KWESST Micro Systems Inc (CVE:KWE) (OTCQB:KWEMF) announce the closing of its oversubscribed private placement that raised more than C$4.4 million.
Proceeds from the offering will go towards accelerating the technology firm’s go-to-market strategy for its portfolio of products.
Additionally, the Ottawa-based company said it had closed a technology purchase agreement with DEFSEC Corporation to acquire a proprietary non-lethal munitions technology system known as the Low Energy Cartridge technology.
READ: KWESST Micro Systems to acquire non-lethal munitions technology from DEFSEC
KWESST issued DEFSEC 1 million shares and 500,000 warrants exercisable at C$0.70 as part of the deal, which was first announced in January 2021.
"With the acquisition of the LEC Technology now completed, we will begin the commercialization of this product with an accelerated plan in response to market interest and high growth across all segments of the non-lethal market, where a strong preference is being expressed for a safer, cartridge-based system over traditional systems, such as taser, beanbag shotgun shells and rubber bullets, which can and do result in fatalities,” KWESST CEO Jeffrey MacLeod said in a statement.
"Other corporate priorities to be financed with the proceeds from the offering also include the productization of the GreyGhost microdrone missile, ramping up the company's ATAK Centre of Excellence business and accelerating the productization of the Phantom electronic decoy."
Under the terms of the placement, KWESST issued 3,536,057 units of the company at a price of $1.25 per unit for gross proceeds of C$4,420,071.25.
Each unit is comprised of one share of the company and one warrant exercisable at a price of C$1.75 per share for a period of 24 months from the closing of the offering. The warrants are subject to acceleration if KWESST’s shares trade at or about $3 for 10 days within a four-month period following the closing date.
PI Financial Corp acted as lead agents in the financing.
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