|Delayed - 11/27 03:59:43 pm|
mCloud Technologies : Announces Closing of kanepi Acquisition
|10/13/2020 | 07:01am|
- Closed previously announced acquisition of kanepi
Group Pty Ltd, adding C$2.4 millionin annual recurring revenues
- Added 3,423 connected assets totaling 54,770 in Q3 2020 boosted by an increase in activity during the month of September
- Anticipates October closing of first
C$3 millionin pull forward of deferred contract revenues
- Expects additional early contract cash collections to grow quarterly, aligned with multi-year total contract values
As consideration for the acquisition of kanepi, the Company paid to the sellers of kanepi an aggregate cash consideration of AUD$5,000,000 and issued 2,669,090 common shares of the Company as agreed on
In addition, subject to kanepi earning AUD$10,000,000 of revenue during the 12-month period following closing, or AUD$14,000,000 of revenue during the 24-month period following closing, or kanepi meeting certain customer acquisition targets during such periods, the Company may make two additional payments to the sellers of AUD$1,000,000 each (the "Earn-out Payments"). If earned, 50 percent of each Earn-out Payment will be made in cash, with the remainder satisfied by the issuance of common shares based on a price per share equal to the volume weighted average trading price of the common shares on the TSX-V for the 15 trading days immediately prior to the date on which the applicable earn-out condition is satisfied.
mCloud adds 3,423 connected assets in Q3 2020
mCloud also announced today it had added 3,423 connected assets to its AssetCare™️ portfolio and grown its total count to 54,770 in the third quarter ended
This was due in part to a pick-up in activity in mid-September, a sign of customers resuming operations. The Company saw a record increase in requests for commercial proposals from its
The Company spotlighted the AssetCare solution and its ability to meet new stringent air quality standards being implemented by health and safety authorities during mCloud's Connect user conference in September with a panel including Dr.
mCloud and its customers have established terms to "pull forward" capital from multi-year contracts. mCloud's AssetCare contracts are typically based on a term of three years or more. The Company expects to collect the first approximately
"As our anticipated Total Contract Values, or TCV, grows with every customer we connect, this common, early-phase operating practice for SaaS-based companies will accelerate mCloud's growth," noted
mCloud is creating a more efficient future with the use of AI and analytics, curbing energy waste, maximizing energy production, and getting the most out of critical energy infrastructure. Through mCloud's AI-powered AssetCare™ platform, mCloud offers complete asset management solutions in five distinct segments: commercial buildings, renewable energy, healthcare, heavy industry, and connected workers. IoT sensors bring data from connected assets into the cloud, where AI and analytics are applied to maximize their performance.
mCloud's common shares trade on the
Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to several risks as discussed under the heading "Risk Factors" on pages 29 to 46 of the Company's filing statement dated
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
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