KWESST increases its funding | HOSTEL
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KWESST Micro Systems Inc. (TSXV: KWE) (“KWESST” or the “Company”) announced today that it has closed additional subscriptions for the unsecured loan financing (the “Loan”) announced on March 14, 2022. These subscriptions in the amount of $200,000, bringing the total amount raised through debt financing to $2.0 million.
The Loan bears interest at the rate of 9.0% per annum, compounded monthly and not in advance, and has a maturity of thirteen months, the Company having the option of repaying all or part of the Loan, without penalty or premium, at any time prior to the close of business on the Maturity Date. In connection with the closing of additional subscriptions announced today, KWESST issued an aggregate of 100,000 common shares to the lenders, an amount equal to twenty percent (20%) of the total dollar amount of the loan divided by the price of the Company’s common shares on the TSX Venture Exchange (the “To exchange“) at market close on March 14and, 2022, or $0.40. All common shares issued pursuant to the loan were issued pursuant to prospectus exemptions from applicable securities laws.
“Given the current financial market conditions and the hostilities in Eastern Europe, we felt it was prudent to strengthen the company’s cash position at a time when it is advantageous to be able to build products for a prompt delivery of expected orders,” said David Luxton, Executive Chairman. , who added “I and other members of the Company are pleased to have participated in the loan as well as to have exercised the warrants.”
March 14and, 2022, KWESST announced that concurrently with the closing of the loan financing, the Company received exercise notices from certain holders of warrants exercisable at a price of $0.20 for a total of $120,000. Therefore, the total gross proceeds from the debt financing and the exercise of the warrants is $2,120,000. In connection with the closing of subscriptions announced today, KWESST has agreed to pay a cash finder’s fee to PI Financial Corp. in the amount of $8,000.
The securities issued under the loan are subject to a regulatory hold period of four months and one day expiring on July 16, 2022. The loan remains subject to final stock exchange approval.
KWESST develops and markets revolutionary next-generation tactical systems that meet the demands of security forces and personal defense for outrun capability against adversaries. The company’s current portfolio of unique exclusive offerings includes its unique non-lethal PARA OPSMT system with application in all non-lethal market segments including law enforcement and personal defense. KWESST is also committed to digitizing tactical forces for shared situational awareness and targeting with its situational control system TASCS) for real-time 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 drones, lasers and electronic detection. These include the standalone GreyGhostMT a soldier-portable micro-drone missile system that defends against small hostile drones, including swarms using high-velocity kinetic impact; a ground-based laser defense system to counter the emerging threat of weaponized lasers against personnel and the PhantomMT electronic battlefield decoy system to mask the electromagnetic signature of friendly forces with decoy signatures at false locations to deceive and confuse adversaries. These systems can operate stand-alone or seamlessly integrate with OEM products and battlefield management systems. The company is headquartered in Ottawa, Canada, with operations in Stafford, Virginia, and representative offices in London, UK and Abu Dhabi, United Arab Emirates. KWEST trades on the TSX Venture Exchange under the symbol KWE.
Caution Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” under applicable Canadian securities laws for the purpose of providing information about management’s current expectations and plans for the future. Forward-looking statements are necessarily based on a number of estimates and assumptions which, while believed to be reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results to differ. and future events will differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to: general business, economic, competitive, political and social uncertainties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. KWESST disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/116907