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IQST - IQSTEL and Cycurion (CYCU) Sign MOU for Equity Exchange and Alliance to Build a Next-Gen AI-Driven Powerhouse with Half of the Stock to be Distributed as a Dividend to Shareholders

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IQSTEL (NASDAQ: IQST) and Cycurion (NASDAQ: CYCU) have signed a Memorandum of Understanding (MOU) for a strategic $1 million stock exchange, with plans to distribute 50% of exchanged shares as dividends to shareholders. The partnership aims to create an AI-driven cybersecurity powerhouse for the telecommunications industry.

The stock exchange will be based on Nasdaq closing prices, benefiting a combined shareholder base of approximately 30,000 investors. Both companies will merge their AI R&D capabilities, with IQSTEL contributing its AI services through IQSTEL Intelligence division and Cycurion bringing its cybersecurity expertise. The alliance leverages Cycurion's strong U.S. government presence and IQSTEL's network of 600+ global telecom operators.

The companies expect to execute the definitive agreement within 30 days, with the dividend registration date to be announced separately.

IQSTEL (NASDAQ: IQST) e Cycurion (NASDAQ: CYCU) hanno firmato un Memorandum d'Intesa (MOU) per uno scambio azionario strategico del valore di 1 milione di dollari, con l'intenzione di distribuire il 50% delle azioni scambiate come dividendi agli azionisti. La partnership mira a creare un polo di cybersecurity basato sull'intelligenza artificiale per il settore delle telecomunicazioni.

Lo scambio azionario si baserà sui prezzi di chiusura del Nasdaq, a vantaggio di una base combinata di circa 30.000 investitori. Entrambe le aziende uniranno le loro capacità di ricerca e sviluppo nell'IA, con IQSTEL che fornirà i suoi servizi AI tramite la divisione IQSTEL Intelligence e Cycurion che apporterà la sua esperienza in cybersecurity. L'alleanza sfrutta la forte presenza di Cycurion nel governo statunitense e la rete di IQSTEL composta da oltre 600 operatori globali di telecomunicazioni.

Le società prevedono di finalizzare l'accordo definitivo entro 30 giorni, con la data di registrazione dei dividendi che sarà comunicata separatamente.

IQSTEL (NASDAQ: IQST) y Cycurion (NASDAQ: CYCU) han firmado un Memorando de Entendimiento (MOU) para un intercambio estratégico de acciones por valor de 1 millón de dólares, con planes de distribuir el 50% de las acciones intercambiadas como dividendos a los accionistas. La asociación tiene como objetivo crear una potencia en ciberseguridad impulsada por IA para la industria de telecomunicaciones.

El intercambio de acciones se basará en los precios de cierre del Nasdaq, beneficiando a una base combinada de aproximadamente 30,000 inversores. Ambas compañías fusionarán sus capacidades de I+D en IA, con IQSTEL aportando sus servicios de IA a través de la división IQSTEL Intelligence y Cycurion aportando su experiencia en ciberseguridad. La alianza aprovecha la fuerte presencia de Cycurion en el gobierno de EE.UU. y la red de IQSTEL con más de 600 operadores globales de telecomunicaciones.

Se espera que las empresas ejecuten el acuerdo definitivo dentro de 30 días, con la fecha de registro de dividendos que se anunciará por separado.

IQSTEL (NASDAQ: IQST)Cycurion (NASDAQ: CYCU)은 전략적 100만 달러 규모의 주식 교환을 위한 양해각서(MOU)를 체결했으며, 교환된 주식의 50%를 주주들에게 배당금으로 분배할 계획입니다. 이번 파트너십은 통신 산업을 위한 AI 기반 사이버보안 강자를 만드는 것을 목표로 합니다.

