DEFSEC Technologies Announces Closing of CAD$2.1 Million Registered Direct Offering

Executive Summary

• DEFSEC Technologies Inc. closed a registered direct offering of 566,040 common shares at CAD $3.64 per share, generating approximately CAD $2.1 million in gross proceeds.
• Concurrently, the company issued unregistered warrants for up to 566,040 common shares with an exercise price of CAD $4.27, immediately exercisable and expiring five years from issuance.
• Net proceeds are earmarked for working capital and general corporate purposes; placement agent fees of CAD $154,529 were paid, and the agent received 42,453 additional warrants at an exercise price of CAD $4.55.

Key Details

• Offering Size: 566,040 common shares sold in a registered direct offering.
• Purchase Price per Share: CAD $3.64 (US $2.65).
• Gross Proceeds: Approximately CAD $2.1 million before fees and expenses.
• Placement Agent: H.C. Wainwright & Co., acting as exclusive placement agent.
• Warrant Issuance (Private Placement): Up to 566,040 common shares; exercise price CAD $4.27 per share; immediately exercisable; five‑year term.
• Additional Warrants to Agent: 42,453 warrants issued to the placement agent (or designees) at an exercise price of CAD $4.55 per share, also with a five‑year term.
• Placement Agent Fee: Cash fee of CAD $154,529 paid to H.C. Wainwright & Co.
• Use of Proceeds: Working capital and general corporate purposes.
• Regulatory Filings: Offering made under shelf registration statement on Form F‑3 (File No. 333‑277196) declared effective March 4 2024; prospectus supplement filed with the SEC.
• Private Placement Exemption: Warrants offered pursuant to Section 4(a)(2) of the Securities Act and Regulation D; not registered in the U.S., subject to resale restrictions.
• TSX Venture Exchange Approval: Offering remains subject to final TSX‑V approval.

Notable Quotes

• Sean Homuth, President and CEO: “The capital raised will strengthen our balance sheet and support ongoing development of next‑generation tactical systems.” (quoted in the original release)