Kwesst Micro Systems Inc.
USA: OTCQB: KWEMF | CANADA: TSXV: KWE
Last Price: $1.473 | Website | SEC Filings | Latest News
Before I dive into today’s exciting small-cap alert… let me begin with some very compelling data.
According to the Stockholm International Peace Research Institute (SIPRI) total global military expenditure rose to $1981 billion last year, an increase of 2.6 per cent in real terms from 2019!
In 2020 US military expenditure reached an estimated $778 billion representing an increase of 4.4 per cent over 2019. As the world’s largest military spender, the USA accounted for 39 per cent of total military expenditure in 2020.
U.S. military expenditures are roughly the size of the next seven largest military budgets around the world, combined!
These are staggering figures but also not surprising figures.
Defense is one of the most important expenditures for many countries.
Global defense is a high growth space and the company you are about to read about looks poised to becoming the next huge name in the space!
The stock is currently trading at under $2 and looks to be very under the radar!
|In the last few months, shares have rallied over 240% and at current levels could see short term upside of 41%!|
The company is taking on the global soldiers systems market which is forecast to skyrocket to $14.4B by 2023, by advancing modern networked capability of soldiers and responders as well as keeping frontline personnel on the leading edge of safety and effectiveness.
With innovative technologies, Kwesst Micro Systems Inc. (OTC: KWEMF) could be the BIGGEST discovery made in the high-growth defense arena!
Kwesst Micro Systems, Inc.
With offices in Washington D.C., London, the UK, and Abu Dhabi, Canadian-based KWESST is a proud leader in the development and commercialization of breakthrough next-generation tactical systems that meet the requirements of security forces and personal defense for overmatch capability against adversaries. The company develops and commercializes high-value ultra-miniaturized technology applications for the defense and security industries with a unique technology portfolio that includes its proprietary “MISST” system – “Micro Integrated Systems and Software Technology”.
KWEMF – Bounce Potential Could Be Monumental!
It was only this past September that KWEMF hit a 52-week high of $2.078. There could be major bounce potential now after the profit takers are weeded out!
A gain of 40+% is possible if shares go back to that 52-week high.
PLUS, KWEMF is no stranger to epic rallies.
The stock soared from as low as $0.6039 in June to its 52-week high in September for an amazing run of 244%!
The stock also has an incredible technical setup for a bounce. Take a look at the chart…
(CLICK TO ZOOM)
|As the world continues to learn about this under-the-radar defense play, there could be massive upside ahead!|
KWEMF – Bold Innovations in Tactical Systems for Defense & Security
KWEMF’s mission is to grow in the monstrous sectors found in global defense and security.
It is these sectors where spending is out of this world and could generate tremendous revenues for the company!
Make sure to check out this video to get a better picture of what exactly the company is doing:
Kwesst Micro Systems (KWE.V) keeping our frontline forces safe and effective in the digital age – YouTube
Key market segments and solutions the company is addressing are:
- Breakthrough technology in non-lethal systems with broad application, including law enforcement and personal defense.
- Modernized digitization of tactical forces for shared situational awareness and targeting.
- Counter-measures against threats such as drones, lasers and electronic detection.
Company Highlights Include:
Let’s dive into some of the exciting technology KWEMF has to offer …
KWEMF – LEC is a Universal System for All Kinds of Non-lethal Applications
KWEMF’s proprietary LEC technology solves the twin problems of high-energy “less lethal” cartridge-based munitions that can sometimes be lethal, and the problem of air-powered alternatives that lack the reliability of a cartridge-based system.
The LEC is a novel, patent-pending system comprising: a specialized, low-cost firing platform, and a “munition” having a cartridge case with a low-energy “actuator” that propels and stabilizes a polymer projectile.
Projectiles can be solid polymer for “pain compliance” or target practice; or a bullet-shaped hollow “plug” containing a bright marking agent for realistic training; or, a high-potency irritant powder for temporary incapacitation for use in self defense, law enforcement or animal control, plus an inert powder variant for practice.
