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Universal mCloud poised to increase 2019 revenue as venture exchange conditionally approves Fulcrum and Autopro deal

Last updated: 08:17 10 Jun 2019 EDT, First published: 03:17 10 Jun 2019 EDT

Oil and gas workers
Universal mCloud is set to be a major tech provider in the oil and gas sector

Universal mCloud Corp (CVE:MCLD) (OTCQB:MCLDF), the artificial intelligence and analytics specialist, said its previously announced Fulcrum Automation Technologies Ltd and Autopro Automation Consultants Ltd acquisition will add C$35 million to its 2019 revenue.

In April this year, the group told investors it had signed a letter of intent to acquire Autopro, resulting in a three-party transaction to make mCloud a major technology provider in the oil and gas sector.

It has now received conditional approval from the TSX Venture Exchange for the deal, it said.

READ: Universal mCloud to acquire Fulcrum Automation Technologies, Autopro Automation Consultants

Universal mCloud, Fulcrum, and Autopro expect final definitive agreements shortly and to complete closing conditions before the end of this month.

"The closing of the Autopro acquisition will let us combine the technology talent we have at mCloud with the leading industry talent provided by Autopro to form a major digital asset management provider within the oil and gas market," said Russ McMeekin, the CEO of mCloud.

"Looking ahead into the second half of fiscal 2019, this acquisition will change our revenue outlook for the year and position us to accelerate the process of establishing a listing on the NASDAQ, which we have already commenced."

The acquisition will be structured as follows:

Fulcrum will initially acquire 100% of Autopro for cash and shares. Immediately thereafter, mCloud will acquire 100% of Fulcrum. As a result of this transaction, mCloud said it expects to add to its total combined revenues C$35 million in revenue and C$5.5 million in EBITDA (earnings before interest, tax, depreciation and amortization) on a trailing 12-month basis.

Large volumes of data

"Combining mCloud with Fulcrum and Autopro will let us help oil and gas providers all over the world use AI and analytics to tap into large volumes of data in the cloud at a fraction of current IT costs,” McMeekin had said in April. "While our relationship with Fulcrum began with a licensing agreement signed last February, as we began to work together, we decided that a full combination created the most value for both shareholders and customers."

Universal mCloud signed a C$15 million licensing agreement with Fulcrum in 2018 and this year said it plans to equip field-workers in the sector, with access to its AssetCare platform via hands-free smart glasses.

The technology allows workers to receive real-time instructions as they work through procedures, while its smart work order-management capabilities means work is prioritized.

Universal mCloud offers complete asset management solutions to three distinct segments: smart buildings, wind energy, and oil and gas.

With more than 100 blue-chip customers and over 28,000 assets connected around the globe, mCloud says it is changing the way energy assets are managed.

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter@Gile74

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