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KWESST Announces Shares for Debt Settlements
Ottawa, Ontario--(Newsfile Corp. - December 7, 2022) - KWESST Micro Systems Inc. (NASDAQ: KWE) (N...
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[{"type":"text","content":"KWESST Announces Shares for Debt SettlementsOttawa, Ontario--(Newsfile Corp. - December 7, 2022) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) (FSE: 62U) (\"KWESST\" or \"the Company\") today announced that it has entered into share for debt arrangements with existing lenders, subject to the closing of the U.S. public offering, the pricing for which was announced on December 6, 2022. This will result in issuing 56,141 units (the \"Units\") to settle loans in an aggregate amount of USD$232,112, including unpaid accrued interest (the \"Debt Settlements\"). Each Unit is comprised of one common share in the capital of KWESST and one common share purchase warrant (a \"Warrant\"). Each Warrant will entitle its holder to purchase one additional common share of KWESST for a period of five years from closing at an exercise price of US$5.00 per share.The Board of Directors and Management of KWESST believe that the Debt Settlements are in the best interests of KWESST as it will help it preserve its cash position. The Units, as well as the common shares and Warrants, to be issued pursuant to the Debt Settlements will be subject to a four-month hold period pursuant to applicable securities regulations and the policies of the TSX Venture Exchange (the \"TSXV\").The Debt Settlements are subject to the closing of the Company's U.S. public offering (see KWESST's press release dated December 6, 2022) and to regulatory approval, including that of the TSXV.Additionally, as disclosed in our new release dated April 25, 2022, KWESST has engaged RedChip Companies (\"RedChip\") to lead its investor relations (\"IR\") efforts. RedChip is a world leader in investor relations, financial media, and research for microcap and small-cap stocks. It is a private company headquartered in Orlando, Florida, with affiliates in New York and Pittsburgh. RedChip services to KWESST include the development of IR strategy and the IR components of KWESST's website, oversight of press releases and conference scripts, CEO video interviews, periodic investor roadshow meetings, and daily outbound calls to family offices, analysts, portfolio managers, and high net worth investors. The term of the agreement with RedChip, an arm's length party to KWESST, is for 12 months from April 25, 2022. RedChip has no interest, directly or indirectly, in KWESST or its...