KWESST Micro Systems Inc (CVE:KWE) (OTCQB:KWEMF) and lead agent PI Financial Corp, have agreed to upsize the company’s previously announced brokered private placement to raise total gross proceeds of $4 million, up from C$2.5 million.
The company now intends to issue 3.2 million units at a price of C$1.25 per unit. The 3.2 million units have been allocated to subscribers and the offering is scheduled to close on or about April 29, 2021. Given the upsize, the parties have agreed to remove the over-allotment option.
“The KWESST offering was very well received by investors and resulted in significant demand for our financing, which led to the increase in size announced today. The proceeds will be used to accelerate our go-to-market initiatives of KWESST’s various products,” KWEST founder CEO Jeff MacLeod said in a statement.
READ: KWESST hits the mark by creating “timely technology” for the global defense and homeland security market
“One of our priorities is to finalize the acquisition of the Low Energy Cartridge (LEC) non-lethal system, which is expected to close concurrently with the offering, after which, we will begin the commercialization of this product,” he added.
MacLeod noted that KWESST has an “accelerated plan” to roll out the LEC product in response to market interest and high growth across all segments of the non-lethal market.
“There’s a strong preference being expressed for a safer, cartridge-based system over traditional systems such as Taser, beanbag shotgun shells and rubber bullets that can and do result in fatalities,” pointed out MacLeod.
The money will also be funneled into the productization of the GreyGhost micro-drone missile, ramp-up the company’s ATAK Centre of Excellence, and development of the Phantom electronic decoy.
Each unit will consist of one share and one share purchase warrant. Each warrant will be exercisable to acquire a share at a price of C$1.75 per warrant share for a period of 24 months from the closing. If at any time after four months and one day following the closing date, the trading price of the shares on the TSX Venture Exchange is equal or exceeds $3 for a period of 10 consecutive trading days, the company shall be entitled to notify warrant holders of its intention to force the exercise of the warrants. The warrant holders shall have 30 days to exercise the warrants.
The Ottawa-headquartered company is a leader in advancing the modern networked capability of soldiers and responders with niche applications that make a critical difference for safety and effectiveness. KWESST has representative offices in Washington, London, the UK and Abu Dhabi.
Contact the author Uttara Choudhury at [email protected]
Follow her on Twitter: @UttaraProactive
Story by ProactiveInvestors
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