KWESST Provides Context on Special Shareholder Meeting Scheduled on March 31 in Connection with a Proposed Share Consolidation
KWESST Micro Systems (NASDAQ: KWE) has scheduled a special shareholder meeting for March 31, 2025, to vote on a proposed share consolidation. The meeting aims to address Nasdaq compliance issues after receiving a notification on May 16, 2024, regarding non-compliance with the minimum bid price requirement of US$1.00 per share.
Despite completing a 10:1 share consolidation on October 23, 2024, and receiving an extension until May 12, 2025, to meet compliance, the company now seeks shareholder approval for another consolidation of up to 25:1. The resolution requires majority approval from shareholders. If not approved, KWESST faces potential delisting from Nasdaq as no further extensions will be granted after May 12, 2025.
KWESST Micro Systems (NASDAQ: KWE) ha programmato un'assemblea straordinaria degli azionisti per il 31 marzo 2025, per votare su una proposta di consolidamento delle azioni. L'incontro ha l'obiettivo di affrontare le questioni di conformità con il Nasdaq dopo aver ricevuto una notifica il 16 maggio 2024, riguardante la non conformità con il requisito di prezzo minimo di offerta di 1,00 USD per azione.
Nonostante abbia completato un consolidamento delle azioni di 10:1 il 23 ottobre 2024 e ricevuto un'estensione fino al 12 maggio 2025 per soddisfare i requisiti di conformità, l'azienda ora cerca l'approvazione degli azionisti per un ulteriore consolidamento fino a 25:1. La risoluzione richiede l'approvazione della maggioranza degli azionisti. Se non approvata, KWESST rischia una potenziale esclusione dal Nasdaq poiché non verranno concesse ulteriori estensioni dopo il 12 maggio 2025.
KWESST Micro Systems (NASDAQ: KWE) ha programado una reunión extraordinaria de accionistas para el 31 de marzo de 2025, para votar sobre una propuesta de consolidación de acciones. La reunión tiene como objetivo abordar cuestiones de cumplimiento con Nasdaq tras recibir una notificación el 16 de mayo de 2024, sobre el incumplimiento del requisito de precio mínimo de oferta de 1,00 USD por acción.
A pesar de haber completado una consolidación de acciones de 10:1 el 23 de octubre de 2024 y de haber recibido una extensión hasta el 12 de mayo de 2025 para cumplir con las normas, la empresa ahora busca la aprobación de los accionistas para otra consolidación de hasta 25:1. La resolución requiere la aprobación de la mayoría de los accionistas. Si no se aprueba, KWESST enfrenta una posible exclusión de Nasdaq ya que no se otorgarán más extensiones después del 12 de mayo de 2025.
KWESST Micro Systems (NASDAQ: KWE)는 2025년 3월 31일 주주 총회를 열어 제안된 주식 통합안에 대해 투표할 예정입니다. 이 회의는 2024년 5월 16일에 받은 통지에 따라 Nasdaq 준수 문제를 다루기 위한 것입니다. 이 통지는 주당 최소 입찰 가격 요구 사항인 1.00 USD를 준수하지 않았음을 알리고 있습니다.
2024년 10월 23일에 10:1 주식 통합을 완료하고 2025년 5월 12일까지 준수를 위한 연장을 받은 후에도, 회사는 이제 최대 25:1의 추가 통합을 위해 주주 승인을 요청하고 있습니다. 이 결의안은 주주들의 과반수 승인을 요구합니다. 승인이 이루어지지 않으면 KWESST는 Nasdaq에서 상장 폐지될 위험에 처하게 됩니다, 2025년 5월 12일 이후에는 추가 연장이 허용되지 않기 때문입니다.
KWESST Micro Systems (NASDAQ: KWE) a programmé une assemblée générale extraordinaire des actionnaires pour le 31 mars 2025, afin de voter sur une proposition de consolidation des actions. Cette réunion vise à traiter les problèmes de conformité avec le Nasdaq après avoir reçu une notification le 16 mai 2024 concernant le non-respect de l'exigence de prix d'offre minimum de 1,00 USD par action.
Malgré l'achèvement d'une consolidation des actions de 10:1 le 23 octobre 2024 et l'obtention d'une prolongation jusqu'au 12 mai 2025 pour se conformer, l'entreprise cherche maintenant l'approbation des actionnaires pour une autre consolidation allant jusqu'à 25:1. La résolution nécessite l'approbation de la majorité des actionnaires. Si elle n'est pas approuvée, KWESST risque une exclusion potentielle du Nasdaq car aucune prolongation supplémentaire ne sera accordée après le 12 mai 2025.
