KWESST Micro Systems (KWE) Prices 2.5M Units at $4.13

KWESST Micro Systems Inc. (NASDAQ: KWE) (NASDAQ: KWESW) announced the pricing of an underwritten U.S. public offering of 2,500,000 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 have a per share exercise price of USD $5.00, can be exercised immediately, and expire five years from the date of issuance. The common shares and warrants that are part of the units can only be purchased together in the offering but will be issued separately. In addition, the Company has granted the underwriter a 45-day option to purchase up to an additional 375,000 common shares and/or pre-funded common share purchase warrants and/or 375,000 warrants to purchase common shares to cover over-allotments, if any.

In a simultaneous underwritten Canadian offering, the Company will be issuing 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 "Canadian Offering"). 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 aggregate gross proceeds from both offerings will be approximately USD $13,325,000, 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.

The common shares of KWESST and the warrants to be issued in the U.S. public offering, are expected to begin trading on the Nasdaq Capital Market on December 7, 2022 under the symbols "KWE" and "KWESW", respectively. The US public offering and the Canadian Offering are expected to close on December 9, 2022, subject to satisfaction of customary closing conditions.

ThinkEquity is acting as sole book-running manager for the U.S. public offering and PI Financial is acting as sole book-running manager for the Canadian Offering.

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