New York-based IQSTEL Inc. (NASDAQ: IQST) and McLean, Virginia-based Cycurion Inc. (NASDAQ: CYCU) completed a previously announced $1 million reciprocal stock exchange. This agreement solidifies their partnership to develop advanced AI-powered cybersecurity solutions.
The exchange involved each company issuing $1 million worth of its common stock to the other. The share count was determined using the lower of the NASDAQ closing price on September 2, 2025, or the five-day average preceding that date.
Both companies plan to distribute up to half of the acquired shares as stock dividends to their respective shareholders. This means IQSTEL shareholders will receive Cycurion shares and vice versa, fostering a stronger alignment between the investor bases of both entities. The exact record date for the dividend distribution will be announced following regulatory approvals. Short sellers will not be eligible for the dividend.
Leandro Iglesias, CEO of IQSTEL, described the transaction as transformative. He highlighted the immediate shareholder value generated by the dividend and the establishment of a new collaborative model in the AI-driven cybersecurity sector.
L. Kevin Kelly, CEO of Cycurion, emphasized that the completed exchange signifies the next stage in their combined efforts. He pointed out that the shared equity structure will generate synergies, leveraging Cycurion’s expertise in the U.S. government market and IQSTEL’s global telecommunications reach.
The combined entity boasts a shareholder base exceeding 30,000, with substantial weekly market liquidity. IQSTEL brings its global telecommunications, fintech, AI, and digital services platform, which includes relationships with over 600 telecom operators worldwide. Cycurion provides its AI-driven cybersecurity expertise, particularly strong within the U.S. government sector.
The companies plan to jointly develop a new AI-driven cybersecurity solution, combining IQSTEL‘s proprietary AI technologies with Cycurion‘s cybersecurity knowledge. They will also cross-sell services, giving IQSTEL access to new clients for Cycurion’s products and vice versa. Integrated research and development will accelerate the launch of next-generation cybersecurity and AI solutions.
This transaction represents the first step in a broader, ongoing collaboration between IQSTEL and Cycurion. Future plans include exploring joint ventures, expanding AI research and development, and implementing new market strategies to increase revenue and expand market share.
Cycurion, located in McLean, Virginia, offers IT cybersecurity solutions and AI-driven services. Its offerings include cybersecurity, program management, and business continuity, largely using its AI-enhanced ARx platform. It serves government, healthcare, and corporate clients.
IQSTEL operates globally, offering advanced solutions in telecommunications, high-tech telecom services, fintech, AI, and cybersecurity. The company projects $340 million in revenue for fiscal year 2025 and aims to reach $1 billion in revenue by 2027.
Related
