DEFSEC Technologies closes CDN$5.54M private placement

DEFSEC Technologies Inc. (TSXV: DFSC) (NASDAQ: DFSC) has closed a private placement, raising approximately CDN$5.54 million (US$4.0 million) in gross proceeds before placement agent fees and other expenses, according to a company statement.

The offering involved the issuance of 1,951,219 common shares at CDN$2.84 (US$2.05) per share, along with common share purchase warrants to acquire up to 1,951,219 additional shares. Each warrant is exercisable at CDN$3.30 per share for 60 months following the closing.

H.C. Wainwright & Co. acted as exclusive placement agent for the offering, receiving a cash fee equal to 7.5% of gross proceeds. The placement agent also received warrants to purchase common shares equal to 7.5% of the shares and pre-funded warrants sold, exercisable at CDN$3.55 per share for 60 months.

DEFSEC said it intends to use the net proceeds for business and market development, intellectual property protection and registrations, and general working capital.

The securities were not registered under the U.S. Securities Act of 1933. The company said it has agreed to file one or more registration statements with the Securities and Exchange Commission covering the resale of the unregistered securities issued in the offering.

DEFSEC is headquartered in Ottawa, Canada, and develops tactical systems for military and security forces.

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