ottawa

Kwesst Micro Systems Inc. has extended until Dec. 15, 2020, its option to acquire a proprietary non-lethal munitions technology system referred to as the low-energy cartridge (LEC).

The owner of the LEC technology is DEFSEC Corporation, an Ottawa-based based private company owned by David Luxton, the Executive Chairman of KWESST. KWESST entered into a letter of intent with DEFSEC on June 6, 2020 to acquire the LEC technology, and is currently conducting due diligence on the technology and its market potential.

The LEC is a proprietary non-lethal cartridge-based ordnance system with wide application in the rapidly growing market of soldier and law enforcement training, maintenance of public order, and personal defence. “The market has long required a safer, lower-cost reliable alternative to existing solutions,” said Jeff MacLeod, KWESST Founder and CEO. “We see the LEC as a strong fit with KWESST’s other smart ordnance technologies, like our Shot Counter system. Together, the LEC and Shot Counter have the potential to anchor the build-out of a significant business unit specialized in smart ordnance systems, with a vast global market.”

The contemplated transaction would benefit from the deep combined experience of Jeff MacLeod and David Luxton in the specialty ordnance business. Mr. MacLeod is a highly knowledgeable defence industry executive with over 20 years’ experience in the field of small arms and advanced soldier systems. Prior to establishing KWESST, he was the General Manager of Colt Canada, the primary supplier of small arms to the Canadian military. David Luxton was the founder in 1990 of Simunition Inc., a business that develops and sells simulated munitions for realistic close quarters combat training for military and law enforcement around the world. He sold the business to a large military contractor and from 2015-2018 was the Executive Chairman of United Tactical Systems LLC, a U.S. company that develops and sells products for the global less-lethal market.

The terms and conditions of the letter of intent between DEFSEC and KWESST are detailed on pages 16 and 17 of the Company’s Filing Statement dated September 28, 2020 which can be found at www.sedar.com. The acquisition of the LEC technology by KWESST remains subject to the approval of the TSX Venture Exchange.