KWESST Announces 1-for-21 Share Consolidation
KWESST Micro Systems (NASDAQ: KWE) has announced a 1-for-21 share consolidation effective April 23, 2025, following shareholder approval on March 31, 2025. The consolidation will reduce the company's outstanding shares from 11,137,638 to approximately 530,363 shares.
The primary objective is to increase the bid price to maintain Nasdaq Capital Market listing compliance. Post-consolidation, the company will retain its name and trading symbols, with new CUSIP (501506802) and ISIN (CA5015068029) numbers.
The consolidation affects the company's Listed Warrants, requiring 21 warrants to purchase one post-consolidation share at an adjusted exercise price of US$1,050.00. Registered shareholders will receive instructions for exchanging their share certificates, while brokerage account holders require no action.
KWESST Micro Systems (NASDAQ: KWE) ha annunciato una consolidazione azionaria 1-per-21 con effetto dal 23 aprile 2025, a seguito dell'approvazione degli azionisti del 31 marzo 2025. La consolidazione ridurrà le azioni in circolazione da 11.137.638 a circa 530.363 azioni.
L'obiettivo principale è aumentare il prezzo di offerta per mantenere la conformità ai requisiti di quotazione del Nasdaq Capital Market. Dopo la consolidazione, la società manterrà il proprio nome e i simboli di negoziazione, con nuovi numeri CUSIP (501506802) e ISIN (CA5015068029).
La consolidazione interessa anche i warrant quotati della società, richiedendo 21 warrant per acquistare una singola azione post-consolidazione al prezzo di esercizio rettificato di 1.050,00 USD. Gli azionisti registrati riceveranno istruzioni per lo scambio dei certificati azionari, mentre i titolari di conti presso broker non dovranno effettuare alcuna azione.
KWESST Micro Systems (NASDAQ: KWE) ha anunciado una consolidación de acciones 1 por 21 que entrará en vigor el 23 de abril de 2025, tras la aprobación de los accionistas el 31 de marzo de 2025. La consolidación reducirá las acciones en circulación de 11,137,638 a aproximadamente 530,363 acciones.
El objetivo principal es aumentar el precio de oferta para mantener el cumplimiento con los requisitos de listado del Nasdaq Capital Market. Después de la consolidación, la empresa conservará su nombre y símbolos de cotización, con nuevos números CUSIP (501506802) e ISIN (CA5015068029).
La consolidación afecta a los warrants listados de la compañía, requiriendo 21 warrants para comprar una acción después de la consolidación a un precio de ejercicio ajustado de 1,050.00 USD. Los accionistas registrados recibirán instrucciones para el intercambio de sus certificados de acciones, mientras que los titulares de cuentas en corretajes no necesitan realizar ninguna acción.
KWESST Micro Systems (NASDAQ: KWE)는 2025년 4월 23일부터 효력이 발생하는 1대 21 주식 병합을 발표했으며, 이는 2025년 3월 31일 주주 승인에 따른 것입니다. 이번 병합으로 회사의 발행 주식 수는 11,137,638주에서 약 530,363주로 줄어듭니다.
주요 목적은 입찰 가격을 높여 나스닥 캐피털 마켓 상장 요건을 유지하는 것입니다. 병합 후 회사는 이름과 거래 심볼을 유지하며, 새로운 CUSIP 번호(501506802)와 ISIN 번호(CA5015068029)가 부여됩니다.
이번 병합은 회사의 상장 워런트에도 영향을 미치며, 병합 후 주식 1주를 구매하기 위해 21개의 워런트가 필요하며 조정된 행사 가격은 미화 1,050.00달러입니다. 등록된 주주들은 주식 증서 교환 안내를 받게 되며, 중개 계좌 보유자는 별도의 조치가 필요 없습니다.
KWESST Micro Systems (NASDAQ : KWE) a annoncé une consolidation d'actions au ratio de 1 pour 21, effective à partir du 23 avril 2025, suite à l'approbation des actionnaires le 31 mars 2025. Cette consolidation réduira le nombre d'actions en circulation de 11 137 638 à environ 530 363 actions.
