Plurilock Security Inc. Announces Sale of CloudCodes Assets to Scope Technologies Corp.

Rhea-AI Summary

Plurilock Security (OTCQB:PLCKF) has announced the sale of its CloudCodes business assets to Scope Technologies for total considerations of $1.78 million. The transaction includes $100,000 in cash and 4.2 million common shares of Scope Technologies.

The deal involves the sale of Plurilock Security Private Limited subsidiary and related CloudCodes assets, marking Plurilock's strategic shift from SME markets to focus on large enterprises, government, and Fortune 500 clients. The transaction is expected to close around September 15, 2025, subject to regulatory approvals.

Canaccord Genuity Corp. will receive an advisory fee of $40,000 in Plurilock common shares for the transaction.

Positive

• Strategic realignment to focus on higher-value enterprise and government clients
• Total consideration of $1.78 million from asset sale strengthens balance sheet
• Streamlined operations through divestiture of non-core SME business segment

Negative

• Majority of sale consideration ($1.68M) is in Scope Technologies stock rather than cash
• Loss of revenue stream and market presence in SME segment

• Total considerations of $1,780,000 consisting of cash and stock
• Plurilock has evolved from serving the SME marketplace to focusing on large enterprises and government
• Divestiture streamlines operations and drives core focus to Critical Services

Vancouver, British Columbia--(Newsfile Corp. - August 20, 2025) - Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) and its subsidiary, Plurilock Security Solutions Inc. ("Plurilock" or the "Company"), has entered into a definitive asset purchase agreement dated August 20, 2025 (the "APA") with Scope Technologies Corp. (CSE: SCPE) (OTCQB: SCPCF) ("Scope") to sell certain assets of its CloudCodes business (the "Transaction").

Pursuant to the terms of the APA, Scope has agreed to acquire the Company's subsidiary, Plurilock Security Private Limited, and certain assets relating to the CloudCodes business. In consideration, Scope has agreed to pay the Company $100,000 in cash and issue to the Company a total of 4,200,000 common shares of Scope for total considerations of $1,780,000. The Transaction is subject to customary closing conditions and regulatory approvals. The Company expects to close the Transaction on or around September 15, 2025. This Transaction is an arm's length transaction. In connection with the Transaction, the Company will pay Canaccord Genuity Corp. an advisory fee of $40,000, payable in common shares of the Company, subject to TSXV approval. All of the securities that may be issued in connection with the Transaction will be subject to a hold period under applicable Canadian securities laws of four months and one day from the date of issuance.

"Over the past 3 years, Plurilock has evolved from serving the SME marketplace to focusing on large enterprises, government, and Fortune 500 clients," said Ian L. Paterson, CEO of Plurilock Security. "As a result, the SME segment is no longer core to our strategy. CloudCodes is a strong asset with deep roots in the small and medium business market, and we are pleased to see it continue under Scope Technologies leadership. We are fully aligned in supporting CloudCodes' growth and success, while we continue to streamline our operations and focus on Critical Services. Further details will be available during our second quarter fiscal 2025 financial results webinar later today at 11am ET. "

About Plurilock

Plurilock is a services-led, product-enabled, AI-native cybersecurity company that solves complex cyber problems in high-stakes environments where failure isn't an option. Trusted by Five-Eyes governments, NATO-aligned agencies, and Global 2000 enterprises, we defend critical infrastructure and safeguard the systems that power modern life. Our Critical Services division delivers operational resilience through unmatched expertise, proprietary IP, and AI-driven playbooks. Learn more at plurilock.com.

For more information, visit https://www.plurilock.com or contact:

Ian L. Paterson
Chief Executive Officer
ian@plurilock.com
416.800.1566

Ali Hakimzadeh
Executive Chairman
ali@sequoiapartners.ca
604.306.5720

Sean Peasgood
Investor Relations
sean@sophiccapital.com
647.953.5607

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the TSX Venture Exchange policies) accept 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/263164

FAQ

What is the total value of Plurilock's CloudCodes asset sale to Scope Technologies?

The total consideration for the CloudCodes asset sale is $1.78 million, consisting of $100,000 in cash and 4.2 million common shares of Scope Technologies.

When will Plurilock's CloudCodes asset sale transaction close?

The transaction is expected to close on or around September 15, 2025, subject to customary closing conditions and regulatory approvals.

Why is Plurilock selling its CloudCodes business?

Plurilock is selling CloudCodes as part of its strategic evolution from serving SME marketplace to focusing on large enterprises, government, and Fortune 500 clients, as the SME segment is no longer core to their strategy.

What advisory fees will be paid for the PLCKF CloudCodes transaction?

Canaccord Genuity Corp. will receive an advisory fee of $40,000, payable in Plurilock common shares, subject to TSXV approval.

What are the terms of the share lock-up period for the Plurilock-Scope Technologies deal?

All securities issued in connection with the transaction will be subject to a four-month and one-day hold period under applicable Canadian securities laws from the date of issuance.