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Canadian weapons maker Kwesst uplists to Nasdaq, raises $13M in two offerings

Canadian weapons developer Kwesst Micro Technologies (KWE) (OTCQB:KWEMF) (TSXV:KWE:CA) stock fell 36% Wednesday after it uplisted its shares to Nasdaq and raised an aggregate of $13M from simultaneous US and Canadian offerings.

Shares of Kwesst opened at $2.90, reaching a session high of $3.25 in early trading before slipping to a low of $2.63 mid-morning. The stock closed at $3.17, down 36% from Tuesday's close of $4.95 on the OTC market.

Kwesst shares were uplisted from the OTC market to Nasdaq under the symbol KWE. The stock is also listed in Canada on the TSX Venture Exchange under the symbol KWE.

For its US offering, Kwesst offered 2.5M units priced at $4.13 apiece, raising around $10M. Each unit consisted of one share plus one warrant to buy one share at the exercise price of $5.

Underwriters were granted a 45-day option to buy up to 375K additional shares and/ or warrants. Think Equity is serving as lead bookrunner.

For the Canadian offering, Kwesst offered 726K units with the same terms and pricing as the US offering, raising around $3M. PI Financial served as bookrunner for the Canadian deal.

The shares priced at the bottom-end of a range Kwesst cited in a filing made in late October. In that filing, Kwesst said it was looking to offer 2.3M units priced between $4.13 to $6.30, which would have raised around $11M if priced at the midpoint. Kwesst added that it was looking to offer around $3M in shares through a concurrent Canadian offering.

Based in Ottawa, Kwesst is a developer and marketer of non-lethal alternatives to firearms for personal safety, law enforcement and military purposes.

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