KWESST Micro Systems Inc (CVE:KWE) (OTCQB:KWEMF) announced a C$2.5 million financing on Tuesday afternoon to commercialize the recently acquired Low Energy Cartridge non-lethal system.
The private placement, led by PI Financial Corp, consists of up to 2 million units of the company at a price of C$1.25 per unit.
Each unit consists of one share and one warrant exercisable at a price of C$1.75 for a period of 24 months from the closing of the offering and subject to acceleration if the trading price of the shares on the TSX Venture Exchange is equal to, or exceeds, $3 for a period of 10 consecutive trading days in a four month and one-day period following closing.
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Upon receipt of an acceleration notice, the holders of warrants will have 30 days to exercise the warrants, failing which the warrants will automatically expire.
The agents will have an option to offer for sale up to an additional 400,000 units at the offering price for additional gross proceeds of up to C$500,000, exercisable in whole or in part at any time up to 48 hours prior to the closing of the offering.
Proceeds from the financing will be used to close the acquisition of the Low Energy Cartridge non-lethal system and begin the commercialization of the product, as well as accelerate work on the GreyGhost micro-drone missile.
Additional funds will be used to ramp up the company's ATAK Centre of Excellence and develop of the Phantom electronic decoy.
The offering is expected to close by April 29.
Ottawa-based KWESST develops and commercializes high-value ultra-miniaturized technology applications for personnel in the defense and security industries.
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