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IQSTEL and Cycurion Execute $1 Million Stock Exchange, Announce Dividend Distribution and Strategic AI Cybersecurity Alliance

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Cycurion (NASDAQ: CYCU) and IQSTEL (NASDAQ: IQST) have executed a $1 million stock exchange agreement to strengthen their strategic alliance in AI-driven cybersecurity. Each company will issue $1 million worth of common stock to the other, with share prices determined by the lower of the Nasdaq closing price on September 2, 2025, or the 5-day average preceding that date.

Both companies plan to distribute up to 50% of received shares as dividends to their respective shareholders, creating cross-ownership opportunities. The alliance combines IQSTEL's global telecom platform serving 600+ operators with Cycurion's AI cybersecurity expertise in U.S. government markets. The partnership aims to develop advanced AI-driven cybersecurity solutions and facilitate cross-selling opportunities.

Cycurion (NASDAQ: CYCU) e IQSTEL (NASDAQ: IQST) hanno firmato un accordo di scambio azionario da 1 milione di dollari per rafforzare la loro alleanza strategica nella cybersecurity basata sull'IA. Ciascuna società emetterà azioni ordinarie per un valore di 1 milione di dollari a favore dell'altra, con il prezzo per azione determinato al valore più basso tra il prezzo di chiusura Nasdaq del 2 settembre 2025 e la media dei 5 giorni precedenti tale data.

Entrambe le società intendono distribuire fino al 50% delle azioni ricevute come dividendi ai rispettivi azionisti, creando opportunità di partecipazione reciproca. L'alleanza unisce la piattaforma telecom globale di IQSTEL, che serve oltre 600 operatori, con l'expertise di Cycurion nell'IA per la cybersecurity nei mercati governativi statunitensi. La partnership mira a sviluppare soluzioni di cybersecurity avanzate guidate dall'IA e a favorire opportunità di cross-selling.

Cycurion (NASDAQ: CYCU) e IQSTEL (NASDAQ: IQST) han ejecutado un acuerdo de intercambio de acciones por 1 millón de dólares para fortalecer su alianza estratégica en ciberseguridad impulsada por IA. Cada compañía emitirá acciones ordinarias por valor de 1 millón de dólares a la otra, con el precio por acción fijado por el menor valor entre el cierre del Nasdaq del 2 de septiembre de 2025 y el promedio de los 5 días anteriores a esa fecha.

Ambas empresas planean repartir hasta el 50% de las acciones recibidas como dividendos entre sus accionistas, creando oportunidades de participación cruzada. La alianza combina la plataforma telecom global de IQSTEL, que atiende a más de 600 operadores, con la experiencia de Cycurion en ciberseguridad con IA en mercados gubernamentales de EE. UU. La asociación busca desarrollar soluciones avanzadas de ciberseguridad impulsadas por IA y facilitar oportunidades de venta cruzada.

Cycurion (NASDAQ: CYCU)IQSTEL (NASDAQ: IQST)은 AI 기반 사이버보안을 강화하기 위해 100만 달러 규모의 주식 교환 계약을 체결했습니다. 각 회사는 상대 회사에 100만 달러 상당의 보통주를 발행하며, 주당 가격은 2025년 9월 2일 나스닥 종가와 그 이전 5일 평균 중 더 낮은 금액으로 결정됩니다.

양사는 받은 주식의 최대 50%를 배당으로 주주에게 분배할 계획으로 교차 소유 기회를 제공합니다. 이번 제휴는 600개 이상의 통신사업자를 지원하는 IQSTEL의 글로벌 통신 플랫폼과 미국 정부 시장에서의 Cycurion의 AI 사이버보안 전문성을 결합합니다. 파트너십은 AI 기반의 고도화된 사이버보안 솔루션을 개발하고 교차 판매 기회를 촉진하는 것을 목표로 합니다.

Cycurion (NASDAQ: CYCU) et IQSTEL (NASDAQ: IQST) ont conclu un accord d'échange d'actions d'un million de dollars pour renforcer leur alliance stratégique en cybersécurité pilotée par l'IA. Chaque société émettra pour 1 million de dollars d'actions ordinaires en faveur de l'autre, le prix par action étant déterminé par la valeur la plus basse entre le cours de clôture Nasdaq du 2 septembre 2025 et la moyenne des 5 jours précédents cette date.