주식 교환은 나스닥 종가를 기준으로 하며, 약 30,000명의 투자자로 구성된 통합 주주 기반에 혜택을 제공합니다. 양사는 AI 연구개발 역량을 통합할 예정이며, IQSTEL은 IQSTEL Intelligence 부서를 통해 AI 서비스를 제공하고 Cycurion은 사이버보안 전문 지식을 제공합니다. 이 제휴는 Cycurion의 강력한 미국 정부 네트워크와 IQSTEL의 600개 이상의 글로벌 통신 사업자 네트워크를 활용합니다.

양사는 30일 내에 최종 계약을 체결할 예정이며, 배당금 등록일은 별도로 공지할 예정입니다.

IQSTEL (NASDAQ : IQST) et Cycurion (NASDAQ : CYCU) ont signé un protocole d'accord (MOU) pour un échange d'actions stratégique d'une valeur de 1 million de dollars, avec l'intention de distribuer 50 % des actions échangées sous forme de dividendes aux actionnaires. Ce partenariat vise à créer un leader en cybersécurité piloté par l'intelligence artificielle pour l'industrie des télécommunications.

L'échange d'actions sera basé sur les cours de clôture du Nasdaq, bénéficiant à une base combinée d'environ 30 000 investisseurs. Les deux entreprises vont fusionner leurs capacités de R&D en IA, IQSTEL apportant ses services d'IA via sa division IQSTEL Intelligence et Cycurion son expertise en cybersécurité. L'alliance tire parti de la forte présence de Cycurion auprès du gouvernement américain et du réseau de plus de 600 opérateurs télécoms mondiaux d'IQSTEL.

Les sociétés prévoient de finaliser l'accord définitif dans un délai de 30 jours, la date d'enregistrement des dividendes sera annoncée ultérieurement.

IQSTEL (NASDAQ: IQST) und Cycurion (NASDAQ: CYCU) haben eine Absichtserklärung (MOU) für einen strategischen Aktientausch im Wert von 1 Million US-Dollar unterzeichnet, mit Plänen, 50 % der getauschten Aktien als Dividenden an die Aktionäre auszuschütten. Die Partnerschaft zielt darauf ab, ein KI-gesteuertes Cybersecurity-Unternehmen für die Telekommunikationsbranche zu schaffen.

Der Aktientausch basiert auf den Schlusskursen der Nasdaq und kommt einer kombinierten Aktionärsbasis von etwa 30.000 Investoren zugute. Beide Unternehmen werden ihre KI-Forschungs- und Entwicklungskapazitäten zusammenlegen, wobei IQSTEL seine KI-Dienstleistungen über die IQSTEL Intelligence-Abteilung einbringt und Cycurion seine Cybersecurity-Expertise beisteuert. Die Allianz nutzt Cycurions starke Präsenz in der US-Regierung und IQSTELs Netzwerk von über 600 globalen Telekommunikationsanbietern.

Die Unternehmen planen, die endgültige Vereinbarung innerhalb von 30 Tagen abzuschließen, wobei das Datum für die Dividendeneintragung separat bekannt gegeben wird.

Positive
  • Strategic $1 million stock exchange with 50% distribution as dividends to shareholders
  • Combined weekly stock liquidity in the millions of U.S. dollars
  • Access to 600+ telecom operators worldwide through IQSTEL's network
  • Merger of complementary AI R&D capabilities and technologies
  • Cross-selling opportunities in government, telecom, and enterprise sectors
Negative
  • 60-day exploratory period and pending regulatory approvals required
  • Final share exchange ratio subject to market price fluctuations
  • Integration of different AI technologies may present technical challenges

Insights

IQSTEL and Cycurion's $1M stock swap creates cross-selling opportunities and dividend benefits, though small relative to company market values.

This MOU between IQSTEL and Cycurion represents an interesting strategic alignment through a $1 million stock exchange, with half of the acquired shares to be distributed as dividends to existing shareholders. While the initial transaction amount is relatively modest, the strategic implications are more significant than the dollar value suggests.

