Kwesst Micro Systems said this week it has closed a brokered private placement offering to an institutional accredited investor. The move generated gross proceeds of $3.4 million.
A Kanata-based defence and security company that does millions of dollars in business with the Department of National Defence has raised more than C$3 million through a share offering in the United States.
Kwesst Micro Systems said this week it has closed a brokered private placement offering to an institutional accredited investor. The move generated gross proceeds of $3.4 million.
Kwesst, which trades on the Nasdaq in the U.S. and the TSX Venture Exchange in Canada, said it issued 4,145,200 pre-funded warrants at a price of 82.4 cents per warrant.
Each pre-funded warrant was bundled with one common share purchase warrant of the company, entitling the holder to acquire one common share at an exercise price of $1.03 per common share for a period of 60 months following the closing of the offering.
Kwesst said it intends to use the net proceeds from the offering for “general working capital purposes.”
Earlier this year, Kwesst announced it was awarded a subcontract by defence giant Thales Canada to deliver specialized software services to the Canadian Army.
Before landing that deal, the company landed a five-year, multimillion-dollar contract in the spring of 2023 to perform software engineering services for DND. Last December, it announced that retired Gen. Rick Hillier, who served as chief of the Canadian defence staff from 2005-08, had joined its board of directors and would chair the firm’s strategic planning committee.
The firm, which has more than 30 employees, specializes in three main product lines – systems that feed real-time information to soldiers in the field; measures that counteract deadly lasers and other space-age weaponry; and equipment such as high-tech anti-riot munitions designed to subdue aggressive protesters and other belligerents. 
