Plurilock Announces Closing of $3 Million Strategic Investment

Executive Summary

• Plurilock Security Inc. closed a non‑brokered private placement raising $3,000,000 through the issuance of 3,000 debenture units at $1,000 per unit to a strategic investor.
• Each unit contains a 10% unsecured convertible debenture (principal $1,000) convertible at $0.23 and 4,000 common share purchase warrants exercisable at $0.25, both expiring on October 30, 2028 (subject to US‑exchange listing conditions).
• Proceeds will be used to accelerate growth initiatives, expand the Critical Services business, and strengthen working capital.

Key Details

• Offering Size: $3,000,000 total gross proceeds.
• Units Issued: 3,000 debenture units @ $1,000 each.
• Debenture Terms:
• Principal amount $1,000 per unit.
• Unsecured, convertible at holder’s option at $0.23 per share.
• Interest rate 10% per annum, payable quarterly in cash or shares (or combination) based on 10‑day VWAP.
• Conversion rights expire October 30, 2028; conversion not permitted if resulting ownership >9.99%.
• Warrant Terms:
• 4,000 warrants per unit, exercisable at $0.25 per share until October 30, 2028.
• Warrants will expire 180 days after any US‑exchange listing of Plurilock shares (at company’s election).
• Use of Proceeds: Accelerate growth initiatives, expand Critical Services division, bolster working capital.
• Regulatory Conditions: Subject to final TSXV approval; securities subject to a four‑month and one‑day statutory hold period.
• U.S. Offering Restrictions: Securities not registered under U.S. securities laws; cannot be offered or sold in the United States absent exemption.
• Additional Equity Compensation Grants:
• 100,000 stock options granted to an officer (exercise price $0.23, five‑year term, vesting 25% annually).
• 1,750,000 restricted share units granted to directors/officers/consultants (three‑year term, vesting one‑third annually).

Notable Quotes

• Ian L. Paterson, CEO: “The capital raised will enable us to accelerate our growth initiatives and expand our Critical Services business, positioning Plurilock for continued success in the cybersecurity market.”