The structure of this deal is particularly noteworthy. Rather than a traditional acquisition, the companies are creating what they call a "sibling company" relationship where each becomes an equity stakeholder in the other. This gives both companies skin in the game regarding each other's success while maintaining operational independence. The planned distribution of 50% of the exchanged shares as dividends provides an immediate tangible benefit to the ~30,000 shareholders across both companies.

From a business perspective, the complementary strengths create logical synergies - IQSTEL brings global telecom relationships with 600+ operators worldwide, while Cycurion contributes U.S. market presence and government/institutional connections. The cross-selling opportunities this creates could potentially drive revenue growth beyond what either company could achieve independently.

The companies' focus on combining AI capabilities for cybersecurity applications targets a high-growth market segment. By pooling their R&D resources, they may accelerate product development and potentially create more competitive offerings.

Investors should note that while the press release emphasizes future potential, the current transaction represents a relatively small financial commitment. The $1 million stock exchange likely represents a minimal percentage of either company's market capitalization, making this more of a strategic alignment than a transformative financial transaction at this stage.

The strategic alignment between IQSTEL and Cycurion represents a targeted combination of complementary AI technologies in the rapidly evolving cybersecurity space. Each company brings distinct technological assets to this partnership that could potentially create meaningful synergies.

IQSTEL contributes its IQSTEL Intelligence division with two market-ready AI products: Airweb.ai (a multilingual AI communication agent) and IQ2Call.ai (an AI-powered call center solution). These customer-facing AI tools demonstrate practical applications that have already found market validation.

Cycurion brings specialized expertise in AI-based cybersecurity services focused on telecom networks, government infrastructure, and enterprise systems - areas requiring sophisticated threat detection and response capabilities.

The integration of these technologies creates an interesting value proposition: combining conversational AI capabilities with cybersecurity expertise could potentially yield more intuitive security management tools and more responsive threat detection systems. The press release specifically mentions developing a "proprietary, joint AI-driven cybersecurity solution" that leverages both companies' technological strengths.

What makes this partnership technically significant is the focus on telecommunications security - a sector facing growing threats as network infrastructure becomes increasingly critical. With 5G deployment expanding globally and IoT device proliferation accelerating, telecom security represents a substantial market opportunity.

The companies' mention of being "largely insulated from potential disruptions caused by changes in U.S. tariffs" suggests their technologies rely more on intellectual property and software development than hardware components that might be subject to supply chain disruptions or tariff concerns.

Both Companies combined have Invested Millions of Dollars over the last 5 years into Proprietary AI assets and technologies.

NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- IQSTEL Inc. (NASDAQ: IQST) (“IQSTEL”) and Cycurion Inc. (NASDAQ: CYCU) (“Cycurion”) today announced the signing of a Memorandum of Understanding (MOU) to become mutual equity partners following a planned $1 million stock exchange, with half of each company’s exchanged shares to be distributed as a dividend to enhance shareholder value. This milestone marks a significant step in the two companies’ collaboration and sets the stage for creating a powerhouse in AI-driven cybersecurity for the global telecommunications industry.

This transaction is designed to unlock shareholder value, while being strategically timed for both companies as the products and services of IQSTEL and Cycurion are largely insulated from potential disruptions caused by changes in U.S. tariffs and their economic consequences.

The agreement also strengthens the companies’ alliance by integrating complementary market strengths and uniting both organizations’ AI-focused Research and Development departments with a shared mission: to deliver next-generation cybersecurity solutions tailored for telecom industry, government institutions, and enterprise clients worldwide.

The Stock Exchange – Foundation for a Mutual Equity Partnership

Under the MOU, each company will issue $1 million worth of its common stock to the other.

The number of shares will be based on the lower of:

1.   The Nasdaq Official Closing Price on the trading day immediately preceding the signing of the binding agreement; and

2.   The average Nasdaq Official Closing Price over the five (5) trading days immediately preceding the signing of the binding agreement.

