IQSTEL and Cycurion complete $1 million stock exchange agreement

IQSTEL Inc. (NASDAQ: IQST) and Cycurion Inc. (NASDAQ: CYCU) completed a $1 million stock exchange agreement, with each company issuing $1 million worth of common stock to the other.

Under the agreement terms, the number of shares will be calculated by dividing $1 million by the lower of either the Nasdaq closing price on September 2, 2025, or the average closing price over the five trading days preceding that date.

Each company plans to distribute up to 50% of the received shares as dividends to their respective shareholders. IQSTEL shareholders will receive Cycurion shares, while Cycurion shareholders will receive IQSTEL shares. The companies stated that short sellers will not be entitled to the dividend distribution.

The dividend record date will be announced after regulatory approvals are obtained. Both companies indicated they will complete necessary regulatory steps before the dividend distribution.

"This transaction is transformative for both companies," said Leandro Iglesias, CEO of IQSTEL. "By delivering immediate value through the planned dividend distribution and aligning our equity structures, we are setting a new standard for collaboration in AI-driven cybersecurity and connectivity."

L. Kevin Kelly, CEO of Cycurion, stated: "Finalizing this stock exchange unlocks the next phase of our collaboration. As equity partners, our strengths in U.S. government markets and global telecom will create powerful synergies for innovation and growth."

The companies reported having a combined shareholder base of over 30,000 shareholders. IQSTEL operates telecommunications and fintech services globally, while Cycurion focuses on cybersecurity solutions for government and corporate clients.

The agreement aims to enable cross-selling opportunities, with IQSTEL offering Cycurion's cybersecurity products to its telecommunications clients worldwide, while Cycurion gains access to IQSTEL's fintech and AI offerings.

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