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OTTAWA, Ontario - KWESST Micro Systems Inc. (TSXV: KWE) (NASDAQ: KWE), a developer of next-generation tactical systems for military and security forces, has announced a share consolidation to maintain compliance with Nasdaq’s minimum bid price requirements. The consolidation will be effective at the beginning of trading on the Nasdaq Capital Market today and on the TSX Venture Exchange (TSXV) tomorrow. According to InvestingPro data, the company’s market capitalization has declined to $0.12 million, with the stock price falling nearly 97% over the past year.
The company’s consolidation will see its common shares consolidated on a twenty-one to one basis. Despite the change in the number of outstanding shares, the number of issued and outstanding Share purchase warrants, which trade on the TSXV under the symbol "KWE.WT.U" and on Nasdaq under "KWESW," will remain unaffected. However, the consolidation will alter the terms of these warrants. After the consolidation, two hundred and ten Listed Warrants will be needed to purchase one post-consolidation share, with the exercise price set at US$1,050.00 per share. No fractional shares will be issued upon the exercise of any warrants. InvestingPro analysis reveals the company maintains a healthy current ratio of 2.57, indicating sufficient liquidity to meet short-term obligations, though it’s currently experiencing rapid cash burn.
Trading of the company’s securities was halted on April 23, 2025, due to the effective date discrepancy between the two markets and will resume on a consolidated basis on both the Nasdaq and the TSXV at market open on April 24, 2025. The new CUSIP number for the post-consolidation shares will be 501506802, and the new ISIN will be CA5015068029.
KWESST’s portfolio includes systems for digitization of tactical forces, countermeasures against electronic detection, lasers, drones, and a proprietary non-lethal product line branded PARA OPS™. The company is headquartered in Ottawa, Canada, with representative offices in London, UK, and Abu Dhabi, UAE. Financial metrics from InvestingPro show the company trading at a low Price/Book multiple of 0.03, with revenue growth of 116% in the last twelve months. Subscribers can access 12 additional ProTips and comprehensive financial analysis for KWESST.
The consolidation aims to ensure the company’s compliance with Nasdaq’s listing standards, specifically the minimum bid price requirement. This move is part of KWESST’s efforts to align its capital structure with its strategic goals and to potentially enhance shareholder value, particularly important given the stock’s significant decline of over 91% in the past six months.
This news is based on a press release statement from KWESST Micro Systems Inc. and is intended to provide shareholders and the market with information about the company’s share consolidation.
In other recent news, KWESST Micro Systems Inc. announced a share consolidation on a 21-to-1 basis to comply with Nasdaq’s minimum bid price requirement. This decision, approved by shareholders, reduces the company’s outstanding shares from 11,137,638 to approximately 530,363. The consolidation will not impact the number of outstanding share purchase warrants, but it will adjust the shares issuable upon exercise and the exercise price. In another development, KWESST has formed a strategic partnership with Nordon Inc., a U.S.-based contract manufacturer, to expand its manufacturing capabilities in the United States. This partnership, solidified through a non-binding memorandum of understanding, aims to finalize a manufacturing agreement by June 1, 2025. The collaboration will focus on producing KWESST’s ARWEN™ and PARA OPS™ products to improve market access and streamline logistics in the U.S. market. KWESST’s President and CEO, Sean Homuth, emphasized the benefits of this move for product availability and regulatory compliance. Meanwhile, Nordon CEO Paul Reed highlighted the partnership’s potential for domestic job creation and economic growth.
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