Scope Technologies to Acquire Cloud Codes, Expanding Quantum-Secure Authentication & Storage Ecosystem

Rhea-AI Summary

Scope Technologies (OTCQB: SCPCF) has entered into an agreement to acquire Cloud Codes, a subsidiary of Plurilock Security Inc., for CAD $1.78 million. The transaction includes CAD $100,000 in cash and 4.2 million common shares at $0.40 per share.

Cloud Codes, founded in 2011, provides secure Single Sign-On (SSO) and distributed storage solutions, serving 270 business clients with 88,000 end-users globally. The company generated CAD $673,012 in revenue and CAD $228,131 in net income for 2025.

Post-acquisition, Cloud Codes will be rebranded under the QSE Group ecosystem, integrating quantum-secure infrastructure with identity lifecycle management to create the world's first commercially deployed quantum-resistant SSO platform.

Positive

• None.

Negative

• Significant share dilution with issuance of 4.2 million new common shares
• Transaction closing subject to multiple regulatory approvals
• Integration risks associated with rebranding and technology merger

VANCOUVER, British Columbia, Aug. 20, 2025 /PRNewswire/ -- Scope Technologies Corp. (CSE: SCPE) (OTCQB: SCPCF) (FSE: VN8) ("Scope Technologies" or the "Company") announced it has entered into an asset purchase agreement (the "Agreement") with Plurilock Security Inc. ("Plurilock"), a company listed on the TSX Venture Exchange, to acquire its subsidiary Plurilock Security Private Limited ("Cloud Codes"), an Indian corporation founded in 2011 with a proven track record in secure Single Sign-On ("SSO") and distributed storage solutions.

"By bringing the Cloud Codes authentication into the Scope Technologies family and adding QSE—our quantum‑resilient protection layer—we're delivering on our mission to provide a global 'Future Secured' solution with seamless, scalable, quantum‑secure authentication," said Ted Carefoot, CEO of Scope Technologies. "With full ownership of our infrastructure, we can innovate faster and deliver enterprise‑grade protections that future‑proof authentication against quantum threats. Trust First."

Highlights of the Proposed Acquisition

• Cloud Codes currently supports 270 business clients and 88,000 end-users.
• Global user base: 80% India, 13% Europe, 7% United States.
• Annual revenues (unaudited): CAD $673,012 (2025) and CAD $723,487 (2024).
• Net income (unaudited): CAD $228,131 (2025).
• Cloud Codes will be rebranded under the QSE Group ecosystem.

This acquisition represents a strategic milestone in Scope's mission to integrate its quantum-secure ecosystem under the QSE Group. Upon completion, Cloud Codes' proprietary distributed storage middleware will anchor QSE's decentralized cloud backbone and serve as the foundation for what is intended to be the world's first commercially deployed quantum-resistant Single Sign-On (SSO) platform.

Terms of Transaction

Under the terms of the Agreement, Scope Technologies has agreed to acquire Cloud Codes, including any other "Cloud Codes" assets owned by Plurilock. In consideration, the Company has agreed to pay Plurilock CAD $100,000 and issue a total of 4,200,000 common shares (the "Consideration Shares") at a deemed price of $0.40 per share. The total consideration for Cloud Codes is CAD $1,780,000.

The Consideration Shares may be subject to a restriction on resale for a period of four months from the date of issue.

Closing of the transaction is subject to approval of the TSX Venture Exchange for Plurilock, approval of the Canadian Securities Exchange for Scope Technologies, and such other customary conditions required for similar transactions.

To the knowledge of Scope Technologies, none of the directors, officers, or other insiders of Plurilock are insiders of Scope Technologies or own any securities of Scope Technologies.

Anticipated Integration Plans After Closing

Scope Technologies plans to rebrand the Cloud Codes platform under the QSE name and integrate it seamlessly into the QSE product stack. Future releases are expected to include quantum-secure SSO services bundled with storage offerings, targeting regulated enterprises, banking, healthcare, and organizations requiring long-term data integrity.

In the coming months, Scope Technologies intends to provide further updates on enterprise-grade product tiers, compliance certifications, and expanded features such as identity federation, multi-factor authentication (MFA), and cryptographic key rotation tailored for post-quantum assurance.

With NIST ratifying quantum-resistant encryption standards (CRYSTALS-Kyber, Dilithium, SPHINCS+) in 2024 and updating others in 2025–2026, market readiness is accelerating. Meanwhile, leading vendors are embedding post-quantum cryptography into Zero-Trust and VPN products, underscoring the urgent need for quantum-safe identity management solutions.

Scope Technologies' planned vertical ownership of both quantum-secure infrastructure and identity lifecycle management would position it ahead of traditional SSO vendors and among the first enterprises offering lag-free, post-quantum authentication at scale.

About Scope Technologies

Scope Technologies is a leader in quantum-secure infrastructure, specializing in protecting sensitive data with innovations in post-quantum storage and authentication. Through QSE Group, Scope is developing solutions to meet the growing enterprise demand for cryptographic resilience, empowering organizations to safeguard critical systems today while preparing for the quantum era.

About Cloud Codes

Founded in 2011, Cloud Codes has built a strong reputation for delivering secure Single Sign-On (SSO), identity management, and distributed storage solutions for enterprises worldwide. Serving approximately 270 companies and 88,000 users across multiple industries, Cloud Codes provides scalable, high-availability platforms trusted for their flexibility, seamless integration, and compliance with leading global security standards.

LinkedIn: scope-technologies-corp
Facebook: Scope Technologies Corp
Twitter: @ScopeTechCorp

Contact Information:
Ted Carefoot, CEO
Scope Technologies Corp.
Email: ted@scopetech.ai
Phone: +1 604-416-1720
Website: www.scopetechnologies.io, https://qse.group/

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 latest management discussion and analysis, 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. 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.

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SOURCE Scope Technologies Corp.

FAQ

What is the total value of Scope Technologies' acquisition of Cloud Codes?

The total acquisition value is CAD $1.78 million, consisting of CAD $100,000 in cash and 4.2 million common shares at $0.40 per share.

How many clients and users does Cloud Codes currently serve?

Cloud Codes serves 270 business clients with 88,000 end-users globally, distributed across India (80%), Europe (13%), and United States (7%).

What are Cloud Codes' revenue and profit figures for 2025?

Cloud Codes reported unaudited revenue of CAD $673,012 and net income of CAD $228,131 for 2025.

How will Scope Technologies integrate Cloud Codes into its business?

Cloud Codes will be rebranded under the QSE Group ecosystem and integrated into Scope's quantum-secure infrastructure to create the world's first commercially deployed quantum-resistant SSO platform.

What restrictions apply to the shares issued in the Cloud Codes acquisition?

The 4.2 million Consideration Shares may be subject to a four-month resale restriction period from the date of issue.

What regulatory approvals are needed for the Cloud Codes acquisition?

The transaction requires approval from both the TSX Venture Exchange for Plurilock and the Canadian Securities Exchange for Scope Technologies.