Group 1 - KWESST Micro Systems Inc. has regained compliance with Nasdaq's minimum bid price requirement after achieving a closing bid price of at least USD$1.00 per common share for 10 consecutive business days from April 24, 2025, to May 7, 2025 [1][2] - The listing matter regarding the company's compliance has been closed, allowing its common shares and public warrants to continue trading on Nasdaq under the symbols "KWE" and "KWESW" respectively [2] Group 2 - KWESST develops and commercializes next-generation tactical systems for military and security forces, focusing on digitization for real-time situational awareness and targeting information [3] - The company's product offerings include countermeasures against electronic detection, lasers, and drones, which can operate independently or integrate with existing systems [3] - KWESST also has a proprietary non-lethal product line branded PARA OPSTM, applicable across various segments including law enforcement [3]

Core Viewpoint - KWESST Micro Systems Inc. is implementing a share consolidation of 21 pre-consolidation shares for each post-consolidation share, subject to final approval from the TSX Venture Exchange [1][4]. Group 1: Share Consolidation Details - The consolidation will take effect at 12:01 a.m. Eastern Daylight Time on April 23, 2025, for Nasdaq and on April 24, 2025, for TSXV, with trading halted on April 23 and resuming on a consolidated basis on April 24 [2]. - The new CUSIP number for post-consolidation shares will be 501506802, and the new ISIN number will be CA5015068029 [2]. Group 2: Impact on Warrants - The consolidation will not affect the number of issued and outstanding share purchase warrants, but the number of shares issuable upon exercise will be reduced, requiring 210 warrants to purchase one post-consolidation share at an exercise price of US$1,050.00 [3]. Group 3: Rationale for Consolidation - The company believes the consolidation is in the best interests of shareholders to ensure compliance with Nasdaq's minimum bid price requirements [4]. Group 4: Company Overview - KWESST develops next-generation tactical systems for military and security forces, including real-time situational awareness and countermeasures against various threats [5].

Core Viewpoint - KWESST Micro Systems Inc. will consolidate its common shares at a ratio of 21 pre-consolidation shares for 1 post-consolidation share, effective April 23, 2025, to comply with Nasdaq's minimum bid price requirements [1][5][8]. Group 1: Share Consolidation Details - The consolidation was approved by shareholders on March 31, 2025, with a maximum ratio of 25 pre-consolidation shares for 1 post-consolidation share, but the Board decided on a 21:1 ratio [2]. - Currently, there are 11,137,638 shares issued and outstanding, which will reduce to approximately 530,363 shares post-consolidation [3]. - No fractional shares will be issued; fractions will be rounded to the nearest whole number [4]. Group 2: Purpose and Impact - The primary purpose of the consolidation is to increase the share price to meet Nasdaq's continued listing requirements [5][8]. - The consolidation will not affect the number of outstanding share purchase warrants, but the number of shares per warrant will be adjusted to 21 warrants for 1 post-consolidation share, with an increased exercise price of US$1,050.00 [7]. - The exercise price and number of shares for other convertible securities will also be proportionately adjusted [8]. Group 3: Company Overview - KWESST develops next-generation tactical systems for military and security forces, including digitization of tactical forces and countermeasures against various threats [9][10]. - The company is headquartered in Ottawa, Canada, with offices in London, UK, and Abu Dhabi, UAE [10].

Core Points - KWESST Micro Systems Inc. held a special meeting of shareholders on March 31, 2025, to address compliance with Nasdaq's minimum bid price requirement [1] - Shareholders approved a resolution for the consolidation of common shares at a ratio of one share for every twenty-five shares [2] - The board of directors will determine the timing for the consolidation and will announce the final share ratio soon [3] Company Overview - KWESST develops next-generation tactical systems for military and security forces, focusing on real-time situational awareness and targeting information [4] - The company's product portfolio includes countermeasures against electronic detection, lasers, and drones, as well as a new non-lethal product line branded PARA OPSTM [4] - KWESST is headquartered in Ottawa, Canada, with offices in London, UK, and Abu Dhabi, UAE [4]