OTTAWA – KWESST Micro Systems Inc. (NASDAQ: KWE), a developer of tactical systems for military and security forces, has signed a Letter of Intent (LOI) with O'Dell (NYSE:DELL) Engineering Ltd. for the distribution of its PARA OPS products in the Canadian civilian market. The companies aim to finalize a definitive agreement by March 31, 2024.
O'Dell Engineering, a distributor of firearms and related equipment in Canada, sees potential for PARA OPS in both consumer and law enforcement sectors. The technology is considered a safe alternative to products like pepper spray and starter pistols, which have regulatory challenges in Canada.
The LOI involves an initial small stocking order from O'Dell post the completion of the definitive agreement. Additionally, O'Dell will consolidate orders and handle shipping of KWESST's ARWEN product line, which serves law enforcement customers in Canada. O'Dell will receive a 20% discount on the Manufacturer's Suggested Retail Price (MSRP) for products sold to its customers and a 5% fee on the invoice value for items shipped to KWESST's existing customers, with actual shipping costs billed at cost.
KWESST's President and CEO Sean Homuth expressed enthusiasm for bringing their solutions to the Canadian market, highlighting the potential benefits of O'Dell's distribution network and expertise. The company also anticipates similar distribution arrangements in the United States.
KWESST's product offerings include systems for real-time situational awareness, countermeasures against electronic detection, lasers, drones, and the non-lethal PARA OPS line. The company is headquartered in Ottawa, Canada, with operations in Ontario, North Carolina, and representative offices in the UK and UAE.
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