L'objectif principal est d'augmenter le prix d'offre afin de respecter les exigences de cotation du Nasdaq Capital Market. Après la consolidation, la société conservera son nom et ses symboles de négociation, avec de nouveaux numéros CUSIP (501506802) et ISIN (CA5015068029).
La consolidation concerne également les bons de souscription cotés de la société, nécessitant 21 bons pour acheter une action post-consolidation au prix d'exercice ajusté de 1 050,00 USD. Les actionnaires enregistrés recevront des instructions pour échanger leurs certificats d'actions, tandis que les détenteurs de comptes en courtage n'ont aucune action à entreprendre.
KWESST Micro Systems (NASDAQ: KWE) hat eine Aktiensplit-Konsolidierung im Verhältnis 1 zu 21 angekündigt, die am 23. April 2025 in Kraft tritt, nach der Zustimmung der Aktionäre am 31. März 2025. Die Konsolidierung wird die ausstehenden Aktien von 11.137.638 auf etwa 530.363 Aktien reduzieren.
Das Hauptziel ist es, den Kurs der Aktie anzuheben, um die Anforderungen für die Notierung am Nasdaq Capital Market einzuhalten. Nach der Konsolidierung behält das Unternehmen seinen Namen und seine Handelssymbole bei, erhält jedoch neue CUSIP-Nummern (501506802) und ISIN-Nummern (CA5015068029).
Die Konsolidierung betrifft auch die börsennotierten Warrants des Unternehmens, wobei 21 Warrants erforderlich sind, um eine Aktie nach der Konsolidierung zu einem angepassten Ausübungspreis von 1.050,00 USD zu erwerben. Eingetragene Aktionäre erhalten Anweisungen zum Umtausch ihrer Aktienzertifikate, während Inhaber von Brokerage-Konten keine Maßnahmen ergreifen müssen.
- Share consolidation helps maintain Nasdaq listing compliance
- Significant dilution for existing shareholders with 21:1 consolidation ratio
- Substantial increase in warrant exercise price to US$1,050.00
- Potential indication of underlying share price weakness necessitating consolidation
Insights
KWESST's 21:1 share consolidation signals financial distress as company struggles to maintain Nasdaq listing requirements.
KWESST Micro Systems has announced a 1-for-21 share consolidation effective April 23, 2025, primarily to regain compliance with Nasdaq's minimum bid price requirements. This substantial consolidation ratio indicates significant downward pressure on the company's stock price that necessitated this corporate action.
The consolidation will dramatically reduce KWESST's outstanding share count from 11,137,638 to approximately 530,363 shares. While this action doesn't change the company's underlying fundamentals or market capitalization, reverse splits of this magnitude typically signal serious challenges.
Investors should note that this consolidation affects the company's capital structure in several ways:
- The consolidation artificially increases the share price by reducing the number of outstanding shares
- Existing warrant terms will be adjusted - post-consolidation, 21 warrants will be needed to purchase one share at US$1,050.00
- Fractional shares will be rounded based on standard practices
The steep 21:1 ratio is particularly noteworthy as reverse splits typically use smaller ratios like 1:2 or 1:5. The magnitude suggests KWESST's share price had fallen substantially below Nasdaq's minimum requirements, forcing this aggressive adjustment to maintain its listing status. Loss of Nasdaq listing would severely impact liquidity and institutional investor access, which explains the company's actions despite the negative signal it sends to the market.
Ottawa, Ontario--(Newsfile Corp. - April 21, 2025) - KWESST Micro Systems Inc. (TSXV: KWE) (TSXV: KWE.WT.U) (NASDAQ: KWE) (NASDAQ: KWESW) ("KWESST" or the "Company") announces, subject to the final approval of the TSX Venture Exchange (the "TSXV"), that it will effect a consolidation of the Company' issued and outstanding common shares (each, a "Share") on the basis of twenty-one (21) pre-consolidation Shares for each one (1) post-consolidation Share (the "Consolidation"). The Consolidation will be effective at 12:01 a.m. Eastern Daylight Time April 23, 2025. The Shares are expected to begin trading on the TSXV and Nasdaq Capital Market (the "Nasdaq") on a consolidated basis on or around April 23, 2025.
