Intel stock spikes after report of possible US government stake
Cycurion, Inc. (NASDAQ:CYCU), a company currently valued at $11.04 million and showing signs of financial strain according to InvestingPro data, announced amendments to its articles of incorporation and disclosed details of its acquisition of a majority stake in SLG Innovation Inc., according to a statement filed with the Securities and Exchange Commission. The company’s overall financial health score stands at 1.45, categorized as ’WEAK’ by InvestingPro analysts, who have identified 12 key risk factors affecting the company’s outlook.
On March 31, Cycurion finalized an agreement to acquire a 51% equity interest in SLG Innovation. The transaction included a $2 million prepaid deposit, 508,141 shares of common stock, 51 shares of Series E Convertible Preferred Stock (with a face value of $10,000 per share and a conversion price of $1.00), and $10,814,147 in accounts receivable owed from SLG. Cycurion also issued 500,000 shares of common stock to assume SLG’s share-based payment obligations.
The company has amended its charter to authorize two new classes of preferred stock: Series E and Series F Convertible Preferred Stock. Cycurion authorized 100 shares of Series E Convertible Preferred Stock, each with a par value of $0.0001. These shares feature voting rights on an as-converted basis, dividend rights equal to those of common stock, conversion rights at a ratio of one preferred share for 10,000 common shares (subject to certain limitations), and a liquidation preference equal to the stated value plus accrued dividends.
Additionally, Cycurion authorized 10,000 shares of Series F Convertible Preferred Stock, also with a par value of $0.0001. Series F holders are entitled to voting rights on an as-converted basis, a 12% annual dividend payable quarterly in arrears in common stock, conversion rights at a ratio of one preferred share for 1,000 common shares (subject to certain limitations), and a liquidation preference equal to the stated value plus accrued dividends.
Both new preferred stock series include protective provisions that require approval from their respective holders before any adverse changes to their rights or increases in authorized shares are made.
The company stated it has ceased all forms of dilutive financing and does not intend to engage in such transactions going forward, according to the SEC filing. Cycurion’s common stock and redeemable warrants trade on the NASDAQ under the symbols CYCU and CYCUW, respectively.
In other recent news, Cycurion, Inc. has secured new contracts totaling over $8 million with government and commercial clients, including a significant $6 million deal with a municipal transportation agency for IT and cybersecurity solutions. The company has also announced a strategic partnership with IQSTEL Inc. to develop cybersecurity solutions for the telecommunications sector, including a "Cyber Shield" platform for telecom operators. Additionally, Cycurion has been named a Preferred Vendor by the Independent (LON:IOG) Colleges and Universities of Florida, allowing it to offer cybersecurity services to 30 member institutions.
In regulatory developments, Cycurion confirmed that its stock and warrants will continue to be listed on NASDAQ, following a previous SEC filing related to its predecessor company. However, the company received a compliance warning from Nasdaq due to the late filing of its quarterly financial report, though this does not currently affect its listing status. These updates reflect Cycurion’s ongoing efforts to expand its market presence and address regulatory obligations.
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