Plurilock Security Inc said it has entered into an agreement with Leede Jones Gable Inc, as the lead underwriter and sole bookrunner, under which it has agreed to purchase, on a bought-deal basis, 8,000,000 common shares at a price of $0.50 each for gross proceeds to the company of $4 million.
The company said it intends to use the net proceeds from the offering for general working capital, research and development, marketing and general corporate purposes.
Plurilock has also granted the underwriter an over-allotment option, exercisable in part or in whole at the underwriter's sole discretion, at any time beginning on the closing of the offering until 30 days following the closing, to purchase up to that number of additional common shares as is equal to 15% of the aggregate number of common shares sold in the offering to cover over-allotments, if any.
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The common shares will be offered in each of the provinces of Canada under the company's base shelf prospectus dated May 31, 2021; in the United States (as such terms are defined in Rule 144A under the US Securities Act of 1933, as amended) on a private placement basis under available exemptions from registration requirements of the US Securities Act and applicable US state securities laws; and in other offshore jurisdictions under available prospectus or registration exemptions in accordance with applicable laws.
The underwriters shall be paid a cash commission equal to 7% of the aggregate gross proceeds of the offering, other than in respect of any purchasers pursuant to a mutually agreed 'President's List' on which the cash commission is equal to 3.5%, payable in cash, and underwriters options exercisable at any time up to 36 months following the closing date to acquire the number of common shares equal to 7% of the aggregate number of those issued under the offering, other than in respect of any purchasers pursuant to the President's List on which the underwriters options shall be 3.5%, at an exercise price equal to the issue price.
The closing of the offering is expected to occur on or about November 10, 2021, and is subject to the company receiving all necessary regulatory approvals, including the approval of the Toronto Venture Exchange.
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.
The company offers world-class IT and cybersecurity solutions through its Solutions Division, paired with proprietary, AI-driven and cloud-friendly security through its Technology Division. Together, the Plurilock family of companies delivers persistent identity assurance with unmatched ease of use.
Contact the author at jon.hopkins@proactiveinvestors.com