The Company's shareholders previously approved the Consolidation at a special meeting of shareholders held on March 31, 2025 up to a ratio of twenty five (25) pre-consolidation Shares for each one (1) post-consolidation Share, such ratio and the implementation and timing of such Consolidation to be determined by the Company's Board of Directors (the "Board") at its discretion. The Consolidation was effected pursuant to a resolution of the Board dated April 2, 2025.
As at the date hereof, there are a total of 11,137,638 Shares issued and outstanding. Assuming no other change to the issued and outstanding Shares, a total of 530,363 Shares, subject to adjustments for rounding, will be issued and outstanding.
No fractional post-Consolidation Shares will be issued as a result of the Consolidation. Fractional Shares will be rounded up to the next nearest whole number of Shares if the fraction is at least half of a Share and rounded down to the nearest whole number of Shares if the fraction is less than half a Share.
The principal purpose of the Consolidation is to increase the bid price of the Shares to regain compliance with the continued listing requirements of the Nasdaq Capital Market. The Company's name and trading symbol will remain unchanged following the Consolidation. The new CUSIP number will be 501506802 and the new ISIN number will be CA5015068029 for the post-Consolidation Shares.
A letter of transmittal from the Company's transfer agent, TSX Trust Company, has been sent to registered shareholders and is available on the Company's SEDAR+ profile at www.sedarplus.ca. The letter of transmittal contains instructions on how registered shareholders can exchange their Share certificates representing pre-Consolidation Shares for new certificates representing post-Consolidation Shares. Until surrendered, each Share certificate representing pre-Consolidation Shares will represent the number of whole post-Consolidation Shares to which the holder is entitled as a result of the Consolidation. Shareholders who hold their Shares in brokerage accounts are not required to take action to effect an exchange of their pre-Consolidation Shares for post-Consolidation Shares.
The Consolidation will not have any effect on the number of issued and outstanding Share purchase warrants of the Company which trade on the TSX-V under the symbol "KWE.WT.U" or on Nasdaq under the symbol "KWESW" (collectively, the "Listed Warrants"). However, as a result of the Consolidation, the number of Shares issuable upon the exercise of each Listed Warrant will be reduced and the exercise price increased, the whole in accordance with the terms of the indenture and warrant agent agreement, as applicable, governing the Listed Warrants. Following the Consolidation, the exercise of twenty-one (21) Listed Warrants will be required to purchase one (1) post-Consolidation Share, and the exercise price will be US
The exercise price and number of Shares of the Company issuable upon exercise of any other outstanding convertible securities will be proportionately adjusted pursuant to the Consolidation.
The Company believes that the Consolidation is in the best interests of shareholders as it will allow the Company to ensure continued compliance with Nasdaq's minimum bid price requirements.
About KWESST
KWESST (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) (TSXV: KWE.WT.U) develops and commercializes breakthrough next-generation tactical systems for military and security forces. The company's current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons. Other KWESST products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems, and all come integrated with TAK. The company also has a new proprietary non-lethal product line branded PARA OPSTM with application across all segments of the non-lethal market, including law enforcement. The Company is headquartered in Ottawa, Canada with representative offices in London, UK and Abu Dhabi, UAE.
For more information, please visit https://kwesst.com/.
Contact:
David Luxton, Chairman: luxton@kwesst.com
Sean Homuth, President and CEO: homuth@kwesst.com
Jason Frame, Investor Relations: frame@kwesst.com
587.225.2599
Neither the TSX Venture Exchange nor its respective Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release includes certain statements that may be deemed "forward-looking statements" within the meaning of Canadian and United States securities laws (collectively, "forward-looking statements"), which may be identified by the use of words such as "plans", "intends", "believes", "proposed", or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", or "will" be taken, occur or be achieved. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: the anticipated positive effects of shareholder approval of the Consolidation and the ability of KWESST to maintain compliance with regulatory requirements following the Consolidation, notably Nasdaq's minimum bid price requirement; risks and uncertainties detailed from time to time in KWESST's filings with the Canadian Security Administrators and the United States Securities and Exchange Commission, and many other factors beyond the control of KWESST. Although KWESST has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and KWESST undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249128
FAQ
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