Mr. David Luxton reports

KWESST ANNOUNCES CLOSING OF US$5.6 MILLION PRIVATE PLACEMENT IN THE UNITED STATES

Kwesst Micro Systems Inc. has closed its brokered private placement offering to a group of accredited and institutional investors for the issuance and sale of 2,472,742 of the company's common shares (or common share equivalents) for aggregate gross proceeds of $5,588,396.92 (U.S.) (approximately $7.3-million (Canadian)).

As a part of the offering, the company issued 1,542,194 common shares at a price of $2.26 (U.S.) ($2.98 (Canadian)) per common share and 930,548 prefinanced warrants at a price of $2.259 (U.S.) ($2.979 (Canadian)) per prefinanced warrant, with each common share and prefinanced warrant being bundled with one common share purchase warrant of the company. Each prefinanced warrant entitles the holder to acquire one common share at an exercise price of 0.1 U.S. cent per common share, and each common warrant is immediately exercisable and entitles the holder to acquire one common share at an exercise price of $2.66 (U.S.) ($3.50 (Canadian)) per common share for a period of 60 months following the closing of the offering. Although the common shares and prefinanced warrants are each bundled with a common warrant, each security is issued separately.

Kwesst intends to use the aggregate net proceeds from the offering for general working capital purposes.

ThinkEquity acted as sole placement agent for the offering. As compensation for services rendered, the company paid to ThinkEquity a cash fee of $475,013.14, representing 8.5 per cent of the aggregate gross proceeds of the offering, and issued 123,637 warrants to purchase a number of common shares (representing 5 per cent of the common shares and prefinanced warrants sold in the offering). The placement agent warrants will be exercisable, in whole or in part, immediately upon issuance and will expire 60 months after the closing date of the offering at an initial exercise price of $2.66 (U.S.) ($3.50 (Canadian)) per common share.

The offering remains subject to the final approval of the TSX Venture Exchange.

About Kwesst Micro Systems Inc.

Kwesst (Nasdaq: KWE) (Nasdaq: KWESW) (TSX Venture Exchange: KWE) (Frankfurt Stock Exchange: 62U) develops and commercializes breakthrough next-generation tactical systems for military and security forces. The company's current portfolio of offerings includes digitization of tactical forces for real-time shared situational awareness and targeting information from any source (including drones) streamed directly to users' smart devices and weapons. Other Kwesst products include countermeasures against threats such as electronic detection, lasers and drones. These systems can operate stand-alone or integrate seamlessly with original equipment manufacturer products and battlefield management systems, and all come integrated with TAK. The company also has a new proprietary non-lethal product line branded Para Ops with application across all segments of the non-lethal market, including law enforcement. The company is headquartered in Ottawa, Canada, with operations in Stafford, Va., and representative offices in London, United Kingdom, and Abu Dhabi, United Arab Emirates.

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