Les deux sociétés prévoient de distribuer jusqu'à 50 % des actions reçues sous forme de dividendes à leurs actionnaires respectifs, créant ainsi des opportunités de participation croisée. L'alliance associe la plateforme télécom mondiale d'IQSTEL, qui dessert plus de 600 opérateurs, à l'expertise de Cycurion en cybersécurité IA sur les marchés gouvernementaux américains. Le partenariat vise à développer des solutions de cybersécurité avancées pilotées par l'IA et à faciliter des opportunités de vente croisée.

Cycurion (NASDAQ: CYCU) und IQSTEL (NASDAQ: IQST) haben eine Aktienverkehrsvereinbarung über 1 Million US-Dollar geschlossen, um ihre strategische Allianz im KI-gestützten Cybersicherheitsbereich zu stärken. Jede Gesellschaft wird der anderen Stammaktien im Wert von 1 Million US-Dollar ausgeben; der Aktienpreis wird auf den niedrigeren Wert festgelegt, entweder den Nasdaq-Schlusskurs vom 2. September 2025 oder den 5-Tage-Durchschnitt vor diesem Datum.

Beide Unternehmen planen, bis zu 50 % der erhaltenen Aktien als Dividenden an ihre Aktionäre auszuschütten und damit Möglichkeiten für Kreuzbeteiligungen zu schaffen. Die Allianz verbindet IQSTELs globale Telekomplattform, die mehr als 600 Betreiber bedient, mit Cycurions KI-Expertise in der Cybersicherheit für US-Regierungsbereiche. Die Partnerschaft zielt darauf ab, fortschrittliche, KI-gesteuerte Cybersicherheitslösungen zu entwickeln und Cross-Selling-Potenziale zu fördern.

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  • Stock exchange and dividend distribution subject to pending regulatory approvals
  • Final number of shares to be exchanged not yet determined
  • Share price calculation method could result in dilution depending on market conditions

Insights

IQSTEL and Cycurion's $1M stock swap creates mutual ownership, distributes dividends to shareholders, and forms strategic AI cybersecurity alliance with cross-selling potential.

IQSTEL and Cycurion have executed their previously announced $1 million stock exchange, creating a mutual equity structure that aligns both companies strategically. The transaction's most notable feature is the planned distribution of 50% of the received shares as dividends to respective shareholders, effectively creating cross-ownership between the investor bases. This dividend strategy specifically excludes short sellers, potentially creating a shareholder-friendly mechanism that rewards long-term investors.

The pricing mechanism for the stock exchange is carefully structured, using the lower of either the closing price on September 2, 2025, or the 5-day average closing price preceding that date. This approach minimizes potential price manipulation risks while ensuring fair valuation for both parties. With a combined shareholder base exceeding 30,000 investors and weekly liquidity in the millions of dollars, this transaction has meaningful market implications.

The strategic alliance merges complementary strengths: IQSTEL contributes its global telecom platform spanning 600+ operators with AI proprietary technologies, while Cycurion brings specialized cybersecurity expertise and government market access. This creates three distinct synergy opportunities: joint development of AI-driven cybersecurity solutions, reciprocal cross-selling channels, and accelerated R&D integration. Though relatively small at $1 million, this transaction establishes the foundation for potentially deeper collaboration, with both companies actively exploring additional opportunities including joint ventures and expanded AI development initiatives.

50% of the received shares to be distributed to respective shareholders creating strategic investor cross-ownership.

NEW YORK, Sept. 03, 2025 (GLOBE NEWSWIRE) -- IQSTEL Inc. (NASDAQ: IQST) (“IQSTEL”) and Cycurion Inc. (NASDAQ: CYCU) (“Cycurion”) today announced the execution of their previously announced $1 million stock exchange, finalizing the mutual equity agreement that aligns both companies and strengthens their alliance to build a next-generation AI-driven cybersecurity powerhouse.

