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  • KWESST has increased the size of the private placement to raise total gross proceeds of C$4 million
  • The company has allocated 3,200,000 units to subscribers at $1.25 per unit
  • Each unit will be comprised of one common share and one common share purchase warrant
  • Proceeds will be used to accelerate go-to-market initiatives of KWESST's various products
  • KWESST develops intelligent tactical systems for military applications
  • KWESST Micro Systems (KWE) opened trading at $1.50 per share

KWESST Micro Systems (KWE) has increased the size of the private placement to raise total gross proceeds of C$4 million.

The company has allocated 3,200,000 units to subscribers at $1.25 per unit. The offering is scheduled to close on or about April 29, 2021.

The parties have agreed to remove the previously announced over-allotment option.

Each unit will be comprised of one common share and one common share purchase warrant. Each warrant shall be exercisable to acquire one common share at $1.75 for a period of 24 months from the closing of the offering.

If at any time after four months and one day following the closing date, the trading price of the shares on the TSX-V is equal to or exceeds $3 for a period of 10 consecutive trading days, KWESST may force the early exercise of the warrants by notifying warrant holders. Upon receipt of such notice, warrant holders shall have 30 days to exercise the warrants, failing which the warrants will automatically expire.

The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Exchange. 

"The KWESST Offering was very well received by investors and resulted in significant demand for our financing, which led to the increase in size announced today. The proceeds will be used to accelerate our go-to-market initiatives of KWESST's various products," said Jeffrey MacLeod, KWESST's President and CEO.

"One of our priorities is to finalize the acquisition of the Low Energy Cartridge ("LEC") non-lethal system, which is expected to close concurrently with the Offering, after which we will begin the commercialization of this product. The Company has an accelerated plan to roll out the LEC product in response to market interest and high growth across all segments of the non-lethal market where a strong preference is being expressed for a safer, cartridge-based system over traditional systems such as Taser, beanbag shotgun shells and rubber bullets that can and do result in fatalities."

Other corporate priorities to be funded with the proceeds from the offering include the productization of the GreyGhost micro-drone missile, ramping up the Company's ATAK Centre of Excellence business, and accelerating the productization of the Phantom electronic decoy.

KWESST develops and commercializes high-value ultra-miniaturized technology applications that make a critical difference to the safety and operational effectiveness of personnel in the defence and security industries.

KWESST Micro Systems (KWE) opened trading at $1.50 per share.

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