IQSTEL Inc. and Cycurion Inc. announced a Memorandum of Understanding to become equity partners after a planned $1 million stock exchange, with half of each company’s shares to be distributed as a dividend. This paves the way for a powerhouse in AI-driven cybersecurity for the telecommunications industry.

Each company will issue $1 million worth of common stock to the other based on the Nasdaq Official Closing Price, with up to 50% of shares to be distributed to existing shareholders as a stock dividend, transforming IQSTEL shareholders into Cycurion shareholders, and vice versa.

The transaction aims to unlock shareholder value by creating a mutual equity structure, fostering a “sibling company” relationship for mutual success. Additionally, the stock swap enables cross-selling opportunities, with IQSTEL introducing services to Cycurion’s customer base, and Cycurion offering cybersecurity solutions to IQSTEL’s telecom partners.

Subject to approvals, the companies plan to finalize the agreement within 30 days, with an initial 60-day exploratory period. They will also explore joint ventures, expanded R&D initiatives, and go-to-market strategies for further collaboration.

IQST stock is up 2.72% to $8.32 premarket, while CYCU is up 3%. This partnership aims to leverage each company’s strengths to create a robust AI-driven cybersecurity platform and unlock shareholder value through mutual equity exchange and cross-selling opportunities.

Read more at Yahoo Finance: IQSTEL And Cycurion Announce $1 Million Stock Swap With Shareholder Dividends And AI Cybersecurity Alliance