IQSTEL and Cycurion modify share distribution plan, retain cross holdings

IQSTEL Inc. (NASDAQ: IQST) and Cycurion Inc. (NASDAQ: CYCU) announced they will distribute approximately $500,000 worth of their own shares to respective shareholders as dividends, rather than distributing cross-held shares as originally planned in September.

The companies will maintain their full $1,000,000 cross-ownership positions. The original plan announced September 3, 2025, called for each company to distribute $500,000 worth of the other company's shares to its shareholders.

The updated approach eliminates regulatory filing requirements associated with redistributing cross-held shares while preserving the strategic alliance structure, according to the companies.

Cycurion CEO Kevin Kelly stated the decision "eliminates unnecessary regulatory filings, streamlines the process for shareholders, and preserves the strength of our strategic alliance." IQSTEL CEO Leandro Iglesias said retaining the cross-holdings demonstrates "a deeper level of trust and alignment."

The companies are developing cybersecurity technologies, artificial intelligence threat intelligence applications, and identity-driven security solutions for telecom operators, financial institutions, and enterprise clients across more than 20 countries.

Both companies expect to provide partnership updates in the first and second quarters of 2026 as joint products enter the market. The original cross-shareholding swap is expected to proceed next year once shares meet seasoning requirements.

IQSTEL operates in 21 countries with 100 employees and forecasts $340 million in revenue for fiscal year 2025. Cycurion, based in McLean, Virginia, provides cybersecurity solutions and artificial intelligence services through its subsidiaries Axum Technologies LLC, Cloudburst Security LLC, and Cycurion Innovation Inc.

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