VAYK Reached Agreement on Terms to Acquire $1 Million Company for Disruptive Airbnb Strategy

Rhea-AI Summary

Vaycaychella (VAYK) has agreed to acquire 50% non-managerial ownership of an Atlanta-based home engineering service company that reported $1 million 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, convertible to common shares at $0.005 after 24 months. This acquisition is part of VAYK's strategy to develop a $100 million disruptive Airbnb business model integrating real estate development, financial engineering, and short-term rental management. The company aims to build a $20 million portfolio initially, with plans to expand to $100 million with financing. The target company specializes in property remodeling and renovation, with potential growth to $2-3 million in revenue.

Positive

• Acquisition target has $1 million revenue with solid operating profit margins
• Conversion price of $0.005 is 700% higher than current stock price
• Acquisition multiple of 1x revenue is below industry average
• Option to acquire remaining 50% ownership available
• Target company has growth potential to $2-3 million in revenue

Negative

• Payment in preferred shares may lead to future dilution upon conversion
• Non-managerial ownership limits operational control
• Cash requirement for remaining 50% ownership acquisition

ATLANTA, Dec. 2, 2024 /PRNewswire/ -- Vaycaychella, Inc. (OTC Pink: VAYK) ("VAYK") today announces that the company has reached agreement with the acquiree upon the terms and conditions to acquire 50% non-managerial ownership of a home engineering service company based in Atlanta, Georgia.

The acquisition target reported approximately $1 million revenue for the year 2023, with a solid margin of operating profit.

Payment in Preferred Shares with a Conversion Price of $0.005

The two parties have agreed that 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 eligible to convert into 200 common shares after 24 months, effecting a conversion price of $0.005 per share. This conversion price is more than 700% higher than the most recent closing price of VAYK's common stocks.

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 rest 50% ownership and to completely take over the acquiree. 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 will be one of VAYK's moves to carry out 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 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 acquiree is a home engineering service company, which specializes 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 company expects to close the acquisition by the end of this year.

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
Contact: +1 470-804-7144

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SOURCE Vaycaychella, Inc.

FAQ

What is the revenue of the company VAYK is acquiring?

The acquisition target reported approximately $1 million in revenue for the year 2023.

How much of the target company is VAYK acquiring?

VAYK is acquiring 50% non-managerial ownership of the home engineering service company.

What is the conversion price for VAYK's Series B preferred shares?

The Series B preferred shares will be convertible at $0.005 per share after 24 months.

What is VAYK's target portfolio size in their new Airbnb strategy?

VAYK aims to build a $20 million portfolio initially and expand it to $100 million with financing.