M&A
confidence high
sentiment neutral
materiality 0.55
Tego Cyber acquires CloudCover patents for 11M shares + 3M Series B Preferred; includes break-up fee options
Tego Cyber, Inc.
- Purchased two US patents: No. 8,832,833 and 10,326,777 (Integrated Data Traffic Monitoring System).
- Consideration: 11,000,000 restricted common shares and 3,000,000 Series B Preferred shares ($5 face value).
- T2 transaction to acquire substantially all CloudCover assets must close within 180 days, else buyer may unwind.
- Break-up fee up to $9M if buyer unwinds after accessing proprietary cyber insurance and zero-day detection systems.
- Patent monetization triggers termination of unwind right; right of first refusal on remaining CloudCover IP.