Universal mCloud Upsizes Financing Offer to $23 Million

Universal mCloud

UPDATE June 24, 2019:

See end of post for update on this story.

Original Story:

Universal mCloud Corp. (TSXV:MCLD) (OTCQB:MCLDF) continues to strengthen its position as a leading provider of AI-powered asset management solutions and it’s evident that investors are happy with the company’s strategy.

Not only did mCloud gain conditional approval from the TSX Venture Exchange to acquire Fulcrum and Autopro this week, but it also increased the aggregate principal amount of a convertible debenture offering from $10 million CAD to $23 million CAD due to overwhelming demand.

“We are very pleased by the attention this private placement has received since it was originally announced,” said Universal mCloud President and CEO Russ McMeekin. “We have all of the key elements needed to be the world’s foremost leader in AI-powered asset management and are delighted that investors are responding accordingly.”

At the same time, the company announced amendments to the royalty agreement with Agnity Global, which will now include an option for mCloud to acquire Agnity via a combination of cash and shares based on certain revenue metrics.

It is clear that investors are happy with the direction Universal mCloud is going, and it’s easy to see why.

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Universal mCloud’s Strategic M&A Activity

Universal mCloud’s transformational acquisitions have set the company up for some major growth in all three segments of its business, which include smart buildings, wind energy, and oil and gas.

In March 2018, mCloud acquired NGRAIN in order to bring revolutionary artificial intelligence and 3D/augmented reality technology to its AssetCare™ Cloud solution. This transaction alone added 10 patents in applied 3D technology to the company’s portfolio.

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Universal mCloud also made a bid for CSA Inc. in 2018 in order to provide it with a complete 3D solution in direct support of critical assets. CSA has pioneered the use of 3D technology since the business was founded in 1976.

“The CSA software suite enables mCloud to develop unique 3D solutions that fit perfectly into our AssetCareTM strategy. It will be put to immediate use in fulfilling our vision of our AssetCareTM Wind solution,” said McMeekin.

Universal mCloud moved to acquire Agnity Global in 2018 as well via a royalty agreement that would solidify its position as the leading provider of IoT asset management solutions for smart buildings, wind, and power utility providers.

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New Deals Add Even More Upside to mCloud

Prior to making a move to acquire Agnity, mCloud already had a long-standing relationship with the company as technology partners in which Agnity provided mobile apps that strengthened the AssetCare platform.

The acquisition will deepen that existing relationship and enable Universal mCloud to directly benefit from Agnity’s talented R&D teams, accelerating its product development agenda and will allow the company to offer enhanced IoT capabilities to its customers, such as blockchain-based mobile security.

Now with approval to acquire Fulcrum and Autopro, mCloud will also be able to expand the footprint for its AssetCare™ platform and enhance its ability to grow revenues in the oil and gas sector globally.

Universal mCloud’s strategic acquisitions have even caught the eye of an analyst from Echelon Wealth Partners, who has maintained a “speculative buy” rating for the company and raised its 12-month DCF-based price target from $0.80 CAD to $1.20 CAD.

Investors will want to keep an eye on the finalization of these two deals and what else Universal mCloud will do to solidify its position as the leading provider of AI-powered asset management solutions.

Universal mCloud’s share price has remained much the same for the last five days, hovering around $0.36 CAD on the TSXV and $0.27 USD on the OTC.

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UPDATE:

Universal mCloud Corp. (TSXV:MCLD) (OTCQB:MCLDF) announced Monday that it has closed the first tranche of its private placement offering for the gross proceeds of $17.3 million CAD.

The Vancouver-based AI and IoT-powered asset management company will be using the net proceeds to satisfy all outstanding cash obligations for the acquisition of Flow Capital Corp.’s royalty interest in Agnity Global and for the proposed acquisition of CSA Inc.

Universal mCloud will also use the money to fund ongoing working capital requirements and the expansion of international operations.

“As we close the first tranche of this Offering, we are pleased to have the support of investors who have shown such a strong interest in Universal mCloud,” said Russ McMeekin, mCloud President, and CEO. “We are very excited about the prospects for growth we have for the business going forward.”

Universal mCloud Upsizes Offering

Universal mCloud was initially seeking $10 million CAD in financing in May. However, the company more than doubled the offering in June to $23 million CAD after receiving overwhelming demand from investors.

“We have all of the key elements needed to be the world’s foremost leader in AI-powered asset management and are delighted that investors are responding accordingly,” McMeekin said in the press release.

The convertible, unsecured debentures are $100 CAD each and carry an annual interest rate of 10%. The company expects to close the final tranche on or before June 28, 2019.

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