Plurilock Security closes $3-million private placement

Executive Summary

• Plurilock Security Inc. has closed a $3 million non-brokered private placement of debenture units with a strategic investor.
• The financing consists of 3,000 debenture units issued at $1,000 per unit, comprising 10% unsecured convertible debentures and common share purchase warrants.
• Proceeds are designated to accelerate growth initiatives, expand critical services, and strengthen working capital.

Key Details

• Transaction Structure: Non-brokered private placement of 3,000 debenture units at $1,000 per unit.
• Gross Proceeds: $3,000,000.
• Debenture Terms:
  • Principal Amount: $1,000 per unit.
  • Interest Rate: 10% per annum, payable in arrears every three months.
  • Interest Payment Method: Cash, shares, or combination, based on company election and 10-day VWAP.
  • Conversion Price: 23 cents per share.
  • Conversion Expiry: October 30, 2028.
  • Ownership Cap: Conversion restricted if it results in beneficial ownership exceeding 9.99%.
• Warrant Terms:
  • Quantity: 4,000 common share purchase warrants per unit.
  • Exercise Price: 25 cents per share.
  • Expiry: October 30, 2028.
  • Early Expiry Condition: If shares are listed on NYSE, Nasdaq, or via indirect listing on a US exchange, warrants may expire 180 days following such listing (at company's election).
• Use of Proceeds: Accelerate growth initiatives, expand critical services business, and strengthen working capital.
• Regulatory/Hold: Subject to final TSX-V approval; four-month-and-one-day statutory hold period applies.
• Related Option Grants:
  • 100,000 options granted to an officer at an exercise price of 23 cents.
  • Option Vesting: 25% vests one year from grant date, then 25% every 12 months thereafter (5-year term).
• Related RSU Grants:
  • 1.75 million restricted share units (RSUs) granted to directors, officers, and consultants.
  • RSU Vesting: One-third vests one year from grant date, then one-third every 12 months thereafter (3-year term).

Notable Quotes

• None provided in the text.