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Libby K Industries Inc
Symbol LBB
Shares Issued 11,100,000
Close 2019-12-19 C$ 0.08
Market Cap C$ 888,000
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Libby K target Plurilock completes $1M financing

2020-02-24 10:31 ET - News Release

Mr. Robert Kiesman reports


Libby K Industries Inc. has provided an update with respect to its proposed qualifying transaction with Plurilock Security Solutions Inc. that was previously announced in its news release dated Jan. 6, 2020.

Plurilock has advised Libby K that it has closed its non-brokered private placement for gross proceeds of approximately $1-million. As noted in the letter of intent (LOI)news release, Plurilock intended on raising $800,000 in the pretransaction financing, but due to strong investor demand, the parties agreed to accept additional investors in order to further Plurilock's growth.

Of the approximately $1-million subscribed for, $817,375 was loaned to Plurilock in secured convertible notes and approximately $182,625 was subscribed in units, at a price of 22.5 cents per unit. A total of 811,665 units were issued. As noted in the LOI news release, each of the notes and units will convert into units of the resulting issuer, reflected a 25-per-cent discount to the listing price of the resulting issuer. Plurilock paid an aggregate of $35,830 in cash as finders' fees in connection with the pretransaction financing, of which $25,300 was paid to PI Financial Corp., $5,400 was paid to Canaccord Genuity Corp. and $5,130 was paid to Haywood Securities Inc.

The proceeds from the pretransaction financing will be used (a) to advance Plurilock's sales and marketing programs; (b) for product enhancements; (c) for expenses related to completion of the proposed transaction; and (d) for general working capital.

Robert Kiesman, chief executive officer of Libby K, stated: "We are greatly encouraged that Plurilock completed its pretransaction financing in such a short period of time and that is was significantly oversubscribed. Clearly, investors recognize the inherent value in this innovative Canadian cyber technology company."

The parties are currently negotiating the terms of a definitive amalgamation agreement, including the terms of a private placement financing of up to $3.2 million in connection with the closing of the proposed transaction. The exact terms of the financing will be mutually agreed upon before the execution of the definitive agreement.

A comprehensive news release with further details of the proposed transaction and the financing will follow in accordance with the policies of the TSX-V. Trading in Libby K's common shares is expected to remain halted until the earlier of completion of the proposed transaction or termination of the letter of intent between Libby K and Plurilock.

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