Business
KWESST Micro Systems Inc. Announces Closing of Public Offerings for $14.1 Million in Aggregate Gross Proceeds
Ottawa, Ontario--(Newsfile Corp. - December 9, 2022) - KWESST Micro Systems Inc. (NASDAQ: KWE) (N...
About this update from Defsec Technologies Inc.
[{"type":"text","content":"KWESST Micro Systems Inc. Announces Closing of Public Offerings for $14.1 Million in Aggregate Gross ProceedsOttawa, Ontario--(Newsfile Corp. - December 9, 2022) - KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) (TSXV: KWE) (the \"Company\" or \"KWESST\") today closed its previously announced underwritten U.S. public offering (the \"U.S. Offering\") and underwritten Canadian offering (the \"Canadian Offering\"). In the U.S. Offering, the Company sold 2,500,000 units at a public offering price of USD $4.13 per unit, consisting of one share of common stock and one warrant to purchase one share of common stock (\"Warrant\"). The Warrants have a per share exercise price of USD $5.00, can be exercised immediately, and expire five years from the date of issuance. In connection with the closing of the U.S. Offering, the underwriter has exercised its over-allotment option to purchase an additional 199,000 pre-funded common share purchase warrants and 375,000 warrants to purchase common shares. The underwriter has retained the right to exercise the balance of its over-allotment option within the 45-day period.In the Canadian Offering, the Company sold 726,392 units, each consisting of one common share and one warrant to purchase one common share, at a price to the public of USD $4.13 per unit. The warrants will have a per common share exercise price of USD $5.00, are exercisable immediately and expire five years from the date of issuance.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.The aggregate gross proceeds to the Company from the U.S. Offering and Canadian Offering were approximately USD $14,145,000, before deducting underwriting discounts and offering expenses. 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 of a portion of the net proceeds for acquisitions or strategic investments in complementary businesses or technologies.ThinkEquity acted as sole book-running manager for the U.S. Offering and PI Financial acted as sole book-running manager for the Canadian Offering.A registration statemen...