Plurilock Security Inc announced that it was listed as a sample vendor in the Gartner Hype Cycle for Digital Identity.
Gartner, a management consulting firm, included Plurilock as a sample vendor under Passive Behavioral Biometrics in their recent report.
Plurilock CEO Ian Paterson called the inclusion a validation that the company is providing its customers with “superior passive behavioural biometric technology.”
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"We aim to continue developing new advanced products with an emphasis of zero-trust architecture in order to become a leading global provider of cybersecurity solutions,” the CEO added.
According to Gartner, passive behavioral biometrics can elevate trust without interrupting the user journey, thus enhancing user experience by generating recognition signals from a person's normal interactions with an endpoint device at login or throughout each session.
"Digital identity depends upon authentication that can provide credence in an identity claim (sufficient to bring account takeover risks within an organization's risk tolerance), ideally without adding unnecessary friction to the user journey,” the consulting firm said in a statement from Plurilock.
First tranche of financing closed
Separately, Plurilock announced the closing of the first tranche of its previously announced non-brokered private placement consisting of 1,245 convertible debenture units at a price of $1,000 per unit, for aggregate gross proceeds to the company of $1,245,000.
The company said it intends to use the net proceeds received from the first tranche towards its acquisition pipeline and for general corporate purposes.
Plurilock noted that it intends to complete several accretive acquisitions that generate cash flow, improve gross margins and provide the opportunity for unlocking revenue and cost synergies while bolstering its zero-trust technology portfolio.
Each unit in the private placement consisted of C$1,000 principal amount of 10% unsecured convertible debenture maturing on August 15, 2026, subject to any forced conversion in certain circumstances; and 500 common share purchase warrants.
Each warrant entitles the holder to acquire one common share of the company at an exercise price of $0.40 each until August 15, 2024. The warrants are subject to an accelerated expiry so that if at any time following the date of issuance, the weighted average daily trading price of the common shares of the company on the TSX Venture Exchange (TSXV) is or exceeds C$0.50 for any 10 consecutive trading days, the holder may be given notice, by way of a news release, that the warrants will expire 30 days following the date of such notice.
The debentures are convertible at the holder's option into common shares of the company at a conversion price of $0.285 per debenture share.
In connection with the first tranche, the company paid certain eligible persons a cash commission in the aggregate of approximately $21,300; and an aggregate of 74,735 finder's warrants. Each finder's warrant is exercisable into one common share at a price of $0.285 per share until August 15, 2024.
The company said it expects to close the second tranche of the non-brokered private placement on or about August 31, 2022. The closing of the balance of the financing is subject to regulatory approvals, including approval of the applicable Canadian securities regulatory authorities and the TSXV.
More balanced approach to growth
Plurilock also announced a strategic push towards profitability. The company said it believes that this plan can be executed while continuing to grow and maintaining a best-in-class customer experience.
As part of this push, Plurilock announced that it is shifting to a more balanced approach to growth and profitability in the immediate future. A large part of this approach includes a focus on realizing synergies from recent acquisitions and continuous careful allocation of costs.
"We have a clear plan to unlock our operating leverage and bring the company to breakeven," Ian L. Paterson, CEO of Plurilock. "Given market conditions, capital allocation is more critical than ever. We are very well positioned to take advantage of strong performers who are embedded in different parts of the Plurilock organization and will be counting on these individuals to drive the continued growth and success of the business."
As a result of this shift, the company said Garr Stephenson will be leaving his role as chief revenue officer to pursue other opportunities. Stephenson will be leaving the company in Q3 following a thorough handover of responsibilities.
Paterson noted: "Our leadership team is working hard to continue to spread awareness about our products and to deliver the best experience possible to our customers. We remain committed to the initiatives underway and thank Garr for his contributions. We expect a smooth transition across our sales teams as we continue to focus on serving our customers and helping organizations manage identity authentication."
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.
--Updated with Gartner news--
Contact the author at jon.hopkins@proactiveinvestors.com