KWESST Micro Systems Inc. - KWE STOCK NEWS

KWESST Micro Systems has received a 180-day extension from Nasdaq until May 12, 2025, to regain compliance with the minimum $1 bid price requirement. The company failed to meet this requirement during the initial compliance period ending November 12, 2024. To maintain listing, KWESST must achieve a closing bid price of $1 or above for at least 10 consecutive trading days. The company may implement a reverse share split if necessary. Currently, trading continues normally on both Nasdaq Capital Market and TSX Venture Exchange.

KWESST Micro Systems has closed a private placement offering, raising CAD$3.4 million (US$2.5 million) from an institutional accredited investor. The company issued 4,145,200 pre-funded warrants at CAD$0.824 per warrant, each bundled with a common share purchase warrant exercisable at CAD$1.03 for 60 months. The proceeds will be used for general working capital. ThinkEquity acted as placement agent, receiving an 8% cash fee and 5% warrant compensation. Additionally, KWESST addressed its Nasdaq compliance status regarding the minimum US$1.00 bid price requirement, with a deadline of November 12, 2024, and potential eligibility for a 180-day extension.

KWESST Micro Systems announces plans to issue 119,047 common shares at $0.84 per share, representing a 20% discount from the TSXV closing price, to settle $100,000 in business expenses. The debt settlement primarily involves Executive Chairman David Luxton's company, which will receive 95,238 shares. This transaction qualifies as a 'related party transaction' under MI 61-101, though KWESST is utilizing exemptions from formal valuation and minority shareholder approval requirements. The board unanimously approved the settlement, excluding Luxton, viewing it as beneficial for preserving cash position. The issued shares will be subject to a four-month hold period.

KWESST Micro Systems announced the closing of its public offering of 3,889,000 common shares at US$0.90 per share, raising gross proceeds of approximately US$3.5 million. The offering included pre-funded warrants and placement agent fees of US$262,508. The company issued 194,450 common share purchase warrants to the placement agent with an exercise price of US$1.125 per share. Half of the net proceeds will fund product development for BLDS, KWESST Lightning™, ARWEN, and PARA OPS™, while the remaining half will support working capital and general corporate purposes.

KWESST Micro Systems has announced the pricing of a public offering of 3,889,000 common shares at US$0.90 per share, aiming to raise approximately US$3.5 million in gross proceeds. The offering includes pre-funded warrants as an alternative to common shares. Half of the net proceeds will fund product development for BLDS, KWESST Lightning™, ARWEN and PARA OPS™, while the remaining half will support working capital and general corporate purposes. ThinkEquity is serving as the sole placement agent, with the offering expected to close on November 1, 2024.

KWESST Micro Systems has completed its volume production ramp-up for ARWEN cartridges through outsourcing to a Canadian ammunition manufacturer. The company has successfully completed characterization testing of its new 40mm baton round, expanding beyond its historical 37mm cartridge offering. The company is currently shipping evaluation quantities to agencies in the U.S. and Canada.

Additionally, KWESST's subsidiary has secured a receivables facility agreement with a US-based global financing company, providing up to $250,000 CAD in funding. The facility advances 80% upfront with a 2.5% rate for the first thirty days and 1% for each subsequent ten days, to 20% of the funded receivable value.

KWESST Micro Systems Inc. (NASDAQ: KWE) (TSXV: KWE) has announced a 10-to-1 share consolidation effective October 23, 2024. The consolidation, approved by the TSX Venture Exchange, will reduce the company's outstanding shares from 15,791,742 to approximately 1,579,174. No fractional shares will be issued, with fractions rounded up or down as appropriate. The company's name and trading symbol remain unchanged, but new CUSIP and ISIN numbers have been assigned.

The consolidation will not affect the number of outstanding share purchase warrants, but their exercise terms will be adjusted proportionally. After consolidation, ten warrants will be required to purchase one post-consolidation share at an exercise price of US$50.00. The company believes this move will ensure continued compliance with Nasdaq's minimum bid price requirements.

KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) has announced a proposed share consolidation plan. The company's board of directors has authorized a 10-to-1 share consolidation, subject to TSX Venture Exchange approval. This move aims to ensure continued compliance with NASDAQ Stock Market minimum bid price requirements.

As a result of this decision, KWESST has opted not to hold its previously planned special meeting of shareholders, which was intended to seek approval for a consolidation on a greater basis. Currently, there are 15,791,742 shares issued and outstanding. If the consolidation is implemented, the total number of shares would be reduced to approximately 1,579,174, subject to adjustments for rounding.

KWESST Micro Systems Inc. (NASDAQ: KWE) (TSXV: KWE) has provided an update on its sub-contract with Thales Canada for the Canadian Department of National Defence's Land C4ISR program. The company has deployed five full-time engineers and is staffing an additional 11 positions, with a current demand for 16 full-time technical positions. KWESST expects further staffing increases as future tasks are received.

The sub-contract has a maximum workshare of approximately CAD $48 million over the initial six-year term. Sean Homuth, KWESST's President and CEO, highlighted the urgency of the work and the trust developed with Thales. He also noted that this project drives skills development for delivering defence-grade solutions to law enforcement and first responders through KWESST Lightning™.