Plurilock Security Inc. (TSX-V:PLUR) said it has closed the first tranche of a non-brokered private placement financing of 8,668,123 units at a price of $0.14 each for aggregate gross proceeds of $1,213,537.22.
Each unit in the offering consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder to acquire one additional share at a price of $0.25 per warrant share until December 21, 2024.
Plurilock said it intends to use the proceeds raised from the offering for general corporate purposes. The company added that it expects to close one or more additional tranches of the offering.
READ: Plurilock Security says Plurilock CloudCodes listed in recent Google Cloud Case Study
In connection with the offering, the company paid arm's length finders an aggregate of $54,826.62 and issued an aggregate of 391,618 warrants, representing 7% of the proceeds raised from those purchasers introduced by such finder and 7% of the total number of units sold to investors introduced by such finder. Each finder's warrant provides that such finder may acquire common shares of the company at a price of $0.14 per finder's warrant share until December 21, 2024.
The offering was completed under the listed issuer financing exemption under Part 5A of National Instrument 45-106 Prospectus Exemptions and therefore the securities issued are not be subject to a hold period in accordance with applicable Canadian securities laws.
The securities issued under the offering have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, US persons in the absence of US registration or an applicable exemption from the US registration requirements.
Consulting agreement signed; shares issued
Plurilock also announced that it has entered into a consulting services agreement with Karlsson Group Limited, under which Karlsson will undertake a comprehensive European exposure and awareness campaign for the company for a period of six months. Under the terms of the consulting agreement, the company will pay Karlsson €75,000.
The company also said that under the indenture with Computershare Trust Company of Canada dated August 15, 2022, governing the 10% unsecured convertible debentures in the principal amount of $1,245,000 previously issued on August 15, 2022, and the 10% unsecured convertible debentures in the principal amount of $285,000 previously issued on September 20, 2022, Plurilock will issue shares in satisfaction of interest payments on the outstanding debentures.
The company will issue an aggregate of $55,036 worth of shares at the closing market price on December 30, 2022, to holders of the debentures in satisfaction of an aggregate of $55,036 in interest payable as of December 31, 2022.
Issuance of the shares is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the TSX Venture Exchange. All securities issued in connection with the interest payments will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.
Plurilock provides identity-centric cybersecurity for today's workforces. The Plurilock family of companies enables organizations to operate safely and securely while reducing cybersecurity friction. Plurilock offers world-class IT and cybersecurity solutions through its Solutions Division, paired with proprietary, AI-driven and cloud-friendly security through its Technology Division.
Contact the author at jon.hopkins@proactiveinvestors.com