KWESST expands US manufacturing with new partnershi

OTTAWA - KWESST Micro Systems Inc. (NASDAQ: KWE) (TSXV: KWE), a developer of next-generation tactical systems with a market capitalization of $3.05 million, has announced a strategic partnership with Nordon Inc., a contract manufacturer in the United States. This collaboration is aimed at expanding KWESST’s manufacturing capabilities into the U.S. market, marking a significant step in the company’s growth strategy. According to InvestingPro data, the company has demonstrated strong revenue growth of 116.3% over the last twelve months, despite challenging market conditions.

Under a non-binding memorandum of understanding signed on March 27, 2025, the two companies will work towards finalizing a manufacturing agreement by June 1, 2025. The agreement will focus on the production of KWESST’s ARWEN™ less-lethal universal 40mm baton projectile and PARA OPS™ cartridges and projectiles, which will be marketed under the ARWEN™ brand. While the company maintains a healthy current ratio of 2.57, InvestingPro analysis indicates the company is quickly burning through cash, making this manufacturing partnership particularly strategic.

Nordon, a HUBZone-certified manufacturer located near Rochester, New York, has completed tooling for the majority of the components for the PARA OPS™ products. The HUBZone certification is part of a U.S. Small Business Administration initiative that supports economic growth in historically underutilized business zones by providing access to federal procurement opportunities.

The partnership is expected to enhance KWESST’s presence in the U.S. by addressing logistic challenges, regulatory compliance barriers, and tariffs, thus facilitating smoother market access for its public safety solutions. According to Sean Homuth, President and CEO of KWESST, the move will improve product availability, streamline logistics, and bolster the company’s commitment to providing high-quality solutions to U.S. law enforcement and civilian markets.

Paul Reed, CEO of Nordon Inc., expressed enthusiasm for the partnership, highlighting the state-of-the-art facility’s capability to ensure top-quality and reliable production of KWESST’s products while also supporting domestic job creation and economic growth.

KWESST also reiterated its commitment to maintaining and expanding its primary manufacturing footprint in Canada for products destined for the Canadian market. This strategic expansion into U.S. manufacturing is part of the company’s broader efforts to build on its momentum in both North America and international markets.

The information provided in this article is based on a press release statement from KWESST Micro Systems Inc. Financial metrics reveal the company faces challenges with an EBITDA of -$6.31 million in the last twelve months. Investors seeking deeper insights into KWESST’s financial health and growth prospects can access over 10 additional exclusive ProTips and comprehensive financial metrics through InvestingPro.

In other recent news, KWESST Micro Systems Inc. announced the appointment of Jennifer Welsh as its new Chief Financial Officer and Chief Compliance Officer, effective February 2025. Welsh, who previously served as VP Finance at SNDL Inc., will succeed Kris Denis, the interim CFO since late 2023. Alongside her new role, Welsh resigned from KWESST’s Board of Directors and as Chair of the Audit Committee. Her responsibilities will include overseeing financial and compliance aspects, as well as managing the company’s supply chain and manufacturing operations. Additionally, KWESST appointed James Yersh to its Board of Directors and as Chair of the Audit Committee. Yersh brings over two decades of executive experience, having held CFO positions at BlackBerry and Mitel. David E. Luxton, KWESST’s Chairman, expressed optimism about Yersh’s contributions, especially in enhancing the company’s SaaS offerings. These leadership changes are part of KWESST’s ongoing efforts to strengthen its management team and expand its product lines.

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