Cycurion waives Series A preferred stock lock-up restrictions

Cycurion, Inc. (NASDAQ:CYCU) announced Thursday that its board of directors has waived the lock-up restrictions on the company’s Series A Convertible Preferred Stock. The information was disclosed in a statement based on a filing with the Securities and Exchange Commission.

Previously, holders of the Series A Convertible Preferred Stock, and the underlying securities for which they have conversion rights, were subject to a one-year lock-up period. This period began with the closing of Cycurion’s business combination with Western Acquisition Ventures Corp. on February 14, 2025. The lock-up could have been lifted after six months if the company’s common stock achieved a daily trading value exceeding $150,000 for 30 consecutive trading days and a 30-day volume-weighted average price (VWAP) above $5.00. According to the company, these conditions have not been met.

The board determined that waiving the lock-up was in the best interests of the company. The Series A Convertible Preferred Stock accrues approximately $120,000 per year in stock or cash payments. If holders convert their preferred stock into common shares, Cycurion could avoid these annual costs. The company described this move as part of a strategic recapitalization effort.

Cycurion’s common stock and redeemable warrants continue to trade on The NASDAQ Stock Market LLC under the symbols CYCU and CYCUW, respectively.

This article is based on a press release statement and information from a recent SEC filing.

In other recent news, IQSTEL Inc. reported reaching $35 million in revenue in July, achieving a $400 million annual run rate ahead of schedule. The company aims for $1 billion in revenue by 2027 and projects a $15 million EBITDA run rate in 2026. Additionally, IQSTEL and Cycurion Inc. completed a $1 million stock exchange agreement, creating cross-ownership between their investor bases. Cycurion also announced securing $4.6 million in new AI cybersecurity contracts, increasing its total contract value to $73.6 million. The company has amended its bylaws to align with Delaware law and charter provisions, which are now effective. Furthermore, Cycurion executed a $3.2 million debt-for-equity exchange involving several investors, converting debt into Series G Convertible Preferred Stock. These developments reflect ongoing strategic moves by both companies.

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