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- Hostilities abroad, Canadian trucker protests accelerating pace of potential orders.
- Further growth opportunities are available through pending OEM engagements.
- International sales and marketing program launched by company
- Company files FY 2022 Q1 Financials.
Ottawa, Ontario- (Newsfile Corp. – March 1, 2022). KWESST Microsystems Inc. (TSXV, KWE) (OTCQB, KWEMF). “KWESST” (or “the Company”) provided a comprehensive corporate update today on progress and developments. It also included a stronger outlook for Company product in the face of a changing operating climate.
OPerating environment
David Luxton, Executive Chairman at KWESST, stated that there has been a fundamental resetting of the operating environment in the past few weeks. “Hostilities in other countries and the spread of protests by truckers domestically are increasing demand and potential orders for almost all our products and services across three business segments. The Company stated that it expects this resetting to be enduring with long-term benefits and increased demand KWESST’s next-generation tactical system.
Three business segments
For a more detailed version of this graphic, please visit:
https://orders.newsfilecorp.com/files/7366/115210_1d9191cb04d5e81e_002full.jpg
Non-lethal
Law enforcement agencies have noticed a sharp increase in non-lethal equipment demand as a result of events such as the trucker protests. As announced February 22, the Company’s new ARWENTMTo help bring about a peaceful resolution to the trucker protest, anti-riot equipment were used in Ottawa, Canada. The Company is currently processing multiple quote requests for expansion and replenishment anti-riot equipment.
The Company’s new, non-lethal PARA OPSTMFor customer demonstrations and evaluations, the first production samples will be shown off at the 2022 SHOT Show in Las Vegas on January 18-21.
Full production will begin in late summer with the help of third-party contractors who have facilities in the U.S. as well as Canada. KWESST has also initiated an interim self-classification process to speed up the time to market for PARA OPS products and to begin taking orders. This was done in conjunction with a formal classification application to Bureau of Alcohol, Tobacco, Firearms and Explosives. Expert professionals were also available to assist.
Digitization
Several OEMs began discussions with KWESST after the establishment of KWESST’s Center of Excellence for digitization of Soldier Systems. Some of these discussions are in an advanced stage with announcements expected in near future.
These discussions are in addition the previously announced signing of a master professional service agreement with General Dynamics General Dynamics Mission Systems – Canada (“GDMS”) to support development of digitization solutions for future Canadian C4ISR programs. This agreement is part of Canada’s Strong, Secure, Engaged: Canada’s defense policy, which includes government procurements of $3-billion to $5 billion over five years. KWESST, with an initial order valued at $1 million, will assist in the development and testing of a prototype system that connects soldiers with information from different sources in real-time, including the location and enemies of the enemy, and facilitates more effective, coordinated firing.
You can find recent articles in military magazines about the future of soldier digitization, and KWESST’s capabilities here:
https://canadianarmytoday.com/collaborative-app/
https://drive.google.com/file/d/1mKecZ4Omrl1qgjLZJomukBmoP48v6DlE/view?usp=sharing
Counter-Threat
KWESST’s recent major catalyst was the Russian invasion of Ukraine. PhantomTMElectronic decoy with several pending orders and price quotes to fill Urgent Operational Requirements (“UOR”) of NATO forces. The Company believes that it is likely to receive NATO country orders during its 2022 fiscal year.
This is in addition, to the General Dynamics Land Systems (“GDLS”) selection PhantomTMFor a submission of a new vehicle program to the U.S. military, as announced on November 12, 2021. The KWESST engineering team and GDLS will work closely together over the next 15 month to prepare a prototype vehicle with Phantom for trials by its U.S military customer in 2023. The Phantom capability is designed to meet the evolving electromagnetic spectrum operations (EMSO), tactics, techniques, and procedures that will be used by vehicle operators within an RF contested environment.
Depending on the number of Phantom vehicles per vehicle, GDLS could be the successful bidder in the follow-on production program.
Similar interest is being shown in the Company’s Hostilities Battlefield Laser Defense Systems(“BLDS”) that detects lasers, including weapons lasers. The first orders from two NATO countries are pending.
Domestic protests have increased law enforcement requirements for Counter-UAS (“CUAS”) to combat drones being used by protesters. The Company is currently in discussions to adapt its confidential information with industry partners and customers. GhostNetTMsystem to meet domestic public security needs.
Expanded OEM engagement
As KWESST has stated many times, a key part its go-to-market strategy is to partner with major defense contractors as it did with GDMS/GDLS. Similar agreements with other OEMs are in process, which KWESST believes could lead to international expansion. The first announcements of such agreements are expected in our third quarter that begins April 1st, 2022.
