KWESST Micro Systems (“KWESST” or the “Company”) has announced its plan to consolidate its issued and outstanding common shares (each, a “Share”) on a 21:1 basis , subject to final approval from the TSX Venture Exchange (the “TSXV”) 9. The consolidation is designed to ensure continued compliance with Nasdaq’s minimum bid price requirements, ultimately benefiting shareholders by enhancing the Company’s market standing.
The consolidation became effective at 12:01 a.m. Eastern Daylight Time (EDT) on April 23, 2025 , for trading on the Nasdaq Capital Market, while it will take effect on the TSXV at 12:01 a.m. EDT on April 24, 2025. Due to discrepancies in the effective dates on both markets, trading in KWESST securities was temporarily halted on April 23, 2025 , and resumed on a consolidated basis across both exchanges at market open on April 24, 2025 .
The post-consolidation Shares have been assigned new identification numbers:
- CUSIP Number : 501506802
- ISIN Number : CA5015068029
These changes reflect the updated structure of the Company’s equity following the consolidation.
Impact on Share Purchase Warrants
The consolidation does not affect the number of issued and outstanding share purchase warrants of the Company, which trade under the symbols “KWE.WT.U” on the TSXV and “KWESW” on Nasdaq. However, the terms of these Listed Warrants will be adjusted accordingly:
- Exercise Ratio : After the consolidation, 210 Listed Warrants will be required to purchase one (1) post-consolidation Share.
- Exercise Price : The exercise price per Share will increase to US$1,050.00 .
These adjustments align with the terms of the indenture and warrant agent agreements governing the Listed Warrants. Importantly, no fractional Shares will be issued upon the exercise of any Listed Warrants. The Listed Warrants will continue to trade under their existing CUSIP numbers on both exchanges.
Why KWESST Chose Share Consolidation
KWESST believes that the consolidation is in the best interests of its shareholders. By reducing the number of outstanding shares and increasing the per-share price, the Company aims to meet Nasdaq’s minimum bid price requirements , ensuring its continued listing on the exchange. This strategic move is expected to enhance shareholder value by improving the Company’s compliance and market visibility.
Trading Halt and Resumption Details
To address the discrepancy in the effective dates of the consolidation on the Nasdaq and TSXV, trading in KWESST securities was halted on April 23, 2025 . Trading resumed on a consolidated basis across both exchanges at market open on April 24, 2025 . This temporary halt ensures a smooth transition and avoids potential confusion during the consolidation process.
Key Takeaways
- KWESST implemented a 21:1 share consolidation effective April 24, 2025 , on the TSXV and Nasdaq.
- The consolidation aims to ensure compliance with Nasdaq’s minimum bid price requirements and enhance shareholder value.
- Listed Warrants remain unaffected in quantity but will require 210 warrants to purchase one post-consolidation Share at an increased price of US$1,050.00 .
- Trading in KWESST securities was temporarily halted on April 23, 2025 , and resumed on April 24, 2025 , on a consolidated basis.
For more information about KWESST Micro Systems and its initiatives, visit the Company’s official website or consult regulatory filings on the TSXV and Nasdaq.
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