Plurilock Security Inc. (TSX-V:PLUR) has announced the appointment of Ali Hakimzadeh to its board of directors as executive chairman as the provider of cybersecurity solutions begins its business transformation plan.
The company highlighted that Hakimzadeh has a background in capital markets and mergers and acquisitions and brings more than 25 years of experience in investment banking, merchant banking, and capital market advisory experience to the position.
He most recently served as the executive chairman of the board at HS Govtech Solutions, a company that sold software to state, municipal, and local governments in North America.
"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," Plurilock CEO Ian Paterson said.
Hakimzadeh replaces outgoing director and chairman Robert Kiesman.
Meanwhile, Plurilock said its board of directors has approved a 10:1 share consolidation to optimize its capital structure and attract financing.
In connection with the share consolidation, Plurilock said it will raise approximately $3 million.
Proceeds from the fundraising will be used to support the company’s focus on its profit centers, including providing working capital in the VAR to fuel growth and hiring additional sales and sales support staff.
Post-consolidation, the company also intends to settle up to $500,000 of payables through the issuance of shares.
It also intends to reprice and induce the conversion of its $1,520,000 of outstanding convertible debentures, the terms of which will be determined in the context of the market post-consolidation.
"Our focus over the course of 2024 will be on profitable growth and to improve Plurilock's balance sheet," Paterson said.
"We will invest in the growth centers of the business, with the strong aim to continue to achieve positive margin growth throughout the year."