Balincan USA, Inc. and Tekumo LLC. complete Merger, Financing and Recapitalization
NEW YORK, Sept. 09, 2022 (GLOBE NEWSWIRE) — Balincan USA Inc. (“Balincan” or the “Company”) announces that it has acquired Tekumo LLC, a Colorado limited liability corporation (“Tekumo”), pursuant to an acquisition completed on June 14, 2022, and closed $797,500 of new financing. Further, all current debt and outstanding convertible and preferred securities were eliminated in exchange for Company common equity.
Introducing Tekumo
Tekumo is an intelligent service delivery platform that solves the “last-mile” of installing, monitoring, and maintaining technology systems and smart connected devices.
The Internet of Things (IoT) is exploding, and digital transformation is everywhere. In delivering any product or service there remains a human link in the supply chain to install and manage such offerings. Tekumo delivers on those service needs, deploying its on-demand Service as a Service platform (SaaS).
Tekumo is founded by a small group of successful entrepreneurs; Strings Kozisek (CEO), Chris Nichols (CSO), Phillip Dignan (President/CFO), and Jacob Beasley (CTO). This team brings a shared vision and shared history. Their previous ventures in the software, managed services, organic material manufacturing, retail and automotive verticals are currently generating over $300M in annual revenue.
The Company offers three main product lines. TekumoPRO is a platform that connects enterprises, retailers, and OEM’s with local skilled resources to install and maintain technology systems. It delivers a smarter dynamic workforce, intelligent automation, real-time visibility, and full integration into client service management systems.
TekumoIOT delivers on the complete service chain for smart connected devices. It installs, monitors and manages sensors, devices gateways, hubs, and data for multiple verticals including Multiple Dwelling Units (MDU’s), Quick Service Restaurants (QSR’s), Assisted Living, Retail, Hospitality, Utilities, Builders, Insurance, and Healthcare – all with 24/7 onsite support. TekumoIQ provides real-time risk management and process management data from all connected assets, accessible via Tekumo dashboards or directly delivered into any end user ecosystem.
Simply put, Tekumo delivers your product service needs. It is headquartered in Colorado Springs, Colorado.
The Transaction
On June 14, 2022, the Company entered into a Contribution Agreement (the “Contribution Agreement”) with the members of Tekumo LLC in which Balincan acquired 100% of the membership interest of Tekumo in exchange for 10 million shares of Series A Preferred Stock in the Company.
At execution of the Contribution Agreement, the three principal members of Tekumo assumed the following positions: Strings Kozisek, Director and Chief Executive Officer; Phillip Dignan, Director and Chief Financial Officer; Christopher Nichols, Director and Chief Strategy Officer. Mr. Zi Chin (Paul) Lu resigned as Director and Interim Manager.
Mr. Strings Kozisek, the new Chief Executive Officer of “BCNN” stated, “This is an important milestone in the evolution of BCNN and Tekumo and positions the Company as a leader in service delivery”.
Financing
In conjunction with the acquisition, the Company entered into Stock Purchase Agreements (the “Stock Purchase Agreements”) with investors (the “Investors”) pursuant to which the Company sold $797,500 in Secured Convertible Promissory Notes. The Investors also received 7-year warrants that may be exercised into $797,500 in common shares.
Recapitalization
Agreement was also reached with current debt holders and Preferred Stockholders to recapitalize the Company by eliminating all outstanding debt and Preferred Stock in exchange for common shares.
The Company also engaged an advisor to assist with identifying potential operating businesses for acquisition and issued them Series B Preferred Stock.
With this financing and recapitalization, we created a significantly improved capital structure and balance sheet,” said Balincan Chief Financial Officer, Phillip Dignan.
Mr. Chris Nichols, the Chief Strategy Officer of “BCNN” said “Being a public company is a key element of our growth strategy, and the completion of this acquisition of Tekumo will provide us with greater access to capital, enhance our ability to attract additional talent to our management team and will allow us to use our public equity to execute on our future acquisition strategy.”
About Balincan USA, Inc.
Balincan USA, Inc (OTC: BCNN) is an alternative reporting publicly held company that wholly-owns Tekumo LLC.
For more details related to the transaction, please see the Company’s Current Disclosure filed with OTC Markets on August 30, 2022.
Safe Harbor:
Forward-Looking Statements
Any statements made in this press release which are not historical facts contain certain forward-looking statements, as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the Company’s operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the Company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the Company’s dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The Company disclaims any obligation to update the information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.
Contact
Chris Nichols
cnichols@Tekumo.com
404-784-4015
