- KWESST Micro Systems (KWE) has closed two non-secured loans for US$200,000 per loan with a third-party lender for a total of $400,000
- The loans bear annual interest at a rate of 6.0 per cent, compounded monthly with a maturity of twelve months
- The company has the option to repay the whole or any part of the loans, without penalty or premium, at any time before the close of business on the maturity date
- KWESST commercializes breakthrough next-generation tactical systems for military and security forces and personal defence
- KWESST Micro Systems Inc. was up 3.125 per cent, trading at $0.165 as at 12:16 PM ET
KWESST Micro Systems (KWE) has closed two non-secured US$200,000 loans with a third-party lender for a total of $400,000.
The loans bear annual interest at a rate of 6.0 per cent, compounded monthly, with a maturity of twelve months.
The company has the option to repay the whole or any part of the loans, without penalty or premium, at any time prior to the close of business on the maturity date.
On repayment of the loans, KWESST shall pay 110 per cent of the principal amount plus accrued interest on the loan.
Under the terms of one of the loans, KWESST issued 296,754 common shares to the lender, an amount equal to twenty percent of US$200,000, converted to Canadian dollars at an exchange rate of $1.2983, divided by the market price of the company’s common shares on the TSX Venture Exchange at market close on August 24, 2022, being C$0.175.
At the same time as the closing of the loans, KWESST’s Executive Chairman and its President and Chief Executive Officer (the KWESST principals) entered into call-option agreements with the lender, empowering the lender with the option to purchase 741,345 common shares held by the KWESST principals for C$0.175 for five years.
KWESST commercializes breakthrough next-generation tactical systems for military and security forces and personal defence.
KWESST Micro Systems Inc. was up 3.125 per cent, trading at $0.165 as at 12:16 PM ET.
