VAYK Reached Agreement on Terms to Acquire $1 Million Company for Disruptive Airbnb Strategy
ATLANTA, Dec. 2, 2024 /PRNewswire/ -- Vaycaychella, Inc. (OTC Pink: VAYK) ("VAYK") today announces that the company has reached agreement with the acquiree upon the terms and conditions to acquire 50% non-managerial ownership of a home engineering service company based in Atlanta, Georgia.
The acquisition target reported approximately $1 million revenue for the year 2023, with a solid margin of operating profit.
Payment in Preferred Shares with a Conversion Price of $0.005
The two parties have agreed that 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 eligible to convert into 200 common shares after 24 months, effecting a conversion price of $0.005 per share. This conversion price is more than 700% higher than the most recent closing price of VAYK's common stocks.
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 rest 50% ownership and to completely take over the acquiree. 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 will be one of VAYK's moves to carry out 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 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."
Anderl confirms that the company is working with business partners and prospective investors to possibly kick off this new business model in the year 2025.
"The acquiree is a home engineering service company, which specializes in remodeling, redecorating and renovating residential properties," explains Anderl. "Not only it has the potential to grow into a $2 million to $3 million business by itself, but it will also provide an in-house capability to build residential properties customized for our new business model."
The company expects to close the acquisition by the end of this year.
Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur.
VAYK Contact:
Contact@Vaycaychella.com
Contact: +1 470-804-7144
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SOURCE Vaycaychella, Inc.
