KWESST Announces Issuance of Shares in Payment of Certain Debts
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 annuncia piani per emettere 119.047 azioni ordinarie a $0,84 per azione, rappresentando uno sconto del 20% rispetto al prezzo di chiusura del TSXV, per saldare $100.000 in spese aziendali. Il regolamento del debito coinvolge principalmente la società del Presidente Esecutivo David Luxton, che riceverà 95.238 azioni. Questa transazione è considerata una 'transazione con parti correlate' ai sensi del MI 61-101, sebbene KWESST stia utilizzando esenzioni dai requisiti di valutazione formale e approvazione degli azionisti di minoranza. Il consiglio ha approvato all'unanimità il regolamento, escludendo Luxton, ritenendolo vantaggioso per preservare la posizione di liquidità. Le azioni emesse saranno soggette a un periodo di blocco di quattro mesi.
KWESST Micro Systems anuncia planes para emitir 119,047 acciones comunes a $0.84 por acción, representando un descuento del 20% respecto al precio de cierre del TSXV, para liquidar $100,000 en gastos empresariales. La liquidación de la deuda involucra principalmente a la empresa del Presidente Ejecutivo David Luxton, que recibirá 95,238 acciones. Esta transacción califica como una 'transacción con partes relacionadas' bajo MI 61-101, aunque KWESST está utilizando exenciones de los requisitos de valoración formal y aprobación de los accionistas minoritarios. La junta aprobó unánimemente la liquidación, excluyendo a Luxton, considerándola beneficiosa para preservar la posición de efectivo. Las acciones emitidas estarán sujetas a un periodo de bloqueo de cuatro meses.
KWESST Micro Systems는 $100,000의 사업 비용을 정산하기 위해 주당 $0.84로 총 119,047주의 보통주를 발행할 계획이라고 발표했습니다. 이는 TSXV 종가 대비 20% 할인된 가격입니다. 이 부채 정산은 주로 이사회 의장인 David Luxton의 회사를 포함하며, 해당 회사는 95,238주를 받게 됩니다. 이 거래는 MI 61-101에 따른 '관련자 거래'로 간주되지만, KWESST는 공식 평가 및 소수 주주 승인 요건에 대한 면제를 활용하고 있습니다. 이사회는 Luxton을 제외하고 만장일치로 정산을 승인하며, 이는 현금 유동성 유지를 위한 유리한 조치로 판단되었습니다. 발행된 주식은 4개월의 보유 기간을 두어야 합니다.
KWESST Micro Systems annonce son intention d'émettre 119 047 actions ordinaires à 0,84 $ par action, ce qui représente une remise de 20 % par rapport au cours de clôture du TSXV, afin de régler des dépenses commerciales de 100 000 $. Le règlement de la dette concerne principalement la société du président exécutif David Luxton, qui recevra 95 238 actions. Cette transaction est considérée comme une 'transaction entre parties liées' au sens de la MI 61-101, bien que KWESST utilise des exemptions aux exigences d'évaluation formelle et d'approbation des actionnaires minoritaires. Le conseil d'administration a approuvé à l'unanimité le règlement, excluant Luxton, le considérant comme bénéfique pour préserver la position de trésorerie. Les actions émises seront soumises à une période de blocage de quatre mois.
KWESST Micro Systems kündigt Pläne an, 119.047 Stammaktien zu einem Preis von 0,84 $ pro Aktie auszugeben, was einem Rabatt von 20 % gegenüber dem Schlusskurs der TSXV entspricht, um 100.000 $ an Geschäftsausgaben zu begleichen. Die Schuldenregelung betrifft hauptsächlich das Unternehmen des Executive Chairman David Luxton, das 95.238 Aktien erhalten wird. Diese Transaktion gilt als 'Transaktion mit nahestehenden Personen' gemäß MI 61-101, obwohl KWESST Ausnahmen von den Anforderungen an die formelle Bewertung und die Genehmigung durch die Minderheitsaktionäre in Anspruch nimmt. Der Vorstand genehmigte die Regelung einstimmig, mit Ausnahme von Luxton, da er dies als vorteilhaft für die Aufrechterhaltung der Liquiditätslage ansah. Die ausgegebenen Aktien unterliegen einer Haltefrist von vier Monaten.
- Debt settlement preserves company cash position
- Board unanimously approved the transaction
- Shares issued at 20% discount to market price
- Dilution of existing shareholders through new share issuance
- Related party transaction with Executive Chairman
Insights
The debt settlement through share issuance indicates KWESST's cash preservation strategy but raises concerns about shareholder dilution. The company is issuing
The related party nature of this transaction and the need to settle basic business expenses through share issuance suggests potential liquidity constraints. With a relatively small market cap of
Ottawa, Ontario--(Newsfile Corp. - November 11, 2024) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) (TSXV: KWE.WT.U)("KWESST" or the "Company") today announces that it intends to issue a total of 119,047 common shares at a deemed price per common share of
Mr. Luxton will be issued an aggregate of 95,238 Shares for the Debt Settlement. Accordingly, the issuance of such Shares to Mr. Luxton pursuant to the Debt Settlement constitutes a "related party transaction" as such term is defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). KWESST is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 pursuant to section 5.5(a) and section 5.7(1)(a) of MI 61-101.
The terms of the Debt Settlement and the agreements related thereto were submitted and unanimously approved by way of a resolution adopted by all the directors of the Company, other than Mr. Luxton who declared his interest in connection with the Debt Settlement. The board of directors determined that the Debt Settlement was in the best interest of the Company as it will allow the Company to preserve its cash position.
The Shares to be issued pursuant to the Debt Settlement will be subject to a four-month hold period pursuant to applicable Canadian securities legislation and the policies of the TSXV. The securities issued under the Debt Settlement have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and were not to be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. The Debt Settlement remains subject to the approval of the TSXV.
About KWESST
KWESST (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) (FSE: 62U) 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 as well as representative offices in London, UK and Abu Dhabi, UAE.
For further information, please contact:
Kris Denis, Chief Financial Officer and Chief Compliance Officer
+1 (613) 250-9752
denis@kwesst.com
Sean Homuth, President and CEO
homuth@kwesst.com
Jason Frame, Investor Relations
+1 (587) 225-2599
frame@kwesst.com
Forward-Looking Statements
This press release contains "forward-looking statements" and "forward-looking information" 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", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of KWESST's management and are based on assumptions and subject to risks and uncertainties. Although KWESST's management believes that the assumptions underlying such statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this press release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting KWESST, including general economic and stock market conditions; loss of markets; 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229459
FAQ
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How many shares will David Luxton receive in KWESST's (KWE) debt settlement?
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