Canadian non-lethal weapons developer Kwesst Micro Technologies (KWE) has updated terms for its proposed uplisting to Nasdaq and $11M public offering.
Kwest said in a filing that it is now planning to offer 2.3M units, which each unit consisting of one share plus one warrant to buy one share at 125% of the IPO unit price. Units would likely be priced between $4.13 and $6.30, which would raise around $11.4M if priced at the midpoint at $4.95 per unit.
The company also plans to offer buyers whose purchase would amount to them beneficially owning more than 4.99% of the company's common stock an opportunity to buy pre-funded units. Each unit would consist of one pre-funded warrant to buy one share and one warrant to buy one share.
Underwriters would receive a 45-day option to buy up to 349k additional shares, warrants and/or pre-funded warrants to cover over-allotments. Think Equity is serving as lead bookrunner.
In the company's initial filing in August, it said it intended to offer 1.7M units at the assumed price of $6.77 per unit, which would have raised around $11.5M. The company also planned to offer 1.7M pre-funded units.
Kwesst shares are currently traded OTC under the symbol KWEMF and are also listed on the Frankfurt and Toronto stock exchanges. The company hopes to uplist its US shares to Nasdaq under the symbol KWE. Concurrent to the Nasdaq IPO, Kwesst also plans to offer $3M in units on the Canadian market.
Based in Ottawa, Kwesst is a developer and marketer of non-lethal alternatives to firearms for personal safety, law enforcement and military purposes.
Wall Street analysts currently rate Kwesst a strong buy, on average. The company's quant rating, however, is a strong sell.