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Plurilock Appoints New Executive Chair and Begins Business Transformation Plan, Plans 10-1 Share Consolidation and $3 Million Financing
Thursday, April 18, 2024Company Profile | Follow Company
Victoria, BC, April 18, 2024--(T-Net)--Plurilock Security Inc. (TSXV: PLUR) and related subsidiaries, a cybersecurity services and solutions provider, has provided information on its corporate transformation plan.
The Company announced the appointment of Ali Hakimzadeh to the board of directors and the election of Mr. Hakimzadeh as Executive Chairman of the Board.
Mr. Hakimzadeh has an extensive background in capital markets and mergers and acquisitions. Mr. Hakimzadeh also brings over 25 years of investment banking, merchant banking, and capital market advisory experience.
Most recently, Mr. Hakimzadeh was Executive Chairman of the Board of HS Govtech Solutions Inc., a company that sold software to state, municipal, and local governments in North America. HS Govtech was a listed issuer which was sold in 2023 to a San Francisco based private equity buyer at a price that was over a 150%12 premium to the market price prior to announcement.
Mr. Hakimzadeh replaces outgoing director and chairman Robert Kiesman.
Ian Paterson, CEO, Plurilock Security Solutions Inc.
"We are very excited for Mr. Hakimzadeh to join our team, particularly with his capital markets experience, and look forward to what we can accomplish together," says Ian L. Paterson, CEO of Plurilock.
To optimize the capital structure of the Company and to attract financing, the board of directors says it has approved a share consolidation at a ratio of one post-consolidated share for every ten (10) pre-consolidated shares (the "Share Consolidation"). The Share Consolidation is anticipated to be completed in the immediate future.
Immediately following the Share Consolidation, the issued capital of the Company will be reduced to 10,294,845 shares outstanding.
In connection with the Share Consolidation, the Company will be undertaking a financing to raise approximately $3,000,000. The Offering will be priced in the context of the market and issued on a post-consolidated basis.
Capital raised through this transaction will be used to support the company's increasing focus on its profit centers, including use for:
"Our focus over the course of 2024 will be on profitable growth and to improve Plurilock's balance sheet," says Paterson. "We will invest in the growth centers of the business, with the strong aim to continue to achieve positive margin growth throughout the year."
The Company also said in a release that it proposes to settle up to $500,000 of payables though the issuance of shares. The Debt Settlement through share issuance will help to conserve and extend the Company's working capital. The Debt Settlement will be priced in the context of the market on a post-consolidated basis.
The Company also announced its intention to induce conversion of its $1,520,000 of outstanding convertible debentures. It is intended that the Company will reprice the outstanding debentures and offer an inducement to exercise their conversion rights within a prescribed time period. The terms of the repricing and Debenture Inducement will be determined in the context of the market on a post-consolidated basis.
About Plurilock
Plurilock sells cybersecurity solutions to the United States and Canadian Federal Governments and to Global 2000 companies. Through these relationships, Plurilock sells its unique brand of critical services—leveraging our expertise to aid clients in defending against, detecting, and preventing costly data breaches and cyberattacks.
Additional Details on Company Announcement The Offering, the Debt Settlement, and the Debenture Inducement are all subject to exchange approval and, where applicable, subject to shareholder approval. Certain insiders of the Company will be participating in the Offering and the Debt Settlement and are relying upon exemptions from MI 61-101 pertaining to the protection of minority shareholders in related party transactions. The transactions contemplated herein are described to transform the capital structure of the Company and position it for growth and shareholder value appreciation. [ MORE ] |
Plurilock's Base Shelf Prospectus, Prospectus Supplement, financial statements and management's discussion and analysis, among other documents, are all available on the Company's profile page on SEDAR at www.sedar.com. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. FORWARD-LOOKING STATEMENTS This press release may contain certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") related to future events or Plurilock's future business, operations, and financial performance and condition. [ MORE ] |
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Plurilock Security Solutions Inc.
Victoria (InfoTech)
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