Under the terms of the agreement, each company will issue $1 million worth of its common stock to the other. The number of shares will be calculated by dividing USD $1,000,000 by the applicable per-share price of the issuing company’s common stock. The per-share price will be the lower of:

(i)the Nasdaq Official Closing Price on the trading day immediately preceding the execution of the agreement (September 2, 2025), or
  
(ii)the average Nasdaq Official Closing Price over the five consecutive trading days immediately preceding September 2, 2025.


The exact number of IQSTEL and Cycurion shares to be issued will be confirmed in writing by both parties.

Note: Both parties will complete all necessary regulatory approvals for the issuance and distribution of the dividends and will make a proper public announcement once approvals are obtained.

Dividend Distribution – Enhancing Shareholder Value

Consistent with the agreement, each company plans to distribute up to 50% of the shares it receives as a stock dividend to its shareholders.

  • IQSTEL shareholders will receive Cycurion shares as a dividend.
  • Cycurion shareholders will receive IQSTEL shares as a dividend.

This dividend effectively transforms investors of each company into co-owners of both businesses, creating stronger alignment and reinforcing the alliance’s long-term potential. The record date for the dividend will be announced later in a joint communication once the definitive regulatory steps are completed. Importantly, short sellers will not be entitled to the dividend.

Unlocking Shareholder Value

We believe this stock exchange cements the foundation of a mutual equity structure designed to align long-term interests, foster cross-selling opportunities, and maximize value creation. Together, IQSTEL and Cycurion represent a combined shareholder base of over 30,000 shareholders and weekly market liquidity in the millions of U.S. dollars.

“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, added: “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.”

Complementary Strengths – Powerful Synergies

  • IQSTEL brings a global business platform in telecommunications, fintech, AI, and digital services, with established relationships across 600+ telecom operators worldwide.
  • Cycurion contributes deep expertise in AI-driven cybersecurity with a strong foothold in the U.S. and government markets.

Together, the companies will:

  • Develop and launch a state-of-the-art AI-driven cybersecurity solution, combining IQSTEL’s AI proprietary technologies with Cycurion’s cybersecurity expertise.
  • Cross-sell services, giving IQSTEL the ability to bring Cycurion’s cybersecurity products to its telecom clients worldwide, while Cycurion gains access to IQSTEL’s fintech and AI-driven offerings.
  • Accelerate product innovation through integrated R&D efforts, bringing next-gen cybersecurity and AI solutions to market faster.

Looking Ahead

This executed transaction marks only the beginning of IQSTEL and Cycurion’s mutual equity journey. Both companies continue to explore opportunities for deeper collaboration, including joint ventures, expanded AI R&D, and new go-to-market strategies designed to scale revenues and capture additional market share.

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

About IQSTEL Inc.

IQSTEL Inc. (NASDAQ: IQST) is a Global Connectivity, AI, & Digital Corporation providing advanced solutions across Telecom, High-Tech Telecom Services, Fintech, AI-Proprietary Solutions, and Cybersecurity. With operations in 21 countries and a team of 100 employees, IQSTEL serves a broad global customer base with high-value, high-margin services. Backed by a strong and scalable business platform, the company is forecasting $340 million in revenue for FY-2025, reinforcing its trajectory toward becoming a $1 billion tech-driven enterprise by 2027.

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.

Investor Relations Contact: Cycurion Investor Relations
ir@cycurion.com
(888) 341-6680

Media Relations Contact: Cycurion Communications
media@cycurion.com
(888) 341-6680


FAQ

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

The stock exchange is valued at $1 million, with each company issuing $1 million worth of its common stock to the other.

How will the CYCU and IQST stock exchange benefit shareholders?

Each company will distribute up to 50% of received shares as dividends to their shareholders, creating cross-ownership opportunities. Short sellers will not be entitled to the dividend.

What is the strategic purpose of the Cycurion-IQSTEL partnership?

The partnership aims to build a next-generation AI-driven cybersecurity powerhouse by combining IQSTEL's global telecom platform with Cycurion's cybersecurity expertise in U.S. government markets.

When will Cycurion and IQSTEL distribute the stock dividends?

The record date for the dividend distribution will be announced later after completion of necessary regulatory approvals.

How will the share price be determined for the stock exchange?

The share price will be the lower of the Nasdaq closing price on September 2, 2025, or the average closing price over the previous five trading days.
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