Plurilock arranges $3-million debenture financing

Executive Summary

• Plurilock Security Inc. has announced a successful committed offering of a $3 million strategic investment via a non-brokered private placement.
• The financing consists of 10% unsecured convertible debenture units, including convertible debentures and common share purchase warrants, issued to a strategic investor.
• Proceeds will be utilized to accelerate growth initiatives, expand the critical services business, and strengthen working capital.

Key Details

• Total Proceeds: $3,000,000
• Instrument Structure: Non-brokered private placement of 10-per-cent unsecured convertible debenture units.
• Debenture Components:
  • 3,000 convertible debentures with a face value of $1,000 each.
  • 4,000 common share purchase warrants.
• Conversion Terms:
  • Debentures are convertible at the holder's option at a price of $0.23 per share.
  • Conversion period is three years from the date of issue.
  • Total common shares issuable upon conversion: 13,043,478 shares.
• Warrant Terms:
  • Warrants are exercisable at a price of $0.25 per share.
  • Exercise period is three years from the date of issue.
  • Total common shares issuable upon exercise: 12,000,000 shares.
• Interest Terms:
  • Interest rate of 10% per annum.
  • Interest is payable in common shares at the company's election, based on the 10-day Volume-Weighted Average Price (VWAP) at the time of payment, subject to TSX Venture Exchange policies.
• Use of Proceeds: Accelerate growth initiatives, expand critical services business, and strengthen working capital.
• Hold Period: All securities are subject to a four-month-and-one-day statutory hold period from the date of issuance.
• Closing Conditions: Subject to customary closing conditions.

Notable Quotes

• "This strategic investment provides growth capital from a long-term partner who understands our market and mission," said Ian L. Paterson, chief executive officer of Plurilock. "It allows us to accelerate execution on key growth priorities, including expanding our critical services offerings, scaling internationally and driving toward profitability."