gas industry, but it will also add approximately $35 million CAD in revenue and $5.5 million CAD in EBITDA on a trailing twelve-month basis.
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“We are excited to welcome the Autopro team to the mCloud family as we take AssetCare™ to oil and gas customers all over the world,” McMeekin said. “With Autopro’s deep domain expertise and reach in industrial process automation, our integrated portfolio of IoT, AI, 3D, and mobile capabilities will let us connect field assets at every stage of production and refinement.”
The acquisition of Autopro, in particular, will provide mCloud with an exceptional team of experts and a strong customer base that will support the development of AI-powered asset management solutions tailored to the oil and gas industry.
What’s more, the company has entered into a consulting agreement with Fulcrum International Holdings Limited to gain ongoing corporate consulting and advisory services.
Universal mCloud Stock Remains Undervalued
Despite all of its progress, Universal mCloud’s stock price has remained relatively low, signaling that it may be significantly undervalued. By end of day Friday, the company’s share price was sitting at $0.37, down 2.63%.
This is particularly surprising if you consider that an analyst from Echelon Wealth Partners recently offered the company a “speculative buy” rating and a price target of $1.20 CAD, which is well above its current level. The analyst was particularly impressed with Universal mCloud’s transformational acquisitions in 2018 and this year so far, which include Agnity, NGRAIN, CSA Inc.and now Autopro and Fulcrum Automation Technologies.
It will be interesting to see when investors catch on to this company’s bright future and whether the stock sees some movement in the coming weeks.
Featured Image: Pixabay
