Carrier Connect Data Solutions Signs Non-Binding Letter of Intent to Acquire Network Connectivity and Delivery Assets from Morewave Communication

Executive Summary

• Carrier Connect Data Solutions Inc. entered into a non‑binding LOI to acquire the networking assets of Morewave Communication Inc., targeting immediate revenue growth of 15‑20% and a $750,000 share consideration paid in four escrowed tranches.
• The transaction is expected to close shortly after a definitive agreement is signed by May 1 2026, subject to due diligence, approvals, and other closing conditions.
• Morewave currently generates ~$725k of annual recurring revenue with >25% profit margin, providing Carrier an expanded last‑mile connectivity offering for its data‑center clients.

Key Details

• Parties: Carrier Connect Data Solutions Inc. (TSXV: CCDS) – acquiring via wholly owned subsidiary Carrier Connect Systems Ltd.; target is Morewave Communication Inc.
• Consideration: $750,000 worth of Carrier common shares (“Consideration Shares”), escrowed and released in four equal tranches at 6, 12, 18 and 24 months post‑closing.
• Transaction Structure: Arm’s‑length acquisition of Morewave’s networking services assets; no finder's fees for either party.
• Financial Impact (Projected):
• Immediate topline revenue increase of 15–20% upon closing.
• Additional recurring revenue stream from Morewave’s $725,000 annual base and high profit margin (>25%).
• Timeline: Definitive Agreement to be executed no later than May 1 2026; acquisition expected shortly thereafter, subject to customary conditions (approval, due diligence, etc.).
• Strategic Rationale: Enhances Carrier’s ability to sell network connectivity across its data‑center portfolio in Vancouver, Ottawa, Saint John, and Perth, creating a new profitable line of business.
• Escrow Terms: Consideration Shares held in escrow; release schedule – 25% at each of the 6‑month intervals post‑closing (6 mo, 12 mo, 18 mo, 24 mo).

Notable Quotes

“The acquisition of Morewave's network services immediately unlocks a valuable new revenue stream for Carrier, by allowing us to sell network connectivity and services to our entire client base, across our full portfolio of data centers. This is a highly profitable line of business employed by data center portfolios held across different geographies, and we are thrilled to add this capability and corresponding revenue driver.” – Mark Binns, CEO, Carrier Connect Data Solutions Inc.