#Canada #Ottawa #DEFSEC Technologies #NASDAQ DFSC #TSXV DFSC

DEFSEC Technologies Inc. Plans Share Consolidation

In a recent announcement, DEFSEC Technologies Inc. revealed its strategy to consolidate common shares on a 9-to-1 basis, which is set to become effective at 12:01 a.m. Eastern Daylight Time on November 16, 2026. This decision aims to ensure compliance with the Nasdaq’s minimum bid price requirements, a crucial step for maintaining the company’s standing in the competitive technology sector.

Background of the Consolidation

The consolidation will reduce the existing 4,593,998 common shares to approximately 510,444, assuming no other changes occur. The process was approved by DEFSEC's board of directors on November 4, 2026, and is now awaiting final approval from both the TSX Venture Exchange and Nasdaq. This move not only simplifies the share structure but also positions the company for future growth and investment.

Impact on Shareholders

For registered shareholders, the transition will be straightforward. Those holding shares in a book-entry or direct registration system will see their pre-consolidation shares automatically converted into post-consolidation equivalents without needing additional action. In contrast, shareholders with physical share certificates will need to send these, alongside a completed letter of transmittal, to the Company’s transfer agent, TSX Trust.

Furthermore, any fractional shares resulting from the consolidation will be rounded down, ensuring that no fractional common shares remain post-exchange.

Warrants and Options

The share consolidation will not affect the company’s existing warrants, which continue to trade under the symbol “DFSC.WT.U” on the TSX Venture and “DFSCW” on the Nasdaq. However, as dictated by the consolidation terms, the exercise price and the number of shares issuable from stock options and outstanding warrants will be proportionately adjusted. For instance, approximately 16,469 shares can be issued upon exercising current options, while 524,023 shares pertain to active warrants.

After the consolidation, the value of one warrant will correspond with the newly defined number of shares; 1,890 Listed Warrants will be required to purchase one post-consolidation common share at an exercise price of $9,450.

About DEFSEC Technologies Inc.

DEFSEC Technologies Inc. is renowned for designing and commercializing advanced tactical systems catering to military and security organizations. The company’s innovative offerings focus on digitizing tactical forces for improved real-time situational awareness and information sharing, particularly through integrated technology solutions involving drones and other smart devices.

Additionally, DEFSEC delivers cutting-edge countermeasure products against diverse threats, including electronic detection and drone surveillance. One notable product line includes ARWEN®, recognized for less-lethal munitions, alongside their recent PARA SHOT™ product tailored for law enforcement applications.

Based in Ottawa, Canada, DEFSEC continues to pioneer developments that aim to revolutionize the operational capabilities of its clients in military and security sectors. For further information about DEFSEC and its initiatives, visit their official website at defsectec.com.

Conclusion

As DEFSEC Technologies Inc. prepares for this share consolidation, it signals not only a strategic compliance initiative but also a fundamental shift toward better positioning for future opportunities. Stakeholders are encouraged to stay updated on forthcoming shareholder communications to navigate this transition smoothly.