KWESST Micro Systems Inc. Announces CAD $3.5 Million Private Placement
KWESST Micro Systems Inc. (NASDAQ: KWE) has announced a CAD$3.5 million private placement (approximately US$2.5 million) through definitive securities purchase agreements with accredited and institutional investors. The company will issue 3,787,879 common shares and/or pre-funded warrants at CAD$0.928 per share.
Each share or pre-funded warrant comes bundled with a common warrant, exercisable at CAD$1.16 per share for 60 months after closing. ThinkEquity, acting as sole placement agent, will receive a 7.5% cash fee and warrants to purchase 5% of the pre-funded warrants sold. The proceeds will be used for general working capital purposes.
The offering remains subject to TSX Venture Exchange approval and has not been registered under the U.S. Securities Act.
KWESST Micro Systems Inc. (NASDAQ: KWE) ha annunciato un collocamento privato di 3,5 milioni di dollari canadesi (circa 2,5 milioni di dollari statunitensi) tramite accordi definitivi di acquisto di titoli con investitori accreditati e istituzionali. L'azienda emetterà 3.787.879 azioni ordinarie e/o warrant prefinanziati a CAD$0,928 per azione.
Ogni azione o warrant prefinanziato è accompagnato da un warrant comune, esercitabile a CAD$1,16 per azione per 60 mesi dopo la chiusura. ThinkEquity, in qualità di unico agente di collocamento, riceverà una commissione in contante del 7,5% e warrant per acquistare il 5% dei warrant prefinanziati venduti. I proventi saranno utilizzati per scopi generali di capitale circolante.
Il collocamento è soggetto all'approvazione della TSX Venture Exchange e non è stato registrato ai sensi del Securities Act degli Stati Uniti.
KWESST Micro Systems Inc. (NASDAQ: KWE) ha anunciado un colocación privada de 3.5 millones de dólares canadienses (aproximadamente 2.5 millones de dólares estadounidenses) a través de acuerdos definitivos de compra de valores con inversores acreditados e institucionales. La empresa emitirá 3,787,879 acciones comunes y/o warrants prefinanciados a CAD$0.928 por acción.
Cada acción o warrant prefinanciado viene acompañado de un warrant común, que se puede ejercer a CAD$1.16 por acción durante 60 meses después del cierre. ThinkEquity, actuando como único agente de colocación, recibirá una comisión en efectivo del 7.5% y warrants para comprar el 5% de los warrants prefinanciados vendidos. Los ingresos se utilizarán para fines generales de capital de trabajo.
La oferta está sujeta a la aprobación de TSX Venture Exchange y no ha sido registrada bajo la Ley de Valores de EE. UU.
KWESST Micro Systems Inc. (NASDAQ: KWE)는 350만 캐나다 달러의 사모 배정 (약 250만 미국 달러)을 인증된 기관 투자자들과의 유가증권 구매 계약을 통해 발표했습니다. 회사는 주당 CAD$0.928로 3,787,879주와/또는 사전 자금 지원된 워런트를 발행할 것입니다.
각 주식 또는 사전 자금 지원된 워런트는 60개월 후에 주당 CAD$1.16로 행사할 수 있는 일반 워런트와 함께 제공됩니다. ThinkEquity는 단독 배정 에이전트 역할을 하며 7.5%의 현금 수수료와 판매된 사전 자금 지원된 워런트의 5%를 구매할 수 있는 워런트를 받습니다. 수익금은 일반 운영 자본 목적으로 사용될 것입니다.
이 제안은 TSX 벤처 거래소의 승인을 받아야 하며, 미국 증권법에 따라 등록되지 않았습니다.
KWESST Micro Systems Inc. (NASDAQ: KWE) a annoncé un placement privé de 3,5 millions de dollars canadiens (environ 2,5 millions de dollars américains) par le biais d'accords d'achat de valeurs mobilières définitifs avec des investisseurs accrédités et institutionnels. La société émettra 3 787 879 actions ordinaires et/ou bons de souscription préfinancés à CAD$0,928 par action.
Chaque action ou bon de souscription préfinancé est accompagné d'un bon de souscription commun, exerçable à CAD$1,16 par action pendant 60 mois après la clôture. ThinkEquity, agissant en tant qu'agent de placement exclusif, recevra des frais en espèces de 7,5 % et des bons de souscription pour acheter 5 % des bons de souscription préfinancés vendus. Les produits seront utilisés à des fins générales de fonds de roulement.
