KWESST Micro Systems Inc (CVE:KWE) stock soared on Thursday as the military technology company received a follow-on order from a US military customer for its signature TASCS IFM system.
Investors responded well, with the stock trading at an all-time high of $1.52 on the Canadian Venture Exchange on Thursday. The record was set after the stock closed nearly 20.3% higher on Wednesday.
Ottawa-based KWESST’ Tactical and Situational Control System (TASCS), streams real-time awareness and targeting information from any source (including drones) directly to a soldier’s smart device and weapon.
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KWESST earlier announced the contract, a key precursor to wider adoption, is for application of the TASCS IFM system on a 81mm mortar platform. The technology transforms the platform into a "smart" weapon system with greater accuracy and faster response time, improving soldier survivability and operational effectiveness. Work under the order is scheduled to commence immediately.
“Just last week, we announced that KWESST had received a follow-on order for approximately $1.1-million with a key US military customer to expand use of the company's TASCS IFM system in military exercises, a key precursor to wider adoption,” KWESST Executive Chairman David Luxton told Proactive.
“Since the announcement, investors interest in KWESST as picked up and the news was well received by shareholders.”
KWESST has completed an earlier two-phase initial contract with the same customer that marked the introduction of TASCS IFM on 81mm mortars in military exercises.
According to KWESST CEO Jeff MacLeod, the follow-on order is a “validating milestone” as the TASCS IFM on the 81mm mortar alone could ultimately be worth up to C$120 million in the US and another C$400 million worldwide, given the large installed base of 81mm mortars in service with so many NATO and allied military forces.
As previously announced, the TASCS IFM system has attracted interest from other NATO forces, who have requested proposals from KWESST, which the company is currently actioning.
KWESST said it is pursuing additional global markets for the TASCS IFM, which can also work on platforms such as 60mm mortars, grenade launchers, sniper rifles, drones, electronic decoys, and more. It is a total addressable market of more than C$1 billion.
KWESST has a diversified product line, springing from a single core technology — its proprietary Micro Integrated Sensor Systems Technology (MISST) — which involves ultra-miniaturization and integration of sensors, software, optics, ballistics, machine learning and artificial intelligence that boosts mission capability.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive
