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KWESST (TSXV:KWE) raises $1.9M though financing and warrants exercise

Defence
TSXV:KWE
14 March 2022 12:30 (EDT)

KWESST Micro Systems (KWE) has closed a non-secured loan financing with various lenders and has received Notices of Exercise from warrant holders.

The company has also received $120,000 Notices of Exercise from certain warrant holders.

The loan bears interest at a rate of 9.0 per cent per annum, compounded monthly and matures in thirteen months. KWEEST has the option to repay the whole or any part of the loan, without penalty or premium, at any time prior to the maturity date. As part of the terms of the loan, KWESST issued an aggregate of 900,000 common shares to the lenders. 

“Given current financial market conditions and hostilities in Eastern Europe, we felt it was prudent to strengthen the company’s cash position at a time when it is advantageous to be able to build product for ready delivery of expected orders,” said David Luxton, Executive Chairman.

“I, and others in the company, are pleased to have participated in the Loan as well as exercising warrants.”

KWESST has received Notices of Exercise from certain holders of warrants exercisable at a price of $0.20 for a total of $120,000. As a result, the gross proceeds from the loan and the exercise of warrants totals $1,920,000.

In connection with the private placement, KWESST agreed to pay a $52,000 cash finder’s fee to PI Financial Corp.

KWESST develops and commercializes breakthrough next-generation tactical systems that meet the requirements of security forces and personal defence for overmatch capability against adversaries.

KWESST Micro Systems Inc. (KWE) is down 3.75 per cent, trading at C$0.385 per share at 12:30 pm EST.

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