KWESST Micro Systems Inc. announces the closing of public offerings for USD$14.1 million in aggregate gross proceeds

KWESST Micro Systems Inc. announces the closing of public offerings for USD$14.1 million in aggregate gross proceeds.

On December 9, 2022, KWESST Micro Systems Inc. (Nasdaq: KWE, KWESW) (TSXV: KWE) (“KWESST”) completed its US IPO and Canadian offering for an aggregate gross proceeds of approximately USD $14,145,000.

Under the US IPO, KWESST sold 2,500,000 units at a public offering price of USD $4.13 per unit, consisting of one common share and one common share purchase warrant (a “Warrant”). Under the Canadian offering, KWESST sold 726,392 units, each consisting of one common share and one Warrant, at a price of USD $4.13 per unit. Each Warrant entitles its holder to purchase one common share of KWESST at price of USD $5.00 until December 9, 2027. The common shares of KWESST and the warrants sold in the U.S. Offering began trading on the Nasdaq Capital Market under the symbols “KWE” and “KWESW”, respectively, on December 7,  2022.

KWESST intends to use the aggregate net proceeds for working capital, including commercial roll-out of PARA OPS in the United States, and for the repayment of certain outstanding loans and other general corporate purposes. KWESST may also use a portion of the net proceeds for acquisitions or strategic investments in complementary businesses or technologies.

A Fasken team comprised of Frank Mariage, Sébastien Bellefleur, Martin Ferreira Pinho, Nancy Xiaoyu Liu (Corporate), and Ryan Rabinovitch, and Quentin Lageix (Tax) acted as Canadian counsel to KWESST in connection with the aforementioned offerings.