KWESST Micro Systems Inc. Announces Pricing of United States Public Offering
KWESST Micro Systems has announced the pricing of its U.S. public offering, set at $0.58 per share for 2.9 million common shares, expecting to raise approximately $1.682 million before fees and expenses. The offering is planned to close on June 14, 2024, pending customary conditions. ThinkEquity is the sole placement agent. The proceeds will be used for working capital, general corporate purposes, and advancing business goals. The offering is pursuant to a prospectus supplement filed with the SEC.
- Public offering priced at $0.58 per share with approximately $1.682 million expected in gross proceeds.
- Proceeds aimed at working capital, corporate purposes, and business advancement.
- Offering expected to be completed swiftly by June 14, 2024.
- ThinkEquity acting as sole placement agent, indicating strong backing.
- Potential shareholder dilution due to the issue of 2.9 million new shares.
- Net proceeds will be reduced by placement agent fees and offering expenses.
Insights
KWESST Micro Systems Inc. has announced a public offering of 2,900,000 common shares at
From a financial perspective, this offering could provide the necessary liquidity for KWESST to pursue its strategic initiatives. However, issuing new shares often leads to stock dilution, which can negatively impact existing shareholders by reducing their ownership percentage. While the infusion of capital can be seen as a positive, it's essential to consider the potential drawbacks of such dilution on shareholder value in the short term.
The involvement of ThinkEquity as the sole placement agent suggests a level of confidence in the market's reception of the offering. Yet, the ultimate success of this raise will depend on investor perception and the company's ability to effectively utilize the funds to enhance its business operations and growth prospects.
The public offering by KWESST Micro Systems Inc. is set to close shortly, subject to customary conditions. This move will likely influence the market's perception of the company's near-term financial health and operational capabilities. A public offering at this scale signals that KWESST is in need of immediate funds to support its working capital and corporate purposes.
A key point for retail investors to consider is how KWESST plans to allocate these funds. The mention of 'general corporate purposes' leaves room for broad interpretation, but it typically includes areas such as research and development, marketing efforts and potential future acquisitions or partnerships. The market's response will hinge on how transparent and effective KWESST is in communicating and executing these plans.
Additionally, considering the current economic environment and investor sentiment toward technology and defense sectors, the timing of this offering could be both an opportunity and a challenge. Investors should monitor the company's subsequent disclosures and performance to gauge the true impact of this capital raise.
Ottawa, Ontario--(Newsfile Corp. - June 12, 2024) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) (TSXV: KWE.WT.U) ("KWESST" or the "Company"), today announced the pricing of its best efforts public offering of 2,900,000 common shares at a public offering price of US
ThinkEquity is acting as the sole placement agent for the offering.
The Company intends to use the net proceeds from the offering primarily for working capital requirements, general corporate purposes and the advancement of its business objectives.
The securities will be offered and sold pursuant to a prospectus supplement to the Company's shelf registration statement on Form F-3 (File No. 333-277196), including a base prospectus, filed with the United States Securities and Exchange Commission (the "SEC") on February 20, 2024 and declared effective on March 4, 2024. The offering will be made only by means of a written prospectus. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC on its website at www.sec.gov/edgar. Copies of the prospectus supplement and the accompanying prospectus relating to the offering may also be obtained, when available, from the offices of ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an 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) (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 with operations in Guelph, Ontario Canada, and Youngsville, North Carolina, USA as well as representative offices in London, UK and Abu Dhabi, UAE.
For more information, please visit https://kwesst.com/
Contact:
Kris Denis, CFO and Chief Compliance Officer: denis@kwesst.com 613-250-9752
David Luxton, Executive Chairman: luxton@kwesst.com
Sean Homuth, President and CEO: homuth@kwesst.com
Jason Frame, Investor Relations: frame@kwesst.com 587.225.2599
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 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/212780
FAQ
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