Independent Trading Group Engaged as Market Maker, Think Ink Engaged as Marketing Firm
Over $2 million in warrant exercises from supportive shareholders add to strong balance sheet
Warrant exercises further solidifies Company's balance sheet post $5.5 million raise, which closed in April 2024
The Company also has access to a $10.4 million line of credit
Independent Trading Group to create liquidity for TSX Venture Exchange listed shares
Vancouver, British Columbia--(Newsfile Corp. - August 28, 2024) - Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) ("Plurilock" or the "Company"), a global cybersecurity services and solutions provider, announces that it has closed on exercises of certain warrants to purchase 8,038,946 shares of the Company's common stock at an (average) exercise price of $0.27 per share for gross proceeds of $2,190,949. This transaction follows the closing of Plurilock's private placement of shares in April 2024 for gross proceeds of $5.5 million.
"This $2 million of proceeds from the warrant exercises further strengthens our balance sheet beyond our recent $5.5 million private placement," said Ian L. Paterson, CEO of Plurilock. "We continue to see strength in our pipeline, which should lead to higher gross margin and better financial metrics in future quarters. We have rationalized our cost structure and are driving towards profitability".
Engagement of Independent Trading Group Market Making
Plurilock also announces that it has appointed Independent Trading Group, Inc. ("ITG") as a market maker for shares traded on the TSX Venture Exchange (the "TSXV") under the ticker "PLUR". Under the terms of an agreement dated August 27, 2024, ITG will trade the common shares of Plurilock on the TSXV in compliance with the policies and guidelines of the TSXV and other applicable legislation with the objective of maintaining a reasonable market and improving the liquidity of the common shares of Plurilock. The capital used for the market-making activities will be provided by ITG.
Under the terms of the agreement, ITG will receive $6,500 per month, plus applicable taxes and payable monthly in advance. The agreement has an initial term of one month. Thereafter, the agreement will automatically renew for successive one month terms until terminated by either party upon thirty days' prior written notice. There are no performance factors contained under the agreement nor will ITG receive any shares or options of Plurilock as compensation for its services. ITG and Plurilock are unrelated and unaffiliated entities and, at the time of the agreement for ITG's services, to the knowledge of the Company, neither ITG nor its principals have an interest, directly or indirectly, in the securities of the Company. The agreement is subject to TSXV approval.
Engagement of Think Ink
Plurilock also announces that it has entered into a public relations marketing agreement dated August 12, 2024 (the "Agreement") with Think Ink Marketing Data and Email Services, Inc. ("Think Ink"), to provide public relations services in an effort to increase public awareness of the Company and its products, services, and securities.
The Company has budgeted up to US$250,000 for the marketing services of Think Ink, which may include facilitating the creation and distribution of marketing materials and paid advertisements. The agreement is for a 3-month term (the "Term") commencing upon TSXV approval, with either party having the right to terminate upon 30 days written notice. US$125,000 shall be paid upon receipt of TSXV approval, another US$50,000 will be paid 30 days following receipt of TSXV approval and US$50,000 will be paid 60 days following receipt of TSXV approval. At the end of each Term, the Company may extend the term for another 30 days by paying an additional US$25,000. The agreement may be renewed by mutual agreement of the parties.
Think Ink and Plurilock are not related parties and operate at arm's length. Neither Think Ink nor its principals have any interest in the Company's securities, directly or indirectly, or any right or intent to acquire such an interest. No stock options are being granted to Think Ink under the terms of the Agreement.
Contact information for Think Ink is Think Ink Marketing Data & Email Services LLC, 3308 W. Warner Ave., Santa Ana, California 92704; Phone: 888-808-2161; Email: [email protected].
About Plurilock
Plurilock sells cybersecurity solutions to the United States and Canadian Federal Governments along with Global 2000 companies. Through these relationships, Plurilock sells its unique brand of Critical Services-aiding clients with our expertise to defend against, detect, and prevent costly data breaches and cyberattacks.
About Independent Trading Group
Independent Trading Group, Inc. is a Toronto based IIROC dealer-member that specializes in market making, liquidity provision, agency execution, ultra-low latency connectivity, and bespoke algorithmic trading solutions. Established in 1992, with a focus on market structure, execution and trading, ITG has leveraged its own proprietary technology to deliver high quality liquidity provision and execution services to a broad array of public issuers and institutional investors.
About Think Ink
Think Ink is a California-based marketing firm established in 1991 that provides its customers with a complete range of marketing services that includes data appending, e-mail marketing and pay-per-click on-line banner/native ads. Think Ink helps its clients to reach a large network of potential investors.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release may contain certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") related to future events or Plurilock's future business, operations, and financial performance and condition. Forward-looking statements normally contain words like "will", "intend", "anticipate", "could", "should", "may", "might", "expect", "estimate", "forecast", "plan", "potential", "project", "assume", "contemplate", "believe", "shall", "scheduled", and similar terms. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions, and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances. Although management believes that the forward-looking statements herein are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Plurilock's business. Additional material risks and uncertainties applicable to the forward-looking statements herein include, without limitation, the impact of general economic conditions, and unforeseen events and developments. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. Many of these factors are beyond the control of Plurilock. All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this press release are made as at the date hereof, and Plurilock undertakes no obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws. Risks and uncertainties about the Company's business are more fully discussed under the heading "Risk Factors" in its most recent Annual Information Form. They are otherwise disclosed in its filings with securities regulatory authorities available on SEDAR+ at www.sedarplus.ca.
