Mr. Ian Paterson reports
PLURILOCK WELCOMES NEW EXECUTIVE CHAIR AND BEGINS BUSINESS TRANSFORMATION PLAN
Plurilock Security Inc. has provided information on its corporate transformation
plan.
Appointment of executive chairman
The company is pleased to announce 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-per-cent premium to the market
price prior to announcement. Mr. Hakimzadeh replaces outgoing director and chairman
Robert Kiesman.
"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, chief executive officer of Plurilock.
Share consolidation
To optimize the capital structure of the company and to attract financing, the board of
directors has approved a share consolidation at a ratio of one postconsolidated share
for every 10 preconsolidated shares. 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.
Financing
In connection with the share consolidation, the company will be undertaking a
financing to raise approximately $3-million. The offering will be priced
in the context of the market and issued on a postconsolidated basis.
Capital raised through this transaction will be used to support the company's increasing
focus on its profit centres, including use for:
-
Providing working capital in the VAR to fuel growth;
- Hire additional sales and sales support staff.
"Our focus over the course of 2024 will be on profitable growth and to improve
Plurilock's balance sheet," says Mr. Paterson. "We will invest in the growth centres of the
business, with the strong aim to continue to achieve positive margin growth throughout
the year."
Debt settlement
The company 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 postconsolidated basis.
Debenture repriced and inducement
The company also announces its intention to induce conversion of its $1.52-million 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 postconsolidated basis.
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 Multilateral Instrument 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.
Management believes that the transactions comprising the business transformation will
benefit all shareholders as the company continues to ramp up sales and business
activity.
About Plurilock
Security Inc.
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 its expertise to aid clients in
defending against, detecting and preventing costly data breaches and cyberattacks.
We seek Safe Harbor.
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