KWESST Micro Systems (NASDAQ: KWE) stock more than doubled during intraday trading Monday after the company secured a $48 million software development contract with Thales Canada.
KWESST