CA - mCloud stock gains 16% postmarket on Google Cloud integration $12.5M funding

• mCloud Technologies ( NASDAQ: MCLD ) said Tuesday it implemented a new go-to-market plan as part of its partnership with Google Cloud.
• Shares of mCloud ( MCLD ), which ended 8.3% lower on Tuesday, rose 16.2% after the bell.
• The firm also announced $12.5M funding from a consortium of investors based in Saudi Arabia supporting the growth its sustainability applications on Google Cloud, aligned with Saudi Vision 2030.
• • Through the partnership with Google Cloud , mCloud ( OTCQB:MCLDF ) will co-market, co-sell, and deliver AssetCare sustainability solutions to customers worldwide.
• • mCloud ( OTCQB:MCLDF ) expects to benefit from over 25% improvements to its cost structure starting in calendar Q4 and fully in place by end of Q1 2023.
• • The optimizations include an ~25% reduction in headcount implemented in Q3 related to the firm's exit from its technical project services unit, and improvements to costs associated with sales and marketing and R&D as these align with Google Cloud.
• • • mCloud ( OTCQB:MCLDF ) will exit its technical project services business to focus resources on higher-margin AssetCare growth.
  • • The company will not continue delivering or pursuing renewal of certain legacy assets and workers.
  • • mCloud ( OTCQB:MCLDF ) has been working with Carbon Royalty, which provided working capital, to implement AssetCare at dealerships in North America.
  • • • With the Google Cloud partnership in place,
    • • mCloud ( OTCQB:MCLDF ) is now seeking to potentially restructure the original deal with Carbon Royalty.
      • • • mCloud ( OTCQB:MCLDF ) also entered into securities purchase deal with strategic investors, largely industrial organizations based in Saudi Arabia aligned with Saudi Vision 2030, for the purposes of a non-brokered share financing of up to $12.5M.
        • • • The company will issue ~11M shares at $1.14 apiece.
        • • The offering is expected to be completed in the next several days.
        • • Proceeds will be used to ramp up deployment of mCloud's ( OTCQB:MCLDF ) sustainability and decarbonization capabilities on Google Cloud.

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