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KWESST Micro Systems Inc. (OTCQB: KWEMF) ("KWESST" or "the Company"), a publicly-traded company listed on the OTCQB© Markets (symbol: KWEMF) and the TSX Venture Exchange (symbol: KWE) today announced that it has engaged Stryk Group USA, ("Stryk Group"), headquartered in Bozeman, Montana, as the Company's strategic partner for commercialization of KWESST's Low Energy Cartridge ("LEC") non-lethal products in the U.S.
"This is a crucial step in our roadmap to bring LEC products to market in the U.S., with an official hard launch at the SHOT Show in Las Vegas, January 18-21, 2022," said David Luxton, Executive Chairman of KWESST. "Like others in the industry, we are well acquainted with the standout capabilities of the team at Stryk Group to build major brands in the shooting and outdoor trade." He added, "From previous work with them in other ventures, they are hands-down the go-to specialists in this field for me. Their marquee client list speaks for itself, and we are very pleased that they share our confidence in the transformative potential of the LEC."
KWESST's proprietary LEC technology solves the twin problems of high-energy "less lethal" cartridge-based munitions that can sometimes be lethal, and the problem of air-powered alternatives that lack the reliability of a cartridge-based system. The LEC is a novel, patent-pending system comprising: a specialized, low-cost firing platform, and a "munition" having a cartridge case with a low-energy "actuator" that propels and stabilizes a polymer projectile. Projectiles can be solid polymer for "pain compliance" or target practice; or a bullet-shaped hollow "plug" containing a bright marking agent for realistic training; or, a high-potency irritant powder for temporary incapacitation for use in self defense, law enforcement or animal control, plus an inert powder variant for practice.
Jeff Edwards, Managing Partner at Stryk Group said, "We are very familiar with David Luxton's track record in developing world-leading non-lethal products. We view this latest invention, the LEC, as a real breakthrough, with the potential to transform all segments of the non-lethal market so that 'everyone goes home alive'. We are excited to be a part of bringing it to market and believe it will have broad application across all segments of the non-lethal user community including personal defense and law enforcement, force-on-force training, and the related market of high-end gaming."
Under the terms of the engagement, Stryk Group will provide KWESST with expert advice on market positioning and branding, and the development of a web site with social media and e-commerce modules. "By the end of this year customers will be able to pre-order the product right from our website, to be created by Stryk Group," said Luxton. The project will also leverage Stryk Group's proprietary data bases and sophisticated digital platforms for highly targeted promotion to qualified audiences at scale, augmented by strategic physical sales channel development, plus order taking and fulfillment across the U.S. "We are confident that by working with Stryk Group this way, including their proven digital strategies, we will accelerate our time to market and the ramp-up of sales," said Luxton.
About the non-lethal market and the Low Energy Cartridge System
The market for non-lethal products is a recurring multi-billion-dollar opportunity. Customers continue to seek better solutions as many legacy systems can be lethal, and frequently are unreliable. Thousands of fatalities have been recorded from existing cartridge-bases systems, including conducted energy devices such as Taser. Other legacy products that are "less" lethal typically fire from air guns, which are inherently unreliable as they are affected by ambient temperature and involve high-maintenance including as a result of air seals and "O" rings drying out and bursting, causing catastrophic failures. Air-based systems also entail a long logistics tail of compressors, air tanks and spare parts.
The LEC systems solves these problems with the proven reliability of a cartridge-based system in a low-cost firing platform that fires only LEC cartridges. The firing platforms are offered in various patterns that replicate the look of a real firearm, or avoid the appearance of a firearm altogether, at the user's choice. The proprietary LEC cartridge automatically stabilizes the projectile for accuracy and distance, with an energetic actuator that controls velocity and muzzle energy well below lethal levels, and with no need for gunpowder or conventional propellant. The system's soft frangible projectiles come with various payloads, including coloured marking agent, inert powder or a safe but powerful irritant powder that temporarily incapacitates subjects.
The Company also announced that it has signed a shares for debt agreement with one of its law firm to settle $18,000 of legal fees through the issuance of 10,000 common shares.
About Stryk Group
Stryk Group USA leverages over 40 years of industry relationships for high-impact consulting to the world's leading hunting, camping fishing and firearms brands. For more information, please visit https://strykgroup.com/.
About KWESST
KWESST develops and commercializes breakthrough next-generation tactical systems that meet the requirements of security forces and personal defense for overmatch capability against adversaries. The company's current portfolio of unique proprietary offerings include its unique non-lethal Low Energy Cartridge (LEC) system with application across all segments of the non-lethal market, including law enforcement and personal defence. KWESST is also involved in the digitization of tactical forces for shared situational awareness and targeting with its signature TASCSTM (Tactical Awareness and Situational Control System) for real-time awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons. Other KWESST products include counter-measures against threats such as drones, lasers and electronic detection. These include the autonomous GreyGhostTM soldier-portable micro drone missile system that defends against small hostile drones including swarms using high-speed kinetic impact; a Ground Laser Defence system to counter the emerging threat of weaponized lasers against personnel and the PhantomTM electronic battlefield decoy system to mask the electromagnetic signature of friendly forces with decoy signatures at false locations to deceive and confuse adversaries. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems. The Company is headquartered in Ottawa, Canada, with representative offices in Washington, DC, London, UK and Abu Dhabi, UAE. KWESST trades on the TSX Venture Exchange under the symbol KWE and on the U.S. OTCQB under the symbol KWEMF.
Contact: Jason Frame, Investor Relations: frame@kwesst.com
For more information, please visit https://kwesst.com/.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation for the purpose of providing information about management's current expectations and plans relating to the future. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. KWESST disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/97799
