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ATLANTA, Jan. 30, 2025 /PRNewswire/ -- Vaycaychella, Inc. (OTC Pink: VAYK) ("VAYK") announces the successful acquisition of a 50% non-managerial ownership stake in a home engineering service company based in Atlanta, Georgia. The acquired company reported approximately $1 million in revenue for the year 2023, with a solid operating profit margin.
As part of the deal, the acquisition includes the 2024 P&L of the acquired company, which means that Vaycaychella will consolidate the acquired company's revenue and profit in its pending financial statement for the year 2024.
Payment in Preferred Shares with a Conversion Price of $0.005
VAYK will issue 500,000 Series B preferred stocks to the owner of the business, in exchange for the 50% non-managerial ownership. Each Series B preferred share will bear a face value of $1.00, and will be conditionally eligible to convert into 200 common shares, effecting a conversion price of $0.005 per share. This conversion price is than 500% higher than the most recent closing price of VAYK's common stocks.
Further, those Series B Preferred shares are not eligible to be converted into common shares until 24 months later, or when the price per share of VAYK's common stocks stays above $0.005 for ten consecutive days.
The acquisition price ($500,000 for 50% ownership) is roughly based on 1x Value/Revenue multiple, which is lower than the average multiple of engineering and construction industry, according to the newest available data published by independent valuation provider Eqvista (https://eqvista.com/revenue-multiples-by-industry/).
The company also has a conditional option to acquire the remaining 50% ownership and completely take over the acquired company. The acquisition price will be the same plus preformulated adjustments, but the company will have to pay in cash.
Integrated Part of $100 Million New and Disruptive Airbnb Business Strategy
This acquisition is one of VAYK's strategic moves to implement a disruptive business model in the short-term rental (Airbnb, etc.) industry.
"Our new business model will integrate real estate development, financial engineering, social accountability, and AI-based short-term rental management," declares Stephanie Anderl, Interim CEO of Vaycaychella.
"It will be a revolutionary business model with the potential to redefine the concept of short-term rental, and disrupt the whole short-term rental industry. Our near-term goal is to build a $20 million portfolio and expand it to $100 million with financing."