December 16th, 2021 – KWESST Micro Systems Inc. (TSXV : KWE and OTCQB: KWEMF) (“KWESST” or the “Company”) is pleased to announce that it has completed the acquisition of Police Ordnance Company Inc. (“POC”) and its ARWEN less-lethal product line (the “Acquisition”).
Located in Bowmanville, Ontario, with ancillary operations in Florida, POC owns all of the patents and trademarks to the ARWEN product line of less-lethal launchers, and a proprietary line of 37 mm less-lethal cartridges designed for riot control and tactical teams. The company has law enforcement customers across Canada, the U.S. and abroad.
“ARWEN is a highly respected brand in the industry, with under-exploited potential for global expansion under KWESST ownership,” said Jeff MacLeod, Founder, President and CEO of KWESST. “We look forward to expanding sales and customer supporter. Greg Sullivan and Glen Turpin, current executives at ARWEN are staying with the company to lead the expansion of that part of KWESST’s business.”
Terms of the transaction
In consideration for the Acquisition, KWESST issued to the vendors 277,576 common shares (the “Shares”), for an aggregate purchase price of $458,000, along with the issuance of 200,000 common share purchase of warrants of KWESST (“Warrants”) to the shareholders of POC. Each Warrant shall entitle the holders to acquire one common share of KWESST (the “Warrant Shares”) for a period of 36 months at an exercise price of $1.72 per common share.
Upon fulfilment of certain financial milestones, KWESST may issue an additional 62,500 common shares for maximum additional consideration of $100,000. All of the Shares, Warrants and Warrant Shares, if issued, are subject to a four-month hold period from their date of issuance.
About ARWEN and POC
ARWEN is an acronym for “Anti Riot Weapon ENfield” and was originally developed by Royal Ordnance in the U.K before being eventually acquired by POC. ARWEN products are used by law enforcement across North America and internationally.
ARWEN is a 37mm less lethal system which is based off two firing platforms, a multi-shot launcher and a single shot launcher, both with multiple versions. ARWEN’s full line of munitions cover the range from impact to chemical rounds and has proven highly effective in any dynamic situation to bring a safe conclusion to a potentially violent incident.
To learn more about Arwen, please watch this short video: https://vimeo.com/537635456
KWESST develops and commercializes breakthrough next-generation tactical systems that meet the requirements of security forces and personal defense for overmatch capability against adversaries. The company’s current portfolio of unique proprietary offerings include its unique non-lethal Low Energy Cartridge (LEC) system with application across all segments of the non-lethal market, including law enforcement and personal defence. KWESST is also involved in the digitization of tactical forces for shared situational awareness and targeting with its signature TASCSTM (Tactical Awareness and Situational Control System) for real-time awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons. Other KWESST products include counter-measures against threats such as drones, lasers and electronic detection. These include the autonomous GreyGhostTM soldier-portable micro drone missile system that defends against small hostile drones including swarms using high-speed kinetic impact; a Ground Laser Defence system to counter the emerging threat of weaponized lasers against personnel and the PhantomTM electronic battlefield decoy system to mask the electromagnetic signature of friendly forces with decoy signatures at false locations to deceive and confuse adversaries. These systems can operate stand-alone or integrate seamlessly with OEM products and battlefield management systems. The Company is headquartered in Ottawa, Canada, with representative offices in Washington, DC, London, UK and Abu Dhabi, UAE. KWESST trades on the TSX Venture Exchange under the symbol KWE and on the U.S. OTCQB under the symbol KWEMF.