Kwesst Micro Sys - KWE STOCK NEWS

KWESST Micro Systems (NASDAQ: KWE) has announced a 1-for-21 share consolidation effective April 23, 2025, following shareholder approval on March 31, 2025. The consolidation will reduce the company's outstanding shares from 11,137,638 to approximately 530,363 shares.

The primary objective is to increase the bid price to maintain Nasdaq Capital Market listing compliance. Post-consolidation, the company will retain its name and trading symbols, with new CUSIP (501506802) and ISIN (CA5015068029) numbers.

The consolidation affects the company's Listed Warrants, requiring 21 warrants to purchase one post-consolidation share at an adjusted exercise price of US$1,050.00. Registered shareholders will receive instructions for exchanging their share certificates, while brokerage account holders require no action.

KWESST Micro Systems (NASDAQ: KWE) announced the results of its special shareholder meeting held virtually on March 31, 2025. Shareholders approved a resolution authorizing the board to implement a share consolidation of up to 25:1 ratio.

The consolidation initiative aims to help KWESST regain compliance with Nasdaq's minimum bid price requirement under Listing Rule 5550(a)(2). The board will determine the final consolidation ratio and timing, pending regulatory approval.

KWESST Micro Systems (NASDAQ: KWE) has announced a strategic manufacturing expansion into the United States through a partnership with Nordon Inc. in Rochester, New York. The companies signed a non-binding MOU on March 27, 2025, with plans to finalize a long-term manufacturing agreement by June 1, 2025.

Nordon, a HUBZone-certified manufacturer, will produce KWESST's ARWEN™ less-lethal universal 40mm baton projectile and has completed tooling for PARA OPS™ cartridges and projectiles under the ARWEN™ brand. The partnership aims to eliminate trade barriers, reduce tariffs, and strengthen North American supply chain operations.

This U.S. manufacturing initiative will support domestic job creation while maintaining KWESST's primary manufacturing presence in Canada for the Canadian market.

KWESST Micro Systems (NASDAQ: KWE) has scheduled a special shareholder meeting for March 31, 2025, to vote on a proposed share consolidation. The meeting aims to address Nasdaq compliance issues after receiving a notification on May 16, 2024, regarding non-compliance with the minimum bid price requirement of US$1.00 per share.

Despite completing a 10:1 share consolidation on October 23, 2024, and receiving an extension until May 12, 2025, to meet compliance, the company now seeks shareholder approval for another consolidation of up to 25:1. The resolution requires majority approval from shareholders. If not approved, KWESST faces potential delisting from Nasdaq as no further extensions will be granted after May 12, 2025.

KWESST Micro Systems announced the closing of the first tranche of a private placement, raising CAD$3.5 million (US$2.5 million) from accredited and institutional investors. The company issued 903,700 common shares and 2,884,179 pre-funded warrants at CAD$0.928 per share/warrant.

Each share/warrant was bundled with a common warrant exercisable at CAD$1.16 for 60 months. ThinkEquity, acting as sole placement agent, received a 7.5% cash fee (CAD$263,636) and 189,394 placement agent warrants. Due to investor interest, KWESST is increasing the offering with a second tranche of approximately CAD$142,070, expected to close by February 25, 2025.

The net proceeds will be used for general working capital purposes. The securities have not been registered under the U.S. Securities Act and are subject to TSX Venture Exchange approval.

KWESST Micro Systems Inc. (NASDAQ: KWE) has announced a CAD$3.5 million private placement (approximately US$2.5 million) through definitive securities purchase agreements with accredited and institutional investors. The company will issue 3,787,879 common shares and/or pre-funded warrants at CAD$0.928 per share.

Each share or pre-funded warrant comes bundled with a common warrant, exercisable at CAD$1.16 per share for 60 months after closing. ThinkEquity, acting as sole placement agent, will receive a 7.5% cash fee and warrants to purchase 5% of the pre-funded warrants sold. The proceeds will be used for general working capital purposes.

The offering remains subject to TSX Venture Exchange approval and has not been registered under the U.S. Securities Act.

KWESST Micro Systems reported strong Q1 2025 financial results, with revenue increasing by 588% compared to Q1 2024. The company achieved a gross profit of $0.4 million with a 45.6% margin, compared to a loss in the previous year. Growth was driven by government contracts (DSEF & Land C4ISR), a Lightning SaaS pilot with Canadian Red Cross, and ARWEN business expansion.

The company completed a public offering raising $4.9 million and secured a $250,000 receivables facility. KWESST implemented a 10:1 share consolidation to maintain Nasdaq compliance and has until May 12, 2025, to meet the minimum bid requirement. The company also announced volume production of ARWEN cartridges, including new 40mm baton rounds.

KWESST Micro Systems (NASDAQ: KWE) has announced key management changes effective February 3, 2025. Jennifer Welsh has been appointed as Chief Financial Officer and Chief Compliance Officer, replacing interim CFO Kris Denis. Welsh brings 20 years of experience, including 18 years with Canadian public companies, most recently serving as VP Finance at SNDL Inc. At Indiva , she helped grow the company to over CAD $35 million in net annual revenue.

Additionally, James Yersh has been appointed as a director and Chair of the Audit Committee. Yersh has over two decades of senior executive experience in technology companies, currently serving as Chief Revenue Officer, Senior Care at PointClickCare. His previous roles include CFO positions at notable companies like Mitel, Blackberry, and KORE Wireless.

KWESST Micro Systems reported its fiscal 2024 financial results, showing a 22% revenue increase over fiscal 2023. Key highlights include:

- Gross profits of $0.5 million (32.3% margin) compared to -$0.2 million (-15.5% margin) in 2023
- Net loss reduced by $1.9 million to $7.4 million
- EBITDA loss decreased 20% to $6.0 million
- Revenue growth driven by DSEF and Land C4ISR government contracts

The company expects revenue to increase with the commercial launch of KWESST Lightning™ in 2025, along with anticipated demand for new ARWEN 40mm ammunition and PARA OPS products. Operating expenses decreased by $1.6 million (14%) compared to 2023, reflecting cost management efforts and strategic investments in key growth areas.