KWESST Provides Context on Special Shareholder Meeting Scheduled on March 31 in Connection with a Proposed Share Consolidation

Core Viewpoint - KWESST Micro Systems Inc. is convening a special shareholder meeting on March 31, 2025, to seek approval for a proposed share consolidation aimed at regaining compliance with Nasdaq's Minimum Bid Price Requirement [1][2][5]. Group 1: Shareholder Meeting Details - The special meeting will take place on March 31, 2025, at 4:00 PM Eastern Time, with relevant materials available on SEDAR+ and the company's website [1]. - Shareholders will vote on the "Consolidation Resolution," which proposes consolidating the company's common shares on a basis of one share for every twenty-five shares outstanding [2][5]. Group 2: Background on Share Consolidation - The need for consolidation arises from a notification received on May 16, 2024, indicating non-compliance with Nasdaq Listing Rule 5550(a)(2) due to the company's share price being below US$1.00 for 30 consecutive business days [3]. - Following a previous consolidation on October 23, 2024, the company was granted an additional 180-day period until May 12, 2025, to regain compliance with the Minimum Bid Price Requirement [4]. Group 3: Implications of Non-Approval - If the Consolidation Resolution is not approved, the company risks serious consequences, including potential delisting from Nasdaq if the share price remains below US$1.00 [6]. - The company asserts that the consolidation is in the best interests of shareholders to ensure compliance with Nasdaq's requirements [7].