DEFSEC prices $6.8 million public offering of common shares

OTTAWA - DEFSEC Technologies Inc. (NASDAQ:DFSC) (TSXV:DFSC) announced Thursday the pricing of a public offering expected to raise approximately CAD$6.8 million in gross proceeds before deducting fees and expenses. The micro-cap defense technology firm, currently valued at $4.1 million, appears undervalued according to InvestingPro analysis, despite seeing its shares decline over 89% in the past year.

The defense technology company is offering 759,879 common shares (or pre-funded warrants in lieu thereof) together with common share purchase warrants at a combined public offering price of CAD$8.955 per share and accompanying warrant. The warrants will have an exercise price of CAD$10.52 per share, are exercisable upon issuance, and will expire five years after issuance.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering, which is expected to close on or about Friday, subject to customary closing conditions.

According to the company’s press release statement, DEFSEC intends to use the net proceeds for working capital and general corporate purposes.

The securities are being offered pursuant to a registration statement on Form F-1 that was declared effective by the Securities and Exchange Commission on Wednesday.

DEFSEC Technologies develops tactical systems for military and security forces, including digitization of tactical forces for real-time shared situational awareness and targeting information. The company is headquartered in Ottawa with offices in London and Abu Dhabi.

The offering remains subject to approval from the TSX Venture Exchange.

In other recent news, KWESST Micro Systems Inc. has filed a Form 6-K with the United States Securities and Exchange Commission. This filing includes the company’s condensed consolidated interim financial statements for the three and six months ended March 31, 2025, providing insight into its financial condition and results of operations. Additionally, KWESST announced plans to change its corporate name to "DEFSEC Technologies Inc." and its ticker symbol to "DFSC," pending regulatory approvals, with an expected effective date around June 30, 2025. The company’s legal entity will remain unchanged, and shareholders are not required to take any action. In another development, KWESST received an initial order for prototypes of its newest battlefield laser detection system from a defense systems integrator for a major North American armored vehicle program. These prototypes are ready for delivery and will undergo performance testing in various operational environments. These recent developments highlight KWESST’s ongoing activities and strategic initiatives.

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