LICT Corp's Cal-Ore Unit Secures $60M Fiber Deal, Targeting 20-Year Growth

NEW YORK, NY – September 14, 2026 – LICT Corporation (OTC Pink: LICT), a holding company focused on rural broadband and telecommunications, announced that its subsidiary Cal-Ore has secured a significant expansion of its work in California's burgeoning fiber optic market. The deal involves three additional work orders for a large-scale fiber construction project, projected to deliver approximately $60 million in revenue and $20 million in EBITDA to Cal-Ore between 2027 and 2028.

While the immediate financial injection is substantial, the strategic core of the agreement lies in its long-term structure. The projects include a 20-year fiber lease and recurring maintenance contract, establishing a predictable, multi-decade revenue stream and providing Cal-Ore with a crucial pathway for market expansion beyond its current operational footprint. The new construction is slated to commence in early 2027, with revenue recognized as project milestones are met.

A Strategic Play in California's Broadband Boom

This expansion by Cal-Ore is not happening in a vacuum. It represents a savvy move to capitalize on California's historic investment in digital infrastructure. The state's "Broadband for All" initiative, a multi-billion-dollar effort to bridge the digital divide, has created a fertile ground for infrastructure builders. A key component of this is the Middle-Mile Broadband Initiative (MMBI), a $3.25 billion project to build a statewide, open-access fiber network. This "middle-mile" backbone is designed to lower the barrier to entry for last-mile providers by allowing them to connect to a state-run network rather than building their own costly long-haul routes.

LICT Corporation's recent financial disclosures have already pointed to its successful engagement with a "middle-mile fiber provider," and these new work orders for Cal-Ore appear to be a direct continuation of that strategy. By aligning with state-level infrastructure priorities, Cal-Ore positions itself as a key partner in building out the network that will connect millions of Californians. The company, which already serves communities across Northern California and Southern Oregon, is leveraging its regional expertise to secure contracts that are foundational to the state's connectivity goals. As of this summer, California reported that 1,250 miles of its middle-mile network were operational, with thousands more under construction, creating an immediate and growing need for experienced construction and maintenance partners like Cal-Ore.

Deconstructing the Financial Impact for LICT Investors

For investors in LICT Corporation, this announcement provides a clear line of sight into future growth and profitability. The projected $60 million in revenue and $20 million in EBITDA over two years represent a material financial event for the company. To put this in perspective, LICT reported total revenues of $40.6 million and an EBITDA of $18.2 million for the entire second quarter of 2026. The EBITDA from these three projects alone, spread across 2027 and 2028, is therefore comparable to a full quarter of the parent company's recent earnings power.

This deal reinforces LICT's aggressive capital allocation strategy. The company has publicly outlined plans for over half a billion dollars in capital expenditures between 2025 and 2028, with a significant portion dedicated to network construction and broadband expansion. The Cal-Ore projects fit squarely within this vision, demonstrating the company's ability to convert strategic investment plans into secured, high-margin contracts. "This is precisely the kind of execution institutional investors look for," noted one market analyst. "It’s not just about planning to spend; it’s about securing long-term, profitable work that validates the growth story." The milestone-based revenue recognition provides a transparent framework for tracking progress, even as it defers the full financial impact to 2027 and 2028.

Beyond Construction: The 20-Year Recurring Revenue Play

Perhaps the most compelling aspect for long-term strategists and investors is the 20-year fiber lease and maintenance agreement. This component transforms the deal from a standard construction contract into a durable, long-term asset. The recurring revenue from maintenance provides a stable financial foundation that is less susceptible to the cyclical nature of construction projects. In the telecommunications sector, such long-term, predictable cash flows are highly prized, often commanding higher valuation multiples and providing a buffer against market volatility.

Furthermore, the press release highlights that the lease will grant Cal-Ore "competitive access to additional markets." This is the strategic linchpin of the deal. By securing rights on what is likely an open-access middle-mile network, Cal-Ore can efficiently extend its service offerings into new territories without the prohibitive cost of building its own backbone infrastructure from the ground up. This capital-light expansion model allows the company to enter new communities as a last-mile service provider, directly challenging incumbents and growing its customer base. This move positions Cal-Ore to evolve from a regional infrastructure builder into a more expansive and competitive service provider over the next two decades.

Navigating a Competitive and Evolving Landscape

California's fiber market is intensely competitive, with national giants like AT&T and Frontier vying for market share alongside nimble regional players such as Sonic and Race Communications. However, much of the competitive heat is concentrated in dense urban and suburban corridors. Cal-Ore's focus and LICT's broader strategy have historically centered on rural and underserved markets, where the economics of deployment are more challenging.

The state's open-access middle-mile network is a market-shaping force designed specifically to foster competition in these less-served areas. It effectively levels the playing field by providing the critical "highway" and leaving it to providers like Cal-Ore to build the "driveways" to homes and businesses. This symbiotic relationship between public infrastructure investment and private sector execution is becoming a defining feature of the modern telecom landscape. While federal funding programs like BEAD have faced some administrative delays in the state, the sheer scale of California's own investment ensures that the momentum for broadband expansion will continue. The projects secured by Cal-Ore demonstrate a clear ability to navigate this complex environment and secure a foundational role in the state's digital future.

With construction set to begin in early 2027, this series of work orders provides a robust, multi-year pipeline of high-margin activity for Cal-Ore, directly fueling LICT Corporation’s growth narrative and solidifying its position as a critical enabler of next-generation connectivity in the nation's largest state.