Provides business update
KWESST Micro Systems Inc. (TSXV: KWE) (OTCQB: KWEMF) ("KWESST" or "the Company") announces the results of its 2021 Annual and Special Meeting of shareholders held on Wednesday, March 31, 2021 in virtual format.
Shareholders approved all the resolutions detailed in the management information circular of the Company dated February 11, 2021, namely:
- Electing all the nominees to the Board of Directors of the Company;
- Appointing KPMG LLP as auditor of the Company for the ensuing year and authorizing the directors to determine the auditor's compensation; and,
- Approving the Company's long term incentive plan.
The Company also provided the following general business update to investors.
Current contract with U.S. military for TASCS IFM product
The Company reported that it is progressing on schedule and to budget in the delivery of its $1.1M contract for TASCS (Tactical Awareness Situational Control System) IFM (Integrated Fires Module) systems for the 81mm mortar to a key U.S. military customer.
In March 2021, KWESST announced the successful integration of TASCS IFM into the Android Tactical Assault Kit (ATAK), the pre-eminent battlefield management system used by more than a dozen U.S. government agencies and many NATO allies and partner nations.
This integration opens the door to further deployment of the Company's systems to military customers. The Company will now proceed to the next phase of the contract, involving live-fire trials at various U.S. military bases with full delivery of the contract expected in the current fiscal year.
Progress on other product introduction to the marketplace
GreyGhostTM is a drone whose principal function and operation is acting as a projectile to intercept aerial threats using kinetic (i.e. motion-related) force. GreyGhostTM addresses a concern for deployed military and many security agencies arising from the proliferation of small drones and the potential hazards they pose to troops, sensitive infrastructure and the public at large.
Current methods to tackle this concern include electronic counter-measures which attempt to disrupt communication protocols. Other systems, such as net capture, have a short range and can only deal with one target at a time. The Company's licensed micro-drone missile technology provides a kinetic interceptor to engage drones threats. With a range in excess of three kilometers, the Company's GreyGhostTM locks on to a target. Once in attack mode, it will track and repeatedly impact the target drone until it is destroyed. Multiple GreyGhostTM missiles can be launched concurrently to deal with multiple targets simultaneously.
The Company reported that GreyGhostTM is among a small handful of counter-measures against small drones recently down-selected by the U.S. military joint program for further evaluation.
PhantomTM is a compact, lightweight and selectively electromagnetic transmitter capable of mimicking the electromagnetic footprint of a tactical military units. Recent interest from NATO agencies and defence contractors for this product has resulted in KWESST moving up the production of demonstration samples of PhantomTM in the Company's priorities.
Non-Lethal Low Energy Cartridge (LEC) System
KWESST management reminded shareholder that the acquisition of the Non-Lethal Low Energy Cartridge (LEC) System is expected to close shortly and KWESST has begun plans to implement rapid productization. For further details on the proposed acquisition, please refer to the Company's January 18, 2021 and March 23, 2021 news releases.
The LEC system is a proprietary non-lethal cartridge-based ordnance system developed by David Luxton the Executive Chairman of KWESST. The LEC system is a novel proprietary combination of cartridges that fire from a dedicated firing device, with a range of projectile payloads specific to the intended application. The LEC system comprises three main aspects: (i) a dedicated firing platform in a non-standard calibre to ensure "live fire exclusion" for safety; (ii) a non-lethal low energy cartridge case and actuator; and (iii) a non-lethal polymer projectile with various payloads depending on the intended application (public order, training, personal defence or high-action gaming). The calibration of energy dynamics between the firing platform, the energy in the cartridge and the velocity of the projectile combine to ensure reliable functioning of the firing platform and terminal effects that are non-lethal. There are two versions of the LEC cartridge: (i) one for non-reciprocating firing platforms that look like revolvers and shotguns; and (ii) one for reciprocating firing platforms that look like automatic pistols, sub-machine guns and assault rifles.
Active contract pursuits and government funding proposals
The Company reported increased activity in contract proposals and government funding applications. "While we are not able to control the certainty or timing of contracts and funding, we are hopeful that a good portion of our recent efforts will mature in our current fiscal year," said Jeff MacLeod, KWESST Founder, President and CEO.
Incremental near-term revenue from ATAK Centre of Excellence
"As announced on March 30, we also expect an incremental revenue contribution starting in this fiscal year from our ATAK Centre of Excellence," said MacLeod. "Some of this work has already begun and we are ramping up to service more government agencies and defence companies who have approached us to develop and support their ATAK applications."
Industrial Tax Benefits (ITB) credit (typically known outside Canada as "Offsets")
In a new development, the Company reported that it has begun discussions with a major foreign defence contractor for near-term and potential future defence program work under which the contractor could receive favorable ITB credits for inclusion of KWESST in its supply chain. This has the potential to accelerate and expand the Company's stated go-to-market strategy of partnering with large defence contractors.
KWESST develops and commercializes high-value ultra-miniaturized technology applications that make a critical difference to the safety and operational effectiveness of personnel in the defence and security industries. The company's current portfolio of unique proprietary offerings include: 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; 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 PhantomTMelectronic battlefield decoy system to mask the electromagnetic signature of friendly forces with decoy signatures at false locations to deceive and confuse adversaries. All systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems including Frontline, Edge, Killswitch and ATAK (Android Tactical Assault Kit) among others. KWESST also has developmental "smart ordnance" projects including its "Shot Counter" system, which records the number and type of rounds fired, for optimized firearms maintenance and performance. 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: firstname.lastname@example.org
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. Forward-looking statements include, but are not limited to, statements with respect to the timing for the commencement of trading and the plans and operations of KWESST after giving effect to the Qualifying Transaction. 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/79169