KWESST Micro Systems (NASDAQ: KWE) hat eine außerordentliche Hauptversammlung der Aktionäre für den 31. März 2025 einberufen, um über einen vorgeschlagenen Aktientausch abzustimmen. Die Sitzung zielt darauf ab, Compliance-Probleme mit Nasdaq zu klären, nachdem am 16. Mai 2024 eine Mitteilung über die Nichteinhaltung des Mindestgebots von 1,00 USD pro Aktie eingegangen ist.
Trotz der Durchführung eines 10:1 Aktientauschs am 23. Oktober 2024 und einer Verlängerung bis zum 12. Mai 2025 zur Einhaltung der Vorschriften, sucht das Unternehmen nun die Zustimmung der Aktionäre für einen weiteren Austausch von bis zu 25:1. Der Beschluss erfordert die Mehrheit der Zustimmung der Aktionäre. Wenn dies nicht genehmigt wird, droht KWESST eine mögliche Delistung von Nasdaq, da nach dem 12. Mai 2025 keine weiteren Verlängerungen gewährt werden.
- Company received extension until May 12, 2025 to meet Nasdaq compliance
- Company faces potential Nasdaq delisting if share price remains below US$1.00
- Previous 10:1 share consolidation in October 2024 failed to maintain compliance
- Proposed up to 25:1 share consolidation indicates significant share price weakness
Insights
KWESST's proposed share consolidation of up to 1-for-25 represents a critical compliance measure after failing to maintain Nasdaq's minimum bid price requirement despite a previous 1-for-10 consolidation completed in October 2024. The company faces potential delisting if it doesn't regain compliance by May 12, 2025, with no further extensions available.
This second consolidation attempt within a short timeframe signals persistent underlying weakness in maintaining share value. At the current price of
Reverse splits typically don't change a company's fundamental valuation (maintaining the
The board seeking authorization for consolidation "up to" 1-for-25 provides flexibility in determining the final ratio, but the requirement for such a substantial consolidation after a previous 10:1 attempt highlights concerning share price deterioration. While maintaining Nasdaq listing preserves institutional access and certain capital raising capabilities, the underlying factors driving share price weakness remain unaddressed in this purely mechanical solution.
Ottawa, Ontario--(Newsfile Corp. - March 18, 2025) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) (TSXV: KWE.WT.U) ("KWESST" or the "Company") announces that it has filed notice of a meeting of shareholders, a management information circular, and related documents (collectively, the "Meeting Materials") to convene a special meeting (the "Meeting") of shareholders. The Meeting will take place on March 31, 2025 at 4:00 pm (Eastern Time). Copies of the Meeting Materials are available for review under the profile for the Company on SEDAR+ (www.sedarplus.ca) and on KWESST's website (https://kwesst.com).
The Meeting has been convened to seek shareholder approval of a resolution (the "Consolidation Resolution"), authorizing, if deemed advisable by the board of directors, the consolidation of the issued and outstanding Common Shares of the Company on the basis of one share for a maximum of every twenty-five (25) Common Shares issued and outstanding (the "Share Consolidation").
By way of background to the Share Consolidation, on May 16, 2024, the Company received a notification letter (the "Notification Letter") from the Nasdaq Stock Market ("Nasdaq") advising the Company that it was not in compliance with Nasdaq Listing Rule 5550(a)(2), as the bid price of the Company's Common Shares on Nasdaq had closed at less than US
On October 23, 2024, the Company completed a consolidation of its issued and outstanding common shares on the basis of ten (10) pre-consolidation shares for each one (1) post-consolidation share. On November 13, 2024, the Company received a letter from Nasdaq, notifying the Company that it was eligible for an additional 180 calendar day period, or until May 12, 2025, to regain compliance with the Minimum Bid Price Requirement.
Accordingly, Shareholders will be asked to approve a resolution authorizing the Share Consolidation in order to regain compliance with the Minimum Bid Price Requirement. In order to be adopted, the Consolidation Resolution must be approved by the majority of the votes cast by the holders of the Common Shares, either present in person or represented by proxy at the Meeting.
If the Consolidation Resolution is not adopted by the Shareholders, there may be serious, adverse effects on the Company and the Shareholders, notably the delisting from Nasdaq if the Common Shares continue to trade below the requisite US
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) 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 to the Consolidation Resolution and the ability of KWESST to maintain compliance with regulatory requirements following the Consolidation, notably the Mininum 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/245052