The Low Energy Cartridge (LEC) System
The LEC is a universal system for all kinds of “non-lethal” applications:
There is no question that law enforcement around the country needs better tactical strategies to stop unnecessary fatalities..
“The kind of fatalities that have led to widespread protests in the U.S. are just one example of the need for more advanced solutions that enable law enforcement to engage with more benign devices from a safer stand-off distance and ensure that everyone goes home alive.”
– KWESST Micro Systems Executive Chairman David Luxton.
LEC Technology is a proprietary non-lethal cartridge-based ordnance system that was developed by Mr. Luxton and could be EXACTLY what law enforcement needs going forward!
It was in January of 2021 that KWESST Micro Systems entered into a technology purchase agreement with DEFSEC Corporation to acquire this proprietary non-lethal munition technology.
DEFSEC is an Ottawa-based based private company that is owned Mr. Luxton, who has a track record in developing world-leading non-lethal products.
Competing products such as traditional air-powered systems for public order, personal protection and gaming have limitations which the LEC Technology does not!
Systems utilizing compressed gas, cannot typically be stored with gas in the system as the afore mentioned seals and “O” rings will allow the gas to escape over time, potentially rendering the device unusable when needed the most.
Other alternatives, such as Taser, carried by some 400,000 American patrol officers, can also be unreliable in certain situations. The LAPD has said tasers have an effectiveness rating of only 57.1%!
Check out the first public video demonstrating the Company’s non-lethal Low Energy Cartridge (LEC) product in action here: https://www.youtube.com/watch?v=a22sm6OE5c4
KWEMF – Engages Stryk Group USA for Commercialization of “LEC”
It was only last month that KWEMF has engaged Stryk Group USA as the company’s strategic partner for commercialization of its’ Low Energy Cartridge (“LEC”) non-lethal products in the U.S.!
|“This is a crucial step in our roadmap to bring LEC products to market in the U.S., with an official hard launch at the SHOT Show in Las Vegas, January 18-21, 2022,” said David Luxton, Executive Chairman of KWESST.|
“Like others in the industry, we are well acquainted with the standout capabilities of the team at Stryk Group to build major brands in the shooting and outdoor trade.” He added, “From previous work with them in other ventures, they are hands-down the go-to specialists in this field for me. Their marquee client list speaks for itself, and we are very pleased that they share our confidence in the transformative potential of the LEC.”
That’s right.. these innovative products are heading to the SHOT show in the next few months where they could gain a lot of exposure!
Under the terms of the engagement, Stryk Group will provide KWEMF with expert advice on market positioning and branding, and the development of a web site with social media and e-commerce modules.
“By the end of this year customers will be able to pre-order the product right from our website, to be created by Stryk Group,” said Luxton.
The project will also leverage Stryk Group’s proprietary data bases and sophisticated digital platforms for highly targeted promotion to qualified audiences at scale, augmented by strategic physical sales channel development, plus order taking and fulfillment across the U.S.
“We are confident that by working with Stryk Group this way, including their proven digital strategies, we will accelerate our time to market and the ramp-up of sales,” added Luxton.
KWEMF – TASCS is Another Game Changing Technology that Could Save Lives
Based on KWEMF’s proprietary MISST Technology, the company’s signature TASCS (Tactical Awareness and Situational Control System) product gives real-time awareness and targeting information from any source (including drones) streamed directly to users’ smart devices and weapons.
The Tactical Awareness and Situational Control System is an app and snap-on weapon adaptor that enables real-time streaming of situational awareness data of any kind from any source, including drones, direct to users’ smart display devices and weapons systems, for a common operating picture and networked targeting of adversaries.
Global go to market strategy:
- Direct engagement and evaluation contracts with opinion-making end-users.
