KWESST (TSX-V:KWE, OTCQB:KWEMF) Micro Systems Inc has told investors it closed a non-brokered private placement of 750,000 units at $2 per unit, raising gross proceeds of $1.5 million.
The tech group, which provides solutions to the military, said the financing was provided by two investors including a financial institution that is already a shareholder of KWESST (TSX-V:KWE, OTCQB:KWEMF) and sought to increase its position and one new strategic investor.
“This comes at a time when we are ramping up go-to-market efforts on all fronts, especially for our non-lethal cartridge-based firing platform called the Low Energy Cartridge system,” executive chairman David Luxton said in a statement.
“The Low Energy Cartridge system's official commercial launch will take place at the January 2022 SHOT Show in Las Vegas.”
READ: KWESST Micro Systems says group is making "steady progress" on all fronts
The company said each new unit is comprised of one common share and one common share purchase warrant, entitling the holder to acquire one additional common share at $2.35 for 24 months from the closing date.
If the closing price of the common shares of KWESST on the TSX Venture Exchange is at least $4.60 for a period of not less than three consecutive trading days, the warrants will expire, at the sole discretion of KWESST, on the 30th day after the date on which it sends a notice in a prescribed form to the holders of the warrants.
In connection with the private placement, KWESST paid a cash commission of $90,000 to Haywood Securities Inc and also granted finders' options entitling the firm to acquire up to an aggregate of 45,000 additional common shares of KWESST for $2.00 per share for 24 months.
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