Core Points - KWESST Micro Systems Inc. has closed a brokered private placement offering, raising approximately CAD$3.4 million (around US$2.5 million) from an institutional accredited investor [1] - The offering included the issuance of 4,145,200 pre-funded warrants, each allowing the purchase of one common share at CAD$0.824 (US$0.592), along with common share purchase warrants exercisable at CAD$1.03 (US$0.74) for 60 months [2] - The net proceeds from the offering will be used for general working capital purposes [3] Group 1: Offering Details - ThinkEquity acted as the sole placement agent for the offering, receiving an 8.0% cash fee and warrants to purchase common shares equal to 5% of the pre-funded warrants sold [4] - The offering is subject to final approval from the TSX Venture Exchange [5] - The securities sold in the offering have not been registered under the U.S. Securities Act and cannot be offered or sold in the U.S. without registration or an exemption [6] Group 2: Related Transactions - KWESST completed a shares-for-debt transaction, issuing 119,047 common shares at a deemed price of CAD$0.84 per share to settle a debt of CAD$100,000 owed to a company controlled by the Executive Chairman [9] - This transaction is classified as a "related party transaction" under Multilateral Instrument 61-101, with exemptions from formal valuation and minority shareholder approval [9] Group 3: Compliance and Financial Position - KWESST received notification from Nasdaq regarding non-compliance with the minimum US$1.00 bid price requirement, with a deadline to regain compliance by November 12, 2024 [10] - The company estimates its unaudited pro-forma consolidated shareholders' equity to be above US$5.0 million, based on adjustments from recent offerings and transactions [11] - KWESST believes it is eligible for an additional 180-day period to regain compliance with Nasdaq requirements [12] Group 4: Company Overview - KWESST develops next-generation tactical systems for military and security forces, including digitization of tactical forces and countermeasures against various threats [13]

Core Points - KWESST Micro Systems Inc. intends to issue 119,047 common shares at a deemed price of $0.84 per share, representing a 20% discount on the closing price prior to the announcement [1] - The total amount for the debt settlement is $100,000 owed to a company controlled by Mr. David Luxton, the Executive Chairman [1] - Mr. Luxton will receive 95,238 shares as part of the debt settlement, which is classified as a related party transaction under Multilateral Instrument 61-101 [2] - The board of directors, excluding Mr. Luxton, unanimously approved the debt settlement, determining it to be in the best interest of the company to preserve cash [3] - The shares issued will be subject to a four-month hold period and will not be registered under the U.S. Securities Act of 1933 [4] Company Overview - KWESST develops and commercializes next-generation tactical systems for military and security forces, including digitization of tactical forces and countermeasures against various threats [5] - The company's product offerings include real-time shared situational awareness systems and a new non-lethal product line branded PARA OPSTM, applicable across law enforcement and other segments [5] - KWESST is headquartered in Ottawa, Canada, with representative offices in London, UK, and Abu Dhabi, UAE [5]

Group 1 - KWESST Micro Systems Inc. announced the closing of a public offering of 3,889,000 common shares at a price of US$0.90 per share, generating gross proceeds of approximately US$3,500,000 before fees [1][2] - The placement agent, ThinkEquity, received placement agent fees totaling US$262,508, which is 7.5% of the public offering price, along with 194,450 common share purchase warrants with an exercise price of US$1.125 per share [1][2] - The company plans to allocate approximately half of the net proceeds for product and business development related to its tactical systems and the other half for working capital and general corporate purposes [1] Group 2 - KWESST develops next-generation tactical systems for military and security forces, including products for real-time situational awareness and countermeasures against various threats [5] - The company is headquartered in Ottawa, Canada, with additional operations in Guelph, Ontario, and Youngsville, North Carolina, as well as offices in London, UK, and Abu Dhabi, UAE [5]

Ottawa, Ontario--(Newsfile Corp. - October 30, 2024) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) ("KWESST" or the "Company"), today announced the pricing of a best efforts public offering of 3,889,000 common shares (or pre-funded warrants ("Pre-funded Warrants") in lieu thereof) at a public offering price of US$0.90 per common share (inclusive of the Pre-Funded Warrant exercise price), for gross proceeds of approximately US$3,500,000, before deducting placement agent fees and offer ...

