FULL DISCLOSURE: This is sponsored content for Plurilock.
Plurilock Security (TSXV: PLUR) is reporting this morning that it has further solidified its balance sheet through the exercise of warrants by shareholders. The warrants exercised relate to a $5.5 million financing conducted by the company back in April.
A total of 8.0 million warrants were exercised by holders in recent weeks, resulting in gross proceeds of $2.2 million for Plurilock. The warrants were exercised at an average price of $0.27 per share.
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The funds from the exercised warrants are said to further solidify Plurilock’s balance sheet, in addition to the $5.5 million recently raised. The company also has access to a $10.4 million line of credit should it need further liquidity.
“This $2 million of proceeds from the warrant exercises further strengthens our balance sheet beyond our recent $5.5 million private placement. 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,” commented CEO Ian L. Paterson.
READ: Plurilock To Review U.S. Strategic Options, Engages Clear Street Investment Banking
The development follows the company earlier this week indicating it has engaged Clear Street Investment Banking for the purpose of reviewing strategic options with regards to the U.S. market. The strategic review is intended to explore avenues that will bolster visibility of Plurilock while also attracting a larger investment base.
“We believe that U.S. capital markets and acquisitions strategies better support Plurilock’s growth and valuing the platform properly with growth focused investors who will support it,” said Paterson of the review.
Plurilock Security last traded at $0.70 on the TSX Venture.
FULL DISCLOSURE: Plurilock Security is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Plurilock Security. The author has been compensated to cover Plurilock Security on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