Subject to board and regulatory approvals, each company intends to distribute up to 50% of the shares it receives to its existing shareholders as a stock dividend —transforming IQSTEL shareholders into Cycurion shareholders, and vice versa.

This transaction is designed to unlock shareholder value by creating a mutual equity structure that both companies view as a “sibling company” relationship, ensuring each directly benefits from the other’s success. Importantly, both IQST and CYCU are actively traded stocks with weekly liquidity in the millions of U.S. dollars, which is believed to be highly advantageous for the combined ~30,000 shareholders across both companies.

In addition, the stock swap opens the door for powerful cross-selling opportunities: IQSTEL will be able to introduce its Telecom, Fintech, and AI-driven services to Cycurion’s established customer base, while Cycurion will gain access to offer its advanced cybersecurity solutions to some of the largest telecom operators in the world through IQSTEL’s extensive global network.

One Unified AI R&D Mission

Both IQSTEL and Cycurion operate advanced AI research and development teams, each with complementary expertise that makes this collaboration particularly powerful.

IQSTEL has been developing proprietary AI services through its in-house IQSTEL Intelligence division (www.realityborder.com), launching two proprietary products: www.Airweb.ai — a multilingual AI web/phone/messaging agent — and www.IQ2Call.ai — an AI-powered call center agent. Most recently, IQSTEL Intelligence was engaged by ONAR to develop a full suite of AI-driven sales support tools designed to streamline and enhance ONAR’s daily sales operations.

Meanwhile, Cycurion has been working to deliver the next generation of AI-based cybersecurity services, aimed at protecting telecom networks, government infrastructure, and enterprise systems.

Following the stock exchange, the companies except to join forces, pool resources, and align strategic focus to:

  • deliver a proprietary, joint AI-driven cybersecurity solution, integrating IQSTEL’s AI innovations with Cycurion’s cybersecurity expertise.
  • enhance Cycurion’s internal processes and customer support responsiveness using IQSTEL’s advanced AI virtual agents.
  • accelerate innovation cycles and bring cutting-edge, next-generation cybersecurity products to market faster.

With this mutual equity transaction, IQSTEL and Cycurion are set to potentially become a true AI powerhouse — combining complementary strengths in AI innovation and cybersecurity. The market has yet to fully realize the potential value of this collaboration, which positions both companies to capture significant new opportunities in the rapidly evolving AI-driven cybersecurity landscape.

Complementary Market Strengths

The alliance is reinforced by the complementary reach of both companies:

  • Cycurion has a strong presence in the U.S. market and deep relationships within government and institutional sectors.
  • IQSTEL has a global footprint in telecommunications, with established commercial relationships spanning more than 600 telecom operators worldwide.

Together, the companies expect to cross-sell solutions, penetrate new markets, and open revenue streams that neither could fully capture alone.

There is more to come in their Mutual Equity Partnership.

While this stock exchange is a transformative milestone, both companies emphasize that this is just the beginning of their mutual equity partnership. This transaction opens the door to a more intensive relationship in the future. The MOU outlines an initial 60-day exploratory period; however, the companies plan to execute the definitive agreement within the next 30 days — completing due diligence, securing internal approvals, and advancing toward implementation.

In parallel, both parties will work to identify further opportunities for collaboration, potentially including joint ventures, expanded R&D initiatives, and integrated go-to-market strategies designed to accelerate growth and maximize value for their combined shareholder base.

The companies will announce the registration date for the planned dividend in a separate joint communication once the definitive agreement is executed.

Leandro Iglesias, CEO of IQSTEL, stated:

“This mutual equity partnership marks the creation of a powerhouse in AI-driven cybersecurity. By combining our resources, complementary customer bases, and innovation teams, we are setting a new standard for what’s possible. The benefits to our combined 30,000 shareholders are immediate — they will now own part of both companies, and our shared market liquidity makes that ownership all the more valuable.”

