Quantum eMotion Corp. and Plurilock Security Inc. have entered into a definitive arrangement agreement under which QeM will acquire all issued and outstanding common shares of Plurilock. The proposed transaction is valued at approximately C$33.8 million and combines QeM’s quantum-secure technologies with Plurilock’s established cybersecurity revenue base, customer relationships, and public-sector channels. The deal represents a significant step toward commercializing quantum-safe security offerings across enterprise and government markets.
Transaction Terms
Under the proposed terms, Plurilock shareholders will receive C$0.084 in cash and 0.0763 of a QeM share for each Plurilock share, implying total consideration of C$0.28 per share. Based on QeM’s 20-day volume-weighted average price of C$2.57 on the TSX Venture Exchange as of September 25, 2026, the transaction values Plurilock at approximately C$33.8 million. The implied value represents a premium of approximately 100% to Plurilock’s 20-trading-day volume-weighted average price over the same period.
Strategic Rationale
QeM expects the acquisition to accelerate its transition from technology development and validation toward a broader commercial cybersecurity business. Plurilock contributes an established revenue base, hundreds of enterprise and government customers, public-sector procurement channels, and AI-driven cybersecurity capabilities. The combined company intends to pursue a disciplined cross-selling and integration strategy focused on customer segments with defined security requirements.
Validation and Technology Integration
QeM continues to advance key technologies through NIST and FIPS validation processes, including its eCore-Q quantum entropy technology and SecureKey Cryptographic Module. Plurilock’s intellectual property in AI-driven risk analysis, authentication, and identity could be combined with QeM’s quantum-safe cryptographic enforcement. Potential future applications include adaptive access control, privileged key administration, dynamic key rotation, and automatic session termination.
Leadership and Governance
Following closing, Francis Bellido, President and Chief Executive Officer of QeM, will lead the combined company as President and Chief Executive Officer. Ian L. Paterson is expected to serve as Executive Vice-President, Cybersecurity & Critical Services, QNC, and President and CEO of Plurilock, while Veera Singh will serve as Senior Vice-President, Finance & Operations, QNC, and CFO and COO of Plurilock. QeM also plans to retain its full existing management team to support product, commercialization, and public-company continuity.
Financing and Conditions
QeM has agreed to provide Plurilock with a secured bridge financing facility of up to C$2,000,000, bearing interest at 8.5% annually. The arrangement agreement includes customary non-solicitation covenants, right-to-match provisions, and a C$1,500,000 reciprocal termination fee, plus up to C$500,000 in expense reimbursement. Completion remains subject to court approval, Plurilock shareholder approval, and applicable regulatory and stock exchange consents.
Approvals and Timeline
The Plurilock board has unanimously approved the transaction after receiving a fairness opinion from Paradigm Capital and a unanimous recommendation from a special committee. The shareholder meeting is expected to take place in November 2026, with closing shortly after if all conditions are satisfied or waived. Following completion, Plurilock intends to delist its shares from the TSX Venture Exchange and cease to be a reporting issuer in Canada.
The proposed acquisition combines QeM’s quantum-safe cryptography and entropy technologies with Plurilock’s commercial reach, AI-driven security capabilities, and established customer base. Plurilock shareholders gain immediate cash consideration and retain exposure to the combined company’s future growth through QeM shares. If completed, the transaction would position the combined organization at the intersection of artificial intelligence and quantum security across Canada, the United States, and NATO markets.