DEFSEC Technologies Announces CAD$2.5 Million Registered Direct Offering

DEFSEC Technologies Inc. has announced a definitive agreement for a registered direct offering of 673,006 common shares at a price of CAD$3.74 (approximately US$2.63) per share, aiming to raise gross proceeds of approximately CAD$2.5 million. The transaction is expected to close on or about June 26, 2026, pending the satisfaction of customary closing conditions. H.C. Wainwright & Co. is serving as the exclusive placement agent for this offering.

Based in Ottawa, Canada, DEFSEC Technologies specializes in the development and commercialization of advanced tactical systems for military and security forces. The company’s product portfolio includes technologies that enhance real-time situational awareness and targeting capabilities, integrating data from various sources, including drones, directly into users' smart devices. DEFSEC also offers countermeasures against electronic threats and has established a reputation with its ARWEN® less-lethal munitions platform, along with a new proprietary line branded PARA SHOT™, catering to law enforcement and other sectors.

The capital raised from this offering is intended for working capital and general corporate purposes, which could bolster DEFSEC's ongoing development initiatives and operational capabilities. The issuance of unregistered warrants, which allows investors to purchase additional shares at an exercise price of CAD$4.39, indicates a strategic move to potentially enhance future capital inflows and investor engagement. These warrants will be immediately exercisable and will expire five years from the date of issuance, providing investors with an incentive to support the company’s growth.

The tactical systems sector is witnessing increasing demand as military and security forces globally seek advanced technologies to enhance operational effectiveness. DEFSEC's focus on integrating next-generation solutions aligns with broader trends in defense spending and modernization initiatives, particularly as nations prioritize investments in digital warfare capabilities and less-lethal options for law enforcement. This fundraising effort positions DEFSEC to capitalize on these market dynamics and expand its footprint in a competitive landscape.

In conclusion, the successful closure of this offering could signal a positive outlook for DEFSEC Technologies, enabling the company to further innovate and expand its product offerings. As the defense sector continues to evolve, companies like DEFSEC that are agile and responsive to market needs may find significant opportunities for growth and development. The strategic use of raised capital will be crucial in navigating the complexities of the defense market and in meeting the increasing demands for advanced tactical solutions.