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KWESST Announces Closing of Private Placement of Units for Gross Proceeds of $1.5 million
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[{"type":"text","content":"KWESST Announces Closing of Private Placement of Units for Gross Proceeds of $1.5 millionNOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATESOttawa, Ontario--(Newsfile Corp. - September 16, 2021) - KWESST Micro Systems Inc. (TSXV: KWE) (OTCQB: KWEMF) (\"KWESST\" or the \"Company\") is pleased to announce the closing of a non-brokered private placement of 750,000 units at a price of $2.00 per unit, for aggregate gross proceeds to KWESST of $1.5 million. \"The financing was provided by two investors namely a financial institution which is already a shareholder of KWESST and sought to increase its position and one new strategic investor,\" said Executive Chairman David Luxton. \"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. The Low Energy Cartridge system's official commercial launch will take place at the January 2022 SHOT Show in Las Vegas.\"Each of the 750,000 units is comprised of one common share and one common share purchase warrant (the \"Warrants\"). Each Warrant entitles its holder to acquire one additional common share of KWESST at a price of $2.35 for a period of 24 months from the closing date. In the event that the closing price of the common shares of KWESST on the TSX Venture Exchange (\"TSXV\") is at least $4.60 for a period of not less than 3 consecutive trading days, the Warrants will expire, at the sole discretion of KWESST, on the 30th day after the date on which KWESST sends a notice in prescribed form to the holders of the Warrants.In connection with the private placement, KWESST paid cash commissions to Haywood Securities Inc. in an amount of $90,000. In addition, KWESST granted finders' options to Haywood Securities Inc. entitling them to acquire up to an aggregate of 45,000 additional common shares of KWESST at a price of $2.00 per share for a period of 24 months.As a result of the closing of the private placement, there are 48,635,013 common shares of KWESST issued and outstanding. Under applicable securities legislation, the securities issued in the private placement are subject to a four-month hold period, expiring on January 16, 2022.The securi...