Mr. Robert Kiesman reports
LIBBY K ANNOUNCES COMPLETION OF PLURILOCK'S
OVERSUBSCRIBED BRIDGE FINANCING
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
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
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
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.
We seek Safe Harbor.
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