RC365 Holding PLC (LSE:RCGH), a leader in payment gateway solutions and IT support, has officially signed an exclusive rights agreement with YouneeqAI Technical Services Inc.

This follows the non-legally binding Letter of Intent disclosed on 14 August, where RC365 expressed its intention to acquire exclusive rights to YouneeqAI’s IP and platform for the UK market.

Under the terms of the agreement, RC365 is granted the exclusive right to market, distribute and resell YouneeqAI’s platform to UK customers.

Additionally, RC365 has secured a right of first refusal for the purchase of additional territories.

The deal will be settled through the issuance of six million new ordinary shares, half of which have been issued upon signing, with the remainder to be released on or around 29 February 2024.

Beyond the share issuance, YouneeqAI is set to receive 1% of all gross revenue, excluding VAT, generated from the platform’s use by RC365. The agreement also permits RC365 to utilise YouneeqAI’s trademarks for advertising, promotion and marketing purposes.

The agreement, effective from 31 August 2023, spans an initial 10-year term, with automatic renewals for successive five-year periods, unless terminated by either party with a month’s notice before the term’s conclusion.

“This transaction with YouneeqAI represents an important milestone for RC365, customers and shareholders alike,” said RC365’s chief executive Chi Kit Law. “We previously announced our intention to enter into the A.I. space in a meaningful way that both complements our existing business, but also supports our future expansion and evolution plans, we feel this transaction represents a great first step in that direction.”

Murray Galbraith, chief executive of YouneeqAI, added: “We are incredibly excited to close this transaction with the RC365 team. RC365’s current business model, customers, future plans and goals align perfectly with YouneeqAI’s platform.”

On the equity front, the initial three million new ordinary shares are set to be listed on the London Stock Exchange around 6 September 2023, priced at 75p per share.