KWESST Gains Time: NASDAQ Extends Minimum Bid Price Requirement

KWESST Micro Systems Inc. (NASDAQ: KWE) has received a lifeline from Nasdaq, as the exchange granted the company an additional 180-day period to comply with the minimum bid price requirement. This extension, until May 12, 2025, follows KWESST's initial non-compliance notification on May 16, 2024, after failing to maintain the required bid price for 30 consecutive trading days. Despite efforts, KWESST did not regain compliance by the November 12, 2024, deadline, prompting the company to request the extension.

Nasdaq's decision was informed by KWESST's compliance with other listing requirements, except for the bid price. The company has indicated its intent to address this deficiency, potentially through a reverse share split. For KWESST to regain compliance during this new period, its common shares must close at or above $1 for at least ten consecutive trading days. Nasdaq may also impose further requirements for continued compliance, typically no longer than 20 consecutive business days. Importantly, this announcement will not affect the listing or trading of KWESST's shares, which will remain active on both the Nasdaq Capital Market and the TSX Venture Exchange.

Headquartered in Ottawa, Canada, KWESST develops advanced tactical systems for military and security applications, including technologies for real-time situational awareness and countermeasures against emerging threats. The company is actively working on broadening its offerings, including a proprietary line of non-lethal products. As KWESST moves forward, it is closely monitoring its share price and exploring strategic options to ensure compliance with Nasdaq's listing standards.

The extension granted to KWESST provides the company with additional time to address its bid price deficiency and regain compliance with Nasdaq's listing standards. A reverse share split is one potential strategy the company could employ to boost its share price. However, investors should be aware that such a move may lead to increased volatility and may not be well-received by all investors.



In addition to a potential reverse share split, KWESST could explore alternative strategies to boost its share price and regain compliance. These could include strategic acquisitions or partnerships, operational efficiency improvements, or a share buyback program. By exploring these options, KWESST can work towards regaining compliance with Nasdaq's listing standards while also creating long-term value for shareholders.

As KWESST continues to develop its tactical systems and non-lethal products, it may attract more investors, potentially boosting its share price. Moreover, these developments could demonstrate the company's ability to maintain long-term compliance with Nasdaq's listing standards.