SCOPE AI Closes Quantum Security Technology Acquisition

Rhea-AI Summary

Scope AI Corp (CSE: SCPE) (OTCQB: SCPCF) has closed its acquisition of QSE Technology from Ovryde , as announced on July 9, 2024. This acquisition enables Scope to provide quantum-resilient security solutions to retail and institutional customers, addressing the growing threat posed by quantum computing to traditional encryption methods. The QSE Technology offers robust security solutions that are easily integrated into existing infrastructures.

CEO James Young highlighted that the quantum cryptography market is currently valued at $11 billion for 2024 and is projected to grow to $126 billion by 2033. This acquisition positions Scope AI at the forefront of the digital security industry, ready to capitalize on the increasing demand for advanced quantum-resilient security solutions.

Positive

• Acquisition of QSE Technology strengthens Scope AI's position in quantum-resilient security solutions
• Enables Scope to address current and future quantum computing threats to data security
• Quantum cryptography market projected to grow from $11 billion in 2024 to $126 billion by 2033
• Positions Scope AI to capitalize on increasing demand for advanced quantum-resilient security solutions

Negative

• None.

News Market Reaction

-0.68%

1 alert

-0.68% News Effect

On the day this news was published, SCPCF declined 0.68%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

VANCOUVER, BC, Aug. 7, 2024 /PRNewswire/ -- Scope AI Corp. (CSE: SCPE) (OTCQB: SCPCF) (FSE: VN8) ("Scope" or the "Company") is pleased to announce that it has closed its previously announced acquisition (the "Acquisition") of the QSE Technology (see news release dated July 9, 2024), pursuant to a technology agreement dated July 9, 2024 (the "Technology Agreement") with Ovryde Ltd. ("Ovryde") whereby Ovryde transferred its ownership and rights relating to delivery and application of quantum resilient entropy (the "QSE Technology"). 

The Acquisition enables Scope to provide retail and institutional customers with extremely robust security solutions that are easy to build upon or integrate into existing infrastructures. As quantum computing becomes more mainstream and rapidly advances, the potential for traditional encryption methods to be rendered obsolete grows, posing significant risks to data security worldwide. Our QSE Technology ensures that customers are prepared for the current, imminent, and ever-evolving threats posed by quantum computing, safeguarding their digital assets with state-of-the-art quantum-resilient solutions. This positions Scope at the forefront of the digital security industry, ready to address the current and future quantum threat and drive significant growth for the company.

James Young, CEO of Scope AI Corp, commented, "The quantum cryptography market is currently at $11 billion for 2024, and is projected to grow to $126 billion by 2033.^[1] This tremendous growth highlights the increasing demand for advanced quantum-resilient security solutions, and with our acquisition of QSE Technology, Scope AI is well-positioned to capitalize on this market."

About the QSE Technology

The QSE Technology product suite offers API-based quantum-resilient entropy as a service and encrypted cloud, on-premise, and decentralized storage solutions. At its core, the platform provides a proprietary high-performance data-pipeline that can scale vertically and horizontally to protect private, business, and government applications with highly sensitive data in transit and at rest. This innovative technology ensures comprehensive protection against both current cyber threats and future quantum-computing decryption attacks. With its ease of integration, cost efficiency, and scalability, the QSE Technology product suite uniquely positions Scope to protect digital assets across a wide range of industries, ensuring robust security and peace of mind for our customers.

The Acquisition

Pursuant to the terms of the Technology Agreement and in consideration of the QSE Technology, Scope paid Ovryde $400,000 and issued 2,800,000 common shares of the Company (the "Consideration Shares") to Ovryde. The Consideration Shares are subject to a four month resale restriction period and additional voluntary restrictions on resale as follows: (i) 560,000 Consideration Shares will be subject to no additional restrictions, (ii) 560,000 Consideration Shares will be subject to restrictions on resale for a period of three (3) months from the date of issue, (iii) 560,000 Consideration Shares will be subject to restrictions on resale for a period of six (6) months from the date of issue, (iv) 560,000 Consideration Shares will be subject to restrictions on resale for a period of nine (9) months from the date of issue, and (v) 560,000 Consideration Shares will be subject to restrictions on resale for a period of twelve (12) months from the date of issue.

About Scope AI Corp.:

Scope AI Corp. is a leading technology company headquartered in Vancouver, British Columbia, dedicated to advancing the field of artificial intelligence. With a focus on visual recognition and neural network technology, Scope is committed to empowering businesses and industries with innovative solutions that drive growth and innovation.

For more information please visit Scope AI Corp., info@scopetech.ai, or follow along on social media.

LinkedIn: scope-ai-corp

Facebook: Scope AI Corp

Twitter: https://twitter.com/ScopeAICorp

Contact Information 
James Young, Chief Executive Officer
+1 604- 416-1720
james@scopetech.ai

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements that constitute forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements in this news release that are not purely historical statements of fact are forward-looking statements and include statements regarding beliefs, plans, expectations, future, strategy, objectives, goals and targets, and more specifically, the use of proceeds of the Offering. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "aim", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks and are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, those risks and assumptions described in the Company's prospectus dated August 10, 2022, a copy of which is available under the Company's profile on SEDAR at www.sedar.com. While Scope considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions, continued satisfaction of Canadian Securities Exchange requirements, product safety and recalls, regulatory compliance and risks associated with the Company's business. For more information on the risks, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the risk factors set out in the Company's prospectus dated August 10, 2022, a copy of which is available under the Company's profile on SEDAR at www.sedar.com. Forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement.

The Canadian Securities Exchange has in no way passed upon the merits of the business of the Company and has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.

[1] https://www.marketresearchfuture.com/reports/quantum-cryptography-market-4836?utm_term=&utm_campaign=&utm_source=adwords&utm_medium=ppc&hsa_acc=2893753364&hsa_cam=20620819662&hsa_grp=157916489681&hsa_ad=676281546682&hsa_src=g&hsa_tgt=dsa-2222020462769&hsa_kw=&hsa_mt=&hsa_net=adwords&hsa_ver=3&gad_source=1

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SOURCE Scope AI Corp.

FAQ

What is the significance of Scope AI's acquisition of QSE Technology?

The acquisition enables Scope AI to provide quantum-resilient security solutions, addressing the growing threat of quantum computing to traditional encryption methods and positioning the company at the forefront of the digital security industry.

What is the projected growth of the quantum cryptography market according to Scope AI (SCPCF)?

According to Scope AI, the quantum cryptography market is valued at $11 billion in 2024 and is projected to grow to $126 billion by 2033, indicating significant growth potential in the industry.

How does the QSE Technology acquisition benefit Scope AI's customers?

The QSE Technology allows Scope AI to offer robust security solutions that are easy to build upon or integrate into existing infrastructures, preparing customers for current and future threats posed by quantum computing.

When did Scope AI (SCPCF) close the acquisition of QSE Technology?

Scope AI closed the acquisition of QSE Technology on August 7, 2024, as announced in their press release.