Quantum Secure Encryption Corp. (CSE: QSE) (OTCQB: QSEGF) closed the first tranche of a non-brokered private placement, issuing 11,833,456 units at $0.45 per unit for total proceeds of $5,325,055.20, according to a company statement.

The company also announced it has increased the total size of the offering to up to 13,333,333 units at $0.45 per unit, for gross proceeds of up to $6,000,000, citing strong investor demand.

Each unit consists of one common share and one half of one common share purchase warrant, with each whole warrant entitling the holder to acquire one additional share at an exercise price of $0.65 until July 31, 2028.

In connection with the first tranche, the company paid finders a cash fee of $109,760.53 and issued 207,177 finder warrants, each exercisable at $0.65 until July 31, 2028. All securities are subject to a statutory hold period of four months plus one day from closing.

Net proceeds are intended for commercialization and expansion of the QSE Platform and general working capital. The closing of the remaining balance is subject to conditions including approval from the Canadian Securities Exchange.

Separately, the company disclosed it has entered into a six-month corporate communications and digital marketing agreement with Market Equities Limited, based in Dublin, Ireland, for an upfront fee of C$200,000. The agreement runs from July 31, 2026 through January 31, 2027. Market Equities does not hold any securities of the company, and its compensation does not include any company securities.