IQSTEL Inc. ( IQST ) and Cycurion Inc. ( CYCU ) on Thursday announced the signing of a Memorandum of Understanding (MOU) to become mutual equity partners following a planned $1 million stock exchange, with half of each company's exchanged shares to be distributed as a dividend to enhance shareholder value.

It sets the stage for creating a powerhouse in AI‑driven cybersecurity for the global telecommunications industry.

Under the MOU, each company will issue $1 million worth of its common stock to the other.

Also Read: Cycurion Stock Climbs as AI Cybersecurity Platform Gains Traction With U.S. Agencies and Health Sector

The number of shares will be based on the lower of the Nasdaq Official Closing Price on the trading day immediately preceding the signing of the binding agreement and the average Nasdaq Official Closing Price over the five (5) trading days immediately preceding the signing of the binding agreement.

Subject to board and regulatory approvals, each company intends to distribute up to 50% of the shares it receives to its existing shareholders as a stock dividend, transforming IQSTEL ( IQST ) shareholders into Cycurion ( CYCU ) shareholders, and vice versa.

This transaction is designed to unlock shareholder value by creating a mutual equity structure that both companies view as a "sibling company" relationship, ensuring each directly benefits from the other's success, the company said in the press release.

In addition, the stock swap opens the door for powerful cross‑selling opportunities. IQSTEL ( IQST ) will be able to introduce its Telecom, Fintech, and AI‑driven services to Cycurion's ( CYCU ) established customer base, while Cycurion ( CYCU ) will gain access to offer its advanced cybersecurity solutions to some of the largest telecom operators in the world through IQSTEL's ( IQST ) extensive global network.

The MOU outlines an initial 60‑day exploratory period; however, the companies plan to execute the definitive agreement within the next 30 days, completing due diligence, securing internal approvals, and advancing toward implementation.

In parallel, both parties will work to identify further opportunities for collaboration, potentially including joint ventures, expanded R&D initiatives, and integrated go‑to‑market strategies.

Price Actions: IQST stock is trading higher by 2.72% to $8.32 premarket at last check Thursday. CYCU is up 3%.

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