Good news for Vancouver-based Universal mCloud Corp. (TSXV:MCLD) (OTCQB:MCLDF), as the company announced that it has fully repaid a loan it took out for the acquisition of a royalty interest in Agnity Global, Inc.
Originally announced on January 17 of this year, the loan was provided by Flow Capital Corp. and consisted of $2,000,000 USD bearing an annual interest of 25 percent. In addition to the loan, the first year’s interest and an additional fee were also repaid. mCloud also delivered to Flow 1,500,000 common shares in the company.
“With the repayment of this loan to Flow, mCloud will be able to focus on executing our growth strategy of connecting assets across all our lines of business,” said Russ McMeekin, mCloud President and CEO. “We look forward to providing investors with an update of our activities during our Q2 earnings call on August 15, 2019.”
Universal mCloud is Changing the Way Assets are Managed
Universal mCloud is a leading provider of asset management solutions combining Internet of Things (IoT), cloud computing, analytics, and artificial intelligence (AI). Using these tools, the company is committed to maximizing energy production, curbing energy waste, and getting the most out of critical energy infrastructure.
mCloud’s prized offering is its AssetCare platform. Powered by AI, AssetCare applications provide complete asset management solutions to oil and gas companies, wind energy companies, and companies in the smart buildings sector.
Last week, the company announced the first deliveries of its AssetCare solutions to six oil and gas companies in Alberta, Canada. The solutions are offered through a SaaS model, leading to annual contracted recurring revenues, which will total $1 million CAD.
With more than 100 blue-chip customers, mCloud has connected over 28,000 assets in locations across the world. The company oversees a vast network of operating subsidiaries that delivers high-performance IoT, AI, 3D, and mobile capabilities, all of which are integrated into the AssetCare platform.
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Plenty of Good News for Q2 Earnings Call
In the press release, Universal mCloud President and CEO, Russ McMeekin, alluded to the company’s upcoming Q2 conference call. During the call, which will take place on August 15, the company will share its second-quarter financial results with shareholders.
In addition to the AssetCare delivers, mCloud also recently announced the acquisition of Fulcrum Automation Technologies and Autopro Automation Consultants. The acquisition of Autopro, in particular, is expected to provide mCloud with $35 million CAD in revenue and $5.5 million CAD in EBITDA on a trailing twelve-month basis. The company also closed its convertible debenture financing, which resulted in gross proceeds of $23,492,800 CAD.
The acquisitions, the debenture closing, the AssetCare deliveries, and now the repayment of the loan, have all been accomplished in the last month. This suite of good news is likely to impress shareholders during the earnings call, as did the Q1 earnings, which saw mCloud’s revenue grow 500 percent year-over-year to $2.2 million CAD.
Universal mCloud Stock Remains Undervalued
The plethora of good news has caused mCloud’s stock to rise on the TSX Venture Exchange throughout July, from a low of $0.365 on July 8 to a high of $0.42 on July 26.
Still, the stock remains undervalued considering that an analyst from Echelon Wealth Partners raised Universal mCloud’s price target to $1.20 CAD and offered the company a “speculative buy” rating.
It will be interesting to see how the stock reacts to the Q2 earnings call and to watch the company expand its already impressive network of connected assets beyond the western provinces into the wider world.
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