VAYK Closes Acquisition of $1 Million Company

Rhea-AI Summary

Vaycaychella (VAYK) has acquired a 50% non-managerial stake in an Atlanta-based home engineering service company that generated approximately $1 million in revenue in 2023. The acquisition, valued at $500,000, will be paid through 500,000 Series B preferred shares with a $1.00 face value each, convertible to 200 common shares at $0.005 per share after 24 months.

The acquisition price represents roughly 1x Value/Revenue multiple, below the industry average. VAYK has an option to acquire the remaining 50% ownership for cash. This acquisition is part of VAYK's strategy to implement a disruptive business model in the short-term rental industry, with goals to build a $20 million portfolio and expand it to $100 million with financing.

The acquired company specializes in remodeling and renovating residential properties, with potential growth to $2-3 million in revenue.

Positive

• Acquisition of profitable company with $1M annual revenue
• No immediate cash outlay required for acquisition
• 24-month lock-up period on preferred share conversion
• Below-market acquisition multiple (1x revenue)
• Option to acquire remaining 50% stake
• In-house capability addition for property renovation

Negative

• Potential future dilution from 500,000 preferred shares conversion
• Non-controlling stake (50%) limits operational control
• Cash requirement for remaining 50% stake acquisition

ATLANTA, Jan. 30, 2025 /PRNewswire/ -- Vaycaychella, Inc. (OTC Pink: VAYK) ("VAYK")  announces the successful acquisition of a 50% non-managerial ownership stake in a home engineering service company based in Atlanta, Georgia. The acquired company reported approximately $1 million in revenue for the year 2023, with a solid operating profit margin.

As part of the deal, the acquisition includes the 2024 P&L of the acquired company, which means that Vaycaychella will consolidate the acquired company's revenue and profit in its pending financial statement for the year 2024.

Payment in Preferred Shares with a Conversion Price of $0.005

VAYK will issue 500,000 Series B preferred stocks to the owner of the business, in exchange for the 50% non-managerial ownership. Each Series B preferred share will bear a face value of $1.00, and will be conditionally eligible to convert into 200 common shares, effecting a conversion price of $0.005 per share. This conversion price is than 500% higher than the most recent closing price of VAYK's common stocks.

Further, those Series B Preferred shares are not eligible to be converted into common shares until 24 months later, or when the price per share of VAYK's common stocks stays above $0.005 for ten consecutive days.

The acquisition price ($500,000 for 50% ownership) is roughly based on 1x Value/Revenue multiple, which is lower than the average multiple of engineering and construction industry, according to the newest available data published by independent valuation provider Eqvista (https://eqvista.com/revenue-multiples-by-industry/).

The company also has a conditional option to acquire the remaining 50% ownership and completely take over the acquired company. The acquisition price will be the same plus preformulated adjustments, but the company will have to pay in cash. 

Integrated Part of $100 Million New and Disruptive Airbnb Business Strategy

This acquisition is one of VAYK's strategic moves to implement a disruptive business model in the short-term rental (Airbnb, etc.) industry.  

"Our new business model will integrate real estate development, financial engineering, social accountability, and AI-based short-term rental management," declares Stephanie Anderl, Interim CEO of Vaycaychella.

"It will be a revolutionary business model with the potential to redefine the concept of short-term rental, and disrupt the whole short-term rental industry. Our near-term goal is to build a $20 million portfolio and expand it to $100 million with financing."

Anderl confirms that the company is working with business partners and prospective investors to possibly kick off this new business model in the year 2025.

"The acquired company is a home engineering service business specializing in remodeling, redecorating and renovating residential properties," explains Anderl. "Not only it has the potential to grow into a $2 million to $3 million business by itself, but it will also provide an in-house capability to build residential properties customized for our new business model."  

The term of the acquisition was finalized last year. However, the parties were only able to close the deal this week due to scheduling issues.

Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur.

VAYK Contact:
Contact@Vaycaychella.com

View original content:https://www.prnewswire.com/news-releases/vayk-closes-acquisition-of-1-million-company-302364566.html

SOURCE Vaycaychella, Inc.

FAQ

What is the value of VAYK's recent acquisition in Atlanta?

VAYK acquired a 50% stake in an Atlanta-based home engineering service company valued at $500,000, based on the company's $1 million revenue in 2023.

How is VAYK paying for the 50% acquisition stake?

VAYK is paying through 500,000 Series B preferred shares, each with a $1.00 face value, convertible to 200 common shares at $0.005 per share after 24 months.

What are VAYK's portfolio expansion goals for their new Airbnb business strategy?

VAYK aims to build a $20 million portfolio initially and expand it to $100 million with financing as part of their new short-term rental business strategy.

What is the revenue potential of VAYK's newly acquired engineering company?

The acquired company is expected to grow from its current $1 million revenue to potentially $2-3 million in revenue.

When can VAYK's Series B preferred shares be converted to common stock?

The Series B preferred shares can be converted after 24 months or when VAYK's common stock price remains above $0.005 for ten consecutive days.