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KWESST Announces Closing of Private Placement of Units for Gross Proceeds of $344,000
Not for Distribution to U.S. Newswire Services or for Release, Publication, Distribution or Di...
About this update from Defsec Technologies Inc.
[{"type":"text","content":"KWESST Announces Closing of Private Placement of Units for Gross Proceeds of $344,000Not 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. - July 14, 2022) - 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 1,600,000 units at a price of $0.215 per unit, for aggregate gross proceeds to KWESST of $344,000.\"As a result of a close business associate's expression of interest to further increase their investment in the Company, along with certain insiders, we welcome this additional capital to finance our near-term working requirements,\" said Executive Chairman David Luxton.Each of the 1,600,000 units is comprised of one common share and one-half common share purchase warrant (the \"Warrants\"). Each Warrant entitles its holder to acquire one additional common share of KWESST at a price of $0.285 for a period of 24 months from the closing date. There was no finder fee paid in this private placement. As a result of the closing of the private placement, there are 53,759,640 common shares of KWESST issued and outstanding. Directors and officers of KWESST (the \"Insiders\") purchased 406,975 Units for a total consideration of $87,500. The issuance of Units to the Insiders constitutes a related party transaction but is exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\") as KWESST's securities are not listed on any stock exchange identified in Section 5.5(b) of MI 61-101 and neither the fair market value of the units issued to the Insiders, nor the fair market value of the entire private placement, exceeds 25% of the Company's market capitalization. KWESST did not file a material change report with respect to the participation of the Insiders at least 21 days prior to the closing of the Offering as the insiders' participations were not determined at that time.All securities issued in connection with the private placement are subject to a statutory hold period in Canada expiring four (4) months and one (1) day from the closing of the Offering. Th...