KWESST Micro Systems Inc. (TSXV:KWE) (TSXV:KWE) (NASDAQ:KWE) (NASDAQ:KWESW) ("KWESST" or "the Company") today updated shareholders on its search for a permanent CFO, the potential increase in scope and value of two of its defense contracts, it's participation at the annual Canadian defence show in Ottawa, and confirmed filing of its financial results for Q2 of Fiscal 2023.
On March 1st, 2023 KWESST announced that it expected to have a permanent CFO in place by April. "The national recruiting firm conducting the search surfaced some excellent candidates, so we extended the process to give due consideration to the top contenders," said David Luxton, Executive Chairman and interim CFO. "We are now concluding on a finalist candidate and expect to announce his appointment before the end of May."
The Company also commented on two of its existing contracts with additional details on the nature, value and scope.
The contract for software systems engineering for the Canadian Department of National Defence ("DND") announced May 2nd, KWESST is a Joint Venture with Thales Canada Inc. and Modis Canada Inc., with a total value to the Joint Venture of $136 million, as announced by DND May 2nd. "This contract is referred to as the 'DSEF' program and was a very strategic win," said Luxton. "We expect it to be the catalyst for a number of other major opportunities in play." KWESST added that it is in kick-off discussions with its partners on the DSEF contract to increase the scope of work it will perform and to make an earlier start, possibly as soon as June with full ramp-up by the Autumn.
On a second contract, KWESST said it is in similar discussions with its NATO customer for the Company's Battlefield Laser Detection System (BLDS) to add to the scope of work and value of the project. "We believe that this order, announced December 12th, 2022, could result in a larger scope of work for the end-user customer, who has expressed interest in the wider capabilities of the BLDS system which would expand the project," said Luxton.
The Company said that, If confirmed, the increases in scope of work and value of both the DSEF and BLDS programs could be material and would favourably impact cash flow.
KWESST also announced today that it will have a prominent participation at CANSEC 2023, May 31st and June 1st, in Ottawa, Canada. CANSEC is Canada's signature annual defence show, and KWESST will be showcasing the latest in its Digitization and Counter-Threat systems and capabilities, plus its line of new Non-Lethal products.
The Company also confirmed that it filed its Q2 financial results for Fiscal 2023 on SEDAR on May 11th, 2023.