KWESST Announces Completion of Volume Production Ramp-Up for Arwen Cartridges Through Outsourcing with Ammunition Manufacturer to Meet Growing DemandOctober 23, 2024 5:05 PM EDT | Source: KWESST Micro Systems Inc.Company also establishes financing facility for its programmatic military contractsOttawa, Ontario--(Newsfile Corp. - October 23, 2024) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) ("KWESST" or the "Company") today announced it has completed its plan to ramp u ...

Ottawa, Ontario--(Newsfile Corp. - October 21, 2024) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) (TSXV: KWE.WT.U) ("KWESST" or the "Company") announces that, further to the Company's press release on October 10, 2024, the Company has received approval of the TSX Venture Exchange (the "TSX-V") for the consolidation of the Company's issued and outstanding common shares (each, a "Share") on the basis of ten (10) pre-consolidation Shares for each one (1) post-consolidation Share (the ...

Ottawa, Ontario--(Newsfile Corp. - October 10, 2024) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) ("KWESST" or the "Company") announces that its board of directors (the "Board") has authorized a plan to proceed with a consolidation of its outstanding common shares (each, a "Share") on the basis of ten (10) pre-consolidation Shares for each one (1) post-consolidation Share (the "Consolidation"). The Consolidation is subject to approval of the TSX Venture Exchange (the "Exchange"). Th ...

A strong start to the Thales sub-contract over the first few months since award. Ottawa, Ontario--(Newsfile Corp. - October 1, 2024) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) ("KWESST" or the "Company") today updated investors on the rampup of activity on its sub-contract to Thales Canada in support of the Canadian Department of National Defence Land C4ISR series of contracts to modernize the Canadian Army's capabilities through advanced land command, control, communications, com ...

Ottawa, Ontario--(Newsfile Corp. - September 27, 2024) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) ("KWESST" or the "Company") announces the postponement of the special meeting (the "Meeting") of KWESST shareholders (the "Shareholders") in connection with the proposed consolidation of the Company's share capital (the "Consolidation"). The Meeting will reconvene on October 7, 2024, at 3:00 p.m. (Eastern time). Based on a preliminary assessment of votes received by KWESST, nearly 75% ...

Core Insights - KWESST Micro Systems Inc. reported a significant revenue increase of 119% in Q3 2024 compared to the same period last year, primarily driven by a government contract [2][3] - The company is transitioning from a development stage to a revenue ramp-up phase, with a strong focus on cash management and capital allocation [2][4] Financial Performance - Total revenue for Q3 2024 increased by $0.2 million, while year-to-date (YTD) revenue rose by $0.3 million compared to the same periods in the previous year [3][7] - Gross profit for Q3 2024 was $0.2 million, resulting in a gross margin of 24%, down from 39% in the same period last year [3][9] - Operating loss for Q3 2024 decreased by 26% to $2.2 million, while YTD operating loss increased by 1% to $7.6 million [5][11] Cost Management - Sales and marketing expenses were reduced by 69% in Q3 and 51% YTD compared to the previous year [2] - Overall cash used in operations decreased by $4.5 million (39%) YTD compared to the same period last year [2] Strategic Developments - The company secured a Land C4ISR subcontract in June 2024, marking a strategic move to enhance its defense capabilities [2][21] - KWESST is preparing for the commercial launch of KWESST LightningTM in early 2025, which is expected to drive future revenue growth [8] Balance Sheet Overview - As of June 30, 2024, total assets were reported at $6.74 million, a decrease from $11.76 million as of September 30, 2023 [14] - Cash and cash equivalents stood at $1.18 million, down from $5.41 million [14] Other Income and Expenses - Total other income for Q3 2024 was $1.0 million, a significant increase from total expenses of $0.5 million in Q3 2023, primarily due to favorable changes in fair value of warrant liabilities [12][13]