L'offre est soumise à l'approbation de la TSX Venture Exchange et n'a pas été enregistrée en vertu de la loi américaine sur les valeurs mobilières.
KWESST Micro Systems Inc. (NASDAQ: KWE) hat eine private Platzierung von 3,5 Millionen kanadischen Dollar (ungefähr 2,5 Millionen US-Dollar) durch endgültige Wertpapierkaufvereinbarungen mit akkreditierten und institutionellen Investoren angekündigt. Das Unternehmen wird 3.787.879 Stammaktien und/oder vorfinanzierte Warrants zu CAD$0,928 pro Aktie ausgeben.
Jede Aktie oder vorfinanzierte Warrant wird zusammen mit einem allgemeinen Warrant angeboten, der für 60 Monate nach dem Abschluss zu CAD$1,16 pro Aktie ausgeübt werden kann. ThinkEquity, der als alleiniger Platzierungsagent fungiert, erhält eine Barvergütung von 7,5% sowie Warrants zum Kauf von 5% der verkauften vorfinanzierten Warrants. Die Einnahmen werden für allgemeine Betriebskapitalzwecke verwendet.
Das Angebot steht unter dem Vorbehalt der Genehmigung durch die TSX Venture Exchange und wurde nicht nach dem US-Wertpapiergesetz registriert.
- Secured CAD$3.5 million (US$2.5 million) in additional funding
- 60-month warrant exercise period provides long-term funding potential
- 7.5% cash fee plus 5% warrant compensation to placement agent reduces net proceeds
- Potential dilution for existing shareholders through new share issuance
- Share price for new issuance at CAD$0.928 may pressure current market price
Insights
This CAD$3.5 million private placement represents a significant capital raise for KWESST, structured as a combination of equity and warrants. The offering price of CAD$0.928 per unit reflects current market conditions, while the CAD$1.16 warrant exercise price indicates management's optimistic outlook on future value creation.
The structure of this financing merits careful analysis. The inclusion of five-year warrants with a 25% premium to the offering price suggests a balanced approach between immediate capital needs and long-term upside potential for investors. However, the pre-funded warrant component provides flexibility for investors who may face ownership restrictions, while ensuring immediate access to capital for the company.
The 7.5% cash fee and 5% warrant compensation to ThinkEquity are within market norms for micro-cap placements, though they do represent a meaningful cost to the transaction. The net proceeds, after deducting approximately CAD$262,500 in cash fees and other offering expenses, will provide working capital but also indicates potential cash flow pressures.
This financing appears to be a defensive move to strengthen the balance sheet, rather than for specific growth initiatives, given its designation for general working capital. The timing and terms suggest management is prioritizing certainty of funding over minimal dilution, which could indicate near-term operational challenges or a strategic buffer being built for future opportunities.
Ottawa, Ontario--(Newsfile Corp. - February 19, 2025) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) ("KWESST" or the "Company"), today announced that it has entered into definitive securities purchase agreements dated February 19, 2025 with accredited and institutional investors for the issuance and sale of the Company's securities, on a brokered private placement basis, for aggregate gross proceeds of approximately CAD
As a part of the Offering, the Company plans to issue 3,787,879 common shares, no par value per share (each a "Common Share"), and/or pre-funded warrants to acquire one Common Share of the Company (each a "Pre-funded Warrant") in lieu thereof, at a price of CAD
KWESST intends to use the aggregate net proceeds from the Offering for general working capital purposes.
ThinkEquity is acting as sole placement agent for the Offering. As compensation for services rendered, the Company will (i) pay to ThinkEquity, at the Closing, a cash fee (the "Cash Fee") equal to
The Offering remains subject to the approval of the TSX Venture Exchange.
The securities being offered and sold by KWESST in the Offering have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States, or to or for the account or benefit of U.S. persons, absent registration under the Securities Act and all applicable state securities laws or pursuant to an exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About KWESST
KWESST (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) 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 or
Sean Homuth, President and CEO: homuth@kwesst.com or
Jennifer Welsh, Chief Financial Officer: welsh@kwesst.com or
Jason Frame, Investor Relations: frame@kwesst.com or 587-225-2599
Forward-Looking Information and 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 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/241448
FAQ
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