International market development
The removal of travel restrictions due to pandemics has allowed the defense industry to resume trade shows. KWESST is now able exhibit and meet customers, OEMs, and international sales representatives. These are the major international events scheduled for 2022. World Defense, Riyadh Saudi Arabia 6-9 March; UK Security & Policing Farnham, UK 15-17 March; SOFICSpecial Operations Expo, Tampa FL 16-19 Mai CANSEC, Ottawa 1-2 June; Eurosatory,Paris 13-17 June AUSAWashington DC, 10-12 Oct; SOFEXAmman, Jordan 31 Oct-31-4 November The Company will also launch an outreach program for its extensive international network of sales reps and agents in March 2022.
Videos on a new website
The Company stated that it plans to launch a new website by mid-March, and has posted some product videos here.
Phantom Tactical Electro-Magnetic Spectrum Operations EMSO
Battlefield Laser Detection Systems
We will continue to add videos so that investors and customers can see what KWESST stands for with its promise of “The Future of Knowledge”Next-Generation Tactical Systems“.
Filing Fiscal 2022 Q1 financials
The Company reported that financial statements for its first quarter ending 31 December 2021, have been filed. They are available at www.sedar.com
PARA OPS
The breakthrough in non-lethal systems is the patent-pending PARA OPS technology. It combines the reliability of an cartridge with a polymer projectile, in a low energy self-stabilizing configuration that improves accuracy. It does not contain any gunpowder, compressed or carbon dioxide. There are many payload options available for projectiles, depending on the mission. These include personal defense, public order, or realistic tactical simulation. A low-cost, dedicated launcher that looks like a firearm, TV remote control, flashlight, or other hybrid design can fire cartridges. Launchers only fire. PARA OPSLive ammunition is not accepted in cartridges. Projectile payloads can include inert colored powder to train, incapacitating pepper powder, and solid slugs to practice or for pain compliance.
About KWESST
KWESST designs and commercializes next-generation tactical systems. These systems meet the needs of security forces and personal defense to overmatch against adversaries. The company’s unique portfolio of proprietary offerings includes its non-lethal Low Energy Cartridge system (LEC), which can be used in all segments of the nonlethal market, as well as law enforcement and personal defense. KWESST is also involved in the digitization tactical forces for shared positional awareness and targeting using its TASCS.TMTactical Awareness and Situational Control System (TASCS) for real-time awareness, targeting information and alerts from any source (including drones), streamed directly to the users’ smart devices or weapons. Counter-measures against threats like drones, lasers, and electronic detection are also available from KWESST. These include the GreyGhostTM, an autonomous soldier-portable microdrone missile system that protects against small hostile drones. It also uses high-speed kinetic impacts to swarms of small drones. A Ground Laser Defence system is used to counter the threat of weaponized lasers being used against personnel and the Phantom.TMAn electronic battlefield decoy system that masks the electromagnetic signatures of friendly forces. It uses decoy signatures at false places to deceive and confuse opponents. These systems can be used as standalone systems or integrated with OEM products and battlefield management software. The Company is headquartered at Ottawa, Canada. There are operations in Stafford (VA) and representative offices in London (UK) and Abu Dhabi (UAE). KWESST trades on TSX Venture Exchange under symbol KWE, and on the U.S. OTCQB with the symbol WWEMF.
Contact Jason Frame, Investor Relations: [email protected]
Visit this site for more information https://kwesst.com/
Cautionary Note regarding Forward-Looking Statements
This news release contains forward-looking statements as required by Canadian securities legislation. They are intended to provide information about management’s current hopes and plans for the future. Forward-looking statements are based on a variety of assumptions and estimates that are considered reasonable. However, they are subject to known and unknow risks, uncertainties, and other factors that could cause actual results or future events to differ materially. These factors include, among others, general business, economic, political, and social uncertainties. These statements are not guaranteed to be accurate as future results and events may differ materially from what was anticipated. Forward-looking statements should not therefore be relied on by readers. KWESST does not intend or have any obligation to revise or update any forward-looking statement, regardless of whether it is due to new information, future events, or any other reason, except as required under law.
Neither TSX Venture Exchange, nor its Regulation Services Provider (as this term is defined by the TSX Venture Exchange policies) accepts responsibility or liability for the accuracy or inadequacy of this news release.
You can view the source version by visiting https://www.newsfilecorp.com/release/115210