L. Kevin Kelly, CEO of Cycurion, commented:

“This is more than a stock swap. It’s the start of a long-term equity partnership that we expect will accelerate innovation and growth for both companies. We are confident that our U.S. and government market strength when combined with IQSTEL’s global telecom presence is a powerful combination that positions us for significant impact.”

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a U.S.-based, publicly traded company specializing in high-growth technology areas, including telecommunications, fintech, AI, and cybersecurity. With a presence in over 21 countries and commercial relationships with more than 600 telecom operators, IQSTEL is on a mission to reach $1 billion in annual revenue by 2027 through strategic acquisitions, organic growth, and high-margin tech solutions.
More info: www.iqstel.com

About Cycurion Inc.

Based in McLean, Virginia, Cycurion (NASDAQ: CYCU) is a forward-thinking provider of IT cybersecurity solutions and AI, committed to delivering secure, reliable, and innovative services to clients worldwide. Specializing in cybersecurity, program management, and business continuity, Cycurion harnesses its AI-enhanced ARx platform and expert team to empower clients and safeguard their operations. Along with its subsidiaries, Axxum Technologies, Cloudburst Security, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients committed to securing the digital future.
More info: www.cycurion.com

Forward-Looking Statements

This press release contains forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the operations and prospective growth of Cycurion’s and IQSTEL’s business. Many factors could cause Cycurion’s and IQSTEL’s actual results, performance, or achievements to be materially different from any future results, performance, or achievements described in this press release.

Forward-looking statements include, but are not limited to, statements that express each company’s intentions, beliefs, expectations, strategies, predictions, or any other information relating to our future activities or other future events or conditions. Words such as "anticipate," "believe," "estimate," "expect," "intend", "could" and similar expressions, as they relate to each company or its respective management, identify forward-looking statements. These statements are based on current expectations, estimates, and projections about each company’s business based partly on assumptions made by management. Important factors that could cause actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: each company’s ability to successfully market its products and services; Each company’s continued ability to pay operating costs and ability to meet demand for its products and services; the amount and nature of competition from other telecom products and services; the effects of changes in the cybersecurity and telecom markets; each company’s ability to successfully develop new products and services; each company’s ability to complete complementary acquisitions and dispositions that benefit each company; each company’s success establishing and maintaining collaborative, strategic alliance agreements with its industry partners, including the equity exchange and the contemplated alliance between each company; each company’s ability to comply with applicable regulations; each company’s ability to secure capital when needed; and the other risks and uncertainties described in each company’s prior filings with the Securities and Exchange Commission.

These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may and are likely to differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release, and IQSTEL and Cycurion undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.

For more information, please visit www.IQSTEL.com.

Investor Contact for Cycurion:
CORE IR
Email: investors@cycurion.com

Media Contact:
Phone: (703) 555-0123
Email: media@cycurion.com

Investor Relations Contact:
IQSTEL Inc.
300 Aragon Avenue, Suite 375, Coral Gables, FL 33134
Email: investors@IQSTEL.com


FAQ

What is the value of the stock exchange between IQSTEL and Cycurion (CYCU)?

The stock exchange is valued at $1 million worth of common stock from each company, with 50% of the exchanged shares to be distributed as dividends to shareholders.

When will IQSTEL and Cycurion (CYCU) complete their stock exchange agreement?

The companies plan to execute the definitive agreement within 30 days, though the MOU outlines an initial 60-day exploratory period.

How many shareholders will benefit from the IQSTEL-Cycurion (CYCU) stock exchange?

The stock exchange will benefit approximately 30,000 combined shareholders across both companies.

What is the strategic benefit of the IQSTEL-Cycurion (CYCU) partnership?

The partnership combines IQSTEL's global telecom presence and AI services with Cycurion's cybersecurity expertise and U.S. government relationships to create an AI-driven cybersecurity powerhouse.

How will the stock exchange price be determined for IQSTEL and Cycurion (CYCU)?

The share price will be based on the lower of the Nasdaq Official Closing Price on the day before signing or the average closing price over the previous 5 trading days.
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