Quantum eMotion agrees to buy Plurilock for C$33.8M

A takeover would put a quantum-security developer inside a cybersecurity business that already sells to public and private customers. Quantum eMotion Corp. CVEQNC NYSEAMERICANQNC, a Montreal quantum-security developer, signed a Sept. 28 agreement to buy Plurilock Security Inc. CVEPLUR, a Vancouver cybersecurity provider, for about C$33.8 million, the companies said.

Each Plurilock share would receive C$0.084 in cash and 0.0763 QeM shares under the proposed arrangement. The companies valued that combination at C$0.28 per Plurilock share on Sept. 28, 2026. Their stated premium of about 100 per cent uses the 20-trading-day volume-weighted average through Sept. 25, rather than the final price before the announcement.

QeM's U.S. shares NYSEAMERICANQNC closed at US$2.20, up 17.02 per cent on the NYSE American at 4 p.m. EDT on Sept. 28. The release appeared at 4:10 p.m. EDT that day, after the close. Plurilock's Canadian shares CVEPLUR were last displayed at C$0.15 at 3:58 p.m. EDT on Sept. 25; that earlier quote cannot show the market's response to the proposal.

The companies signed a definitive arrangement agreement on Sept. 28 for a proposed purchase of all Plurilock shares. They described a court-approved plan of arrangement under British Columbia's Business Corporations Act as the transaction structure. The C$33.8 million is the announced consideration value for a purchase that remains proposed.

The joint release says Plurilock would bring AI-focused cybersecurity, risk analysis, authentication and identity technology to the combination. QeM's side contributes quantum random number generation and cryptographic tools. The companies say an integration and cross-selling strategy would follow closing, with customer requirements and procurement rules shaping any deployment.

The Share Portion Moves With QeM Stock

The announced consideration is about 30 per cent cash and 70 per cent QeM shares. The cash payment per Plurilock share is stated, while the value of the 0.0763-share component moves with QeM's trading price. A fixed exchange ratio therefore leaves Plurilock holders exposed to QeM stock between the agreement and any closing.

QeM's June 2, 2026, update said it had launched eShield-Q, a platform designed to protect cryptographic operations while they run. The company also said it had initiated FIPS 140-3 validation activities with Lightship Security. Those activities were part of its development program before it announced the Plurilock agreement.

In the Sept. 28 release, QeM said Lightship Security submitted its eCore-Q entropy-source validation package through the production Entropy Source Validation Test System for review under the Cryptographic Module Validation Program. The submission seeks validation under NIST Special Publication 800-90B. Review of a submission is a different stage from completed validation.

Plurilock's Revenue Fell As Margins Rose

Plurilock's Aug. 26, 2026, results give a measure of the operating business in the proposal. June-quarter revenue fell to C$11.28 million from C$16.24 million a year earlier. Gross margin rose to 17.3 per cent from 11.4 per cent. Plurilock attributed the lower sales to its decision to pull back from lower-margin resale activity.

The same quarterly release reported an EBITDA loss of C$268,311 for the quarter, compared with an EBITDA loss of C$1,946,796 a year earlier. Plurilock held C$2.57 million in cash, cash equivalents and restricted cash at June 30, 2026. Operating activities used C$2.11 million during the quarter, a cash figure for holders to set against the narrower EBITDA loss.

The joint release says Plurilock's businesses and predecessor operations have more than 25 years of history and hundreds of public- and private-sector customers. It also lists procurement and contract vehicles in Canada, the United States and NATO. QeM describes potential cross-selling, pilots and wider deployment through those channels as subject to customer requirements, product readiness and procurement rules.

"QeM believes this combination could shorten the path from product validation to customer deployment by giving QeM access to an existing commercial organization and installed customer base," the companies said in their Sept. 28 joint release.

Commercial Sales Depend On Customer Decisions

The desk's earlier coverage of another identity-sector transaction also followed announced steps toward a merger. In this agreement, QeM would gain a commercial organization and relationships, while the companies' own release frames sales of QeM technology into those channels as potential outcomes. The stated customer and procurement conditions are still ahead.

Read more: WISeKey expects October 2 merger and October 5 WISeQey trading

The next dated operating test is Plurilock's quarter ending Sept. 30, 2026. When it reports that period, investors can compare revenue and gross margin with the June quarter's C$11.28 million and 17.3 per cent while the acquisition remains a proposal.