DEFSEC Technologies closes CAD$6.8 million public offering

OTTAWA - DEFSEC Technologies Inc. (NASDAQ:DFSC) (TSXV:DFSC) announced Thursday the closing of its previously announced public offering, raising approximately CAD$6.8 million in gross proceeds before deducting fees and expenses. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 4.13x, though it has been rapidly burning through cash reserves.

The tactical systems developer sold 759,879 common shares (or pre-funded warrants in lieu thereof), together with warrants to purchase up to an additional 759,879 common shares. The combined offering price was CAD$8.955 per share with accompanying warrant. The warrants have an exercise price of CAD$10.52 per share and will expire five years after issuance.

H.C. Wainwright & Co. served as the exclusive placement agent for the offering, receiving a cash fee of CAD$510,354 and 56,991 placement agent’s warrants. These warrants are exercisable for five years at CAD$11.1938 per common share.

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

The securities were offered pursuant to a registration statement on Form F-1 that was declared effective by the Securities and Exchange Commission on July 23, 2025.

DEFSEC Technologies develops tactical systems for military and security forces, including digitization of tactical forces for real-time situational awareness and countermeasures against threats such as electronic detection, lasers and drones.

The company is headquartered in Ottawa, Canada, with offices in London, UK and Abu Dhabi, UAE.

In other recent news, DEFSEC Technologies Inc. announced the pricing of a public offering expected to raise approximately CAD$6.8 million in gross proceeds. This offering includes 759,879 common shares and accompanying warrants, with the exercise price set at CAD$10.52 per share, expiring five years after issuance. The company also plans to change its name from KWESST Micro Systems Inc. to DEFSEC Technologies Inc., with the new ticker symbol "DFSC" expected to take effect around June 30, 2025, pending regulatory approvals. Additionally, KWESST Micro Systems Inc. received an initial order for prototypes of its advanced battlefield laser detection system for a major North American armored vehicle program. These prototypes are ready for delivery and will undergo performance testing. Furthermore, KWESST has filed a Form 6-K with the SEC, detailing its financial status as of March 31, 2025. The filing includes condensed consolidated interim financial statements and management’s discussion and analysis for the three and six months ended March 31, 2025.

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