#Canada #Ottawa #Private Placement #DEFSEC Technologies #CAD$5.54 Million

DEFSEC Technologies Inc. Announces CDN$5.54 Million Private Placement

In an exciting development for investors and stakeholders, DEFSEC Technologies Inc. (TSXV: DFSC, NASDAQ: DFSC) has officially entered into agreements for a private placement aimed at raising approximately CAD$5.54 million (~USD 4 million). This move is indicative of the company’s intention to enhance its capabilities in the rapidly evolving defense technology sector.

Details of the Private Placement

The private placement arrangement involves the issuance of 1,951,219 common shares, each priced at CAD$2.84. In addition, the deal includes pre-funded warrants and common warrants that will allow investors to purchase additional shares in the future. Specifically, each common warrant will enable the holder to buy one additional common share at an exercise price of CAD$3.30, valid for a period of 60 months following the closing of the offering.

The company has appointed H.C. Wainwright & Co. as the exclusive placement agent for this initiative. The anticipated gross proceeds, before deducting any fees and offering expenses, significantly bolster DEFSEC's ability to pursue vital projects and enhance its operational framework.

Use of Proceeds

The influx of capital is strategically earmarked for several critical areas, including:

• - Business and Market Development: Expanding DEFSEC's footprint in the defense sector.
• - Intellectual Property Protection: Safeguarding innovations that drive the company's growth.
• - General Working Capital: Ensuring the company remains fluid operationally while launching new products and enhancing existing offerings.

Expected Closing and Regulatory Considerations

The transaction is slated to close around August 18, 2026, pending customary closing conditions, particularly the approval from the TSX Venture Exchange. As part of compliance, DEFSEC notes that these securities have not been registered under the United States Securities Act. Therefore, potential investors in the U.S. face restrictions on offering and selling these securities unless a proper exemption applies.

About DEFSEC Technologies Inc.

DEFSEC Technologies is a pioneering company in defense technology, focusing on creating next-generation tactical systems for defense and security applications. Their innovative portfolio includes solutions that provide real-time situation awareness and targeting capabilities via smart devices and weapons systems. Notable offerings comprise systems that counter electronic detection, drones, and other threats. The company also has a line of less-lethal products marketed under the brand name PARA SHOT.

Headquartered in Ottawa, Canada, DEFSEC is positioned at the forefront of military technology, ensuring security forces are equipped with cutting-edge tools for modern challenges. The funds raised through this private placement will undoubtedly enhance DEFSEC’s ability to meet the demands of an ever-changing global defense landscape.