VANCOUVER, BRITISH COLUMBIA—Plurilock Security Inc. (TSXV: PLUR) (OTCQB: PLCKF) and related subsidiaries (“Plurilock” or the “Company”), an identity-centric cybersecurity solutions provider for workforces, is pleased to provide the following corporate update and strategy outlook for 2022.
“We anticipate 2022 to be a transformational year for PlurilockTM as we scale our technology offerings to a diverse and growing base of enterprise customers,” said Ian L. Paterson, CEO of Plurilock. “As the global cybersecurity market continues to shift toward zero trust architecture, we feel our suite of continuous authentication, behavioral-biometric products will continue to gain traction in the face of the growing cyber threat. We have invested in this segment of our business by acquiring distribution through our subsidiary, Aurora Systems Consulting Inc., and training our sales staff to accelerate our pipeline growth to secure the direction of Plurilock.”
Paterson added, “For the duration of 2022, we plan to focus on advancing three primary objectives: sales of Plurilock’s high-margin zero trust identity platform, developing new technology that expands our competitive moat, and strategically looking at accretive acquisition opportunities we feel will help us scale. Given our comprehensive growth strategy, we intend to deliver ambitious results with the goal of improving our financial performance, as well as continuing to solidify our role as a cybersecurity technology leader”.
Plurilock plans to achieve its primary corporate objectives by executing the following growth initiatives:
Focus on Sales of High-Margin, Proprietary Products
With the number of cyberattacks continuing to increase year over year, cybersecurity has become essential for private and public entities, with 50% of large enterprises spending $1 million or more each year on security.1 In recent weeks, the White House and the U.S. Office of Management and Budget have announced that federal agencies will be required to adopt zero trust technology and policies by fiscal year 2024 and a recent survey of security and risk professionals stated that 80% of their organizations intend to implement zero trust in 2022.2,3
Plurilock plans to act on this growing demand for innovative cybersecurity technology offerings to drive revenue growth and margin expansion. The Company is in active discussions with organizations across North America for both Plurilock ADAPTTM and Plurilock DEFENDTM, from the Company’s existing sales strategy as well as the distribution network through the Aurora acquisition.
Growing Distribution Channels
As part of the Company’s plan to increase distribution channels to attract software sales, Plurilock through its wholly-owned subsidiary Aurora Systems Consulting, Inc. has multiple U.S. government contracting vehicles, providing access to many federal civilian and defense agencies, and over 170 state agencies in California.
Plurilock plans to continue leveraging existing distribution streams to cross-sell its Technology Division’s proprietary AI-driven, identity-centric continuous authentication solutions, which generated gross margins of 84.1% for the nine months ended September 30, 2021.
Overview of Technology Division’s Products:
Plurilock ADAPT – Invisible Multi-Factor Authentication (MFA) Solution
Plurilock DEFEND – Behavioral-Biometric, Continuous Authentication Solution
Additionally, the Company continues to demonstrate strong sales growth in its Solutions Division over the last several weeks, highlighted by US$1.16 million in sales captured from all announced contracts and orders since January 2022 (as of February 10, 2022).
Product Innovation – Zero Trust Technology
To combat the growing cyber threat, organizations have made a shift toward implementing zero trust solutions and demand for these products has increased significantly, highlighted by the growing global zero trust security market, which is expected to generate $66.74 billion in revenue by 2027.4 Plurilock intends to capitalize on the opportunities within this marketplace by innovating new zero trust technology.
The Company also intends to increase its competitive moat through patent filings and developing new trade secrets to advance Plurilock’s cutting-edge behavioral biometrics technology.
Plurilock’s technology is backed by research from a world-class data science team and leading pioneers in the behavioral biometrics space. The Company looks to strengthen its product portfolio with a focus on zero trust. Plurilock currently holds six provisional and issued patents through the U.S. Patent and Trademark Office, including a recently submitted non-provisional U.S. patent application for new technology enhancements in combatting insider threats, previously announced on January 19, 2022.
Accretive M&A Opportunities
Following the Company’s acquisition of Aurora Systems Consulting Inc. in April 2021, Plurilock has established a pipeline of M&A targets including the October 2021 announced definitive asset purchase agreements to acquire certain assets of CloudCodes Software Private Limited, a leading Indian-based cloud access security broker with a global customer base.
Plurilock continues to evaluate new M&A opportunities to grow its customer base, expand its AI and machine learning technology capabilities and leverage new revenue and cost synergies. Overall, the Company plans to acquire accretive and profitable cybersecurity companies with top-tier customers and products in order to rapidly extend its distribution channels and offer enhanced technology offerings.
The Company will explore alternate financing mechanisms, including a combination of debt, earn-outs, and rewards-based compensation to fulfill acquisition mandates that could arise in the future, while focusing on minimizing shareholder dilution.
Well-Capitalized Balance Sheet
With $7.05 million in cash (as of September 30, 2021), Plurilock is well-positioned to execute on all growth initiatives to expand its footprint in the global cybersecurity industry.
Plurilock provides identity-centric cybersecurity for today’s workforces. The Plurilock family of companies enables organizations to operate safely and securely while reducing cybersecurity friction. Plurilock offers world-class IT and cybersecurity solutions through its Solutions Division, paired with proprietary, AI-driven and cloud-friendly security through its Technology Division. Together, the Plurilock family of companies delivers persistent identity assurance with unmatched ease of use.
For more information, visit https://www.plurilock.com or contact:
Ian L. Paterson
Chief Executive Officer
Chief Financial Officer
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 “is in”, “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, the success of the Company in obtaining new or extended contracts or orders; the Company’s ability to maintain existing customers or develop new customers; the Company’s ability to successfully integrate acquisitions of other businesses
and/or companies or to realize on the anticipated benefits thereof; and unforeseen events, developments, or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. 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.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.