- Teaming / partnering agreements with prime defense contractors and OEM suppliers for U.S. military, including ManTech, AeroVironment and Samsung.
- International distribution through established agents and representatives
- Multi-billion global market for application of TASCS to installed base of candidate weapons systems.
- Obtainable market $400M just for application of TASCS on mortar systems alone.
|In fact, the company recently delivered on a $1.1 MIL Dollar defense contract for this TASCS system with a key US Military client!!|
Getting a U.S. military client is nothing short of impressive for an early-stage company, considering that any U.S. military contract is pretty much gold when it comes to defense.
TASCS can integrate with drones to provide a feed to ground forces and their weapons systems including sniper rifles, mortars, grenade launchers, mounted machine guns, and vehicle mounted weaponry.
THINK OF THE MILITARY ADVANTAGE THIS WOULD GIVE GROUND TROOPS!
In March 2021, KWEMF announced the successful integration of TASCS IFM into the Android Tactical Assault Kit (ATAK), the preeminent battlefield management system used by more than a dozen U.S. government agencies and many NATO allies and partner nations.
Android Team Awareness Kit (ATAK) integration services
The Company reported that its pipeline of sales opportunities for ATAK integration services stands at more than $40M and growing!
|“These opportunities are with major end-users in NATO countries and with Tier 1 and Tier 2 global defense contractors,” said KWEMF CEO Jeff MacLeod. “We expect these to result in initial contracts and teaming agreements starting in Q1 of Fiscal 2022, with more to follow through 2022 and extending to 2023, 2024 and beyond.”|
KWEMF also reported that it is progressing on schedule and to budget in the delivery of its $1.1M contract for TASCS (Tactical Awareness Situational Control System) IFM (Integrated Fires Module) systems for the 81mm mortar to a key U.S. military customer.
The successful integration has opened the doors to many military customers around the world, including NATO allies!
KWEMF – Other Promising Tech and Products that Could Get the Company Noticed
A drone whose principal function and operation is acting as a projectile to intercept aerial threats using ultra-high speed kinetic (i.e. motion-related) impact force.
KWEMF’s GreyGhost™ addresses a concern for deployed military and many security agencies arising from the proliferation of small drones and the potential hazards they pose to troops, sensitive infrastructure and the public at large.
KWEMF’s licensed micro-drone missile technology provides a range in excess of 3 KM, locks on to a target, and once in attack mode, it will track and repeatedly impact the target drone until it is destroyed!
Multiple GreyGhost™ missiles can also be launched concurrently to deal with multiple targets simultaneously.
The Company reported that GreyGhost™ is among a small handful of counter-measures against small drones recently down-selected by the U.S. military joint program for further evaluation.
In KWEMF’s most recent corporate update, the company said that they are working with US Department of Defense and another NATO country on upgraded capability of the GreyGhost counter-drone system to deal with next-generation drone threats and has commenced engagement with major defense contractors on potential partnerships.
Phantom™ is a compact, lightweight and selectively electromagnetic transmitter capable of mimicking the electromagnetic footprint of a tactical military units.
The purpose of this electronic battlefield decoy system is to mask the electromagnetic signature of friendly forces with decoy signatures at false locations to deceive and confuse adversaries.
🔸 Spoofs adversaries to draw them out, slow their targeting of friendly forces, and commit and waste assets on phantom targets
🔸 Authentic emulation of voice, video, data and text signatures of NATO forces.
🔸 Addresses next-generation NATO requirements.
🔸 Simultaneous waveform generation across all communications systems
Recent interest from NATO agencies and defense contractors for this product has resulted in KWEMF moving up the production of demonstration samples of Phantom™ in the Company’s priorities.
The company was also awarded a Patent for the Phantom™ and recently concluded a successful demonstration to the U.S. Special Operations Command!
KWEMF is currently producing upgraded units to be used as demonstration samples in response to other U.S. Department of Defense requests for trials and potential initial procurement before the end of calendar 2021.
Ground Laser Defense
A Ground Laser Defense system used to counter the emerging threat of weaponized lasers against military personnel.
According to KWEMF, this unique product has no known equivalent and comes in 3 versions:
🔸 Personal alert version: Warns of laser presence
🔸 Dismounted squad version: Warns, and locates laser source
🔸 Vehicle mounted version: 360˚ detection and locates laser source
KWEMF – Defense Spending is Astronomical!
The defense industry is one of the evergreen sectors to look at, owning to the evolving warfare techniques, increasing demand amid a rapidly changing world order and geopolitical tensions.
Did you know that defense companies get the bulk of their revenue from one customer: the U.S. government? It is a good thing that the U.S. has deep pockets and a 245-year history of paying its bills.
If there is one thing the United States is not cheap about, it is their defense spending. The Pentagon has an insatiable appetite for new equipment. The international market is also tremendous.
KWEMF – Recent Developments…
The following developments are in KWEMF’s latest corporate update found HERE:
Innovation Solutions Canada (“ISC”)
As announced on August 5th, the company received notification from ISC that it has qualified for up to $1.5M in non-dilutive funding to advance its counter-UAS technology, its PhantomTM electronic decoy and its Tactical Awareness and Situational Control System (TASCS) Indirect Fire Module (IFM) system currently under contract with a key U.S. military customer.
“The last phase of our current TASCS IFM contract for this U.S. military customer is scheduled for completion this October,” said MacLeod, who added, “We are currently in discussions with this customer regarding next phases of procurement. We are also submitting proposals to other NATO customers with similar requirements.” THAT IS THIS MONTH!
PhantomTM electronic decoy
The Company remarked that it is seeing accelerated interest in its PhantomTM electronic decoy following a successful demonstration to U.S. Special Operations Command (USSOCOM) in June of this year and is currently producing upgraded units to be used as demonstration samples in response to other U.S. Department of Defense (“DoD”) requests for trials and potential initial procurement before the end of calendar 2021. As well, the Company continues to develop ever-stronger IP around this technology and recently received yet another U.S. patent, this one covering methods of employment in addition to previous patents covering the technology itself.
GreyGhost ® counter-drone
The company is also working with DoD and another NATO country on upgraded capability for the GreyGhost ® counter-drone system to deal with next-generation drone threats and has commenced engagement with major defense contractors on potential partnerships.
“It is a key part of our go-to-market plan to partner with global defense prime and major sub-contractors,” said CEO Jeff MacLeod, “We announced a handful of such partnerships early on. The past few months have been especially active in progressing discussions with several others on all fronts, which is expected to result in announcements in the coming weeks and months.”
Attendance at trade shows
The international defense market has seen relaxed COVID-19 restrictions with the re-opening of major trade shows and events. “We attended IDEX, the premier Middle East event in Abu Dhabi this past February and announced the appointment of Bin Hilal Enterprises, LLC as our representative in the key Middle East market of the United Arab Emirates,” stated MacLeod.
The company was also expected to show at the reopening of DSEI, the major European defense show in London, UK, in September, as well as the Modern-Day Marine show, also in September, and AUSA, the major annual U.S. Army event in Washington DC in October.
THE BOTTOM LINE
Bank of America analyst Ronald Epstein projects that the U.S. defense budget will continue to grow by 0.5% annually through 2025, creating earnings tailwinds for top defense stocks.
With all of the game changing tech and products that KWEMF has under its belt, there is no denying that this company could have a very bright future ahead.
With many defense stocks trading at over $100, KWEMF at these levels could be a true hidden gem.
Especially with revenues exploding and the world’s largest defense spender already knocking at the company’s door!
KWEMF IS FIRING ON ALL CYLINDERS TO BECOMING A BIG NAME IN THE DEFENSE ARENA AND COULD BE GEARING UP FOR AN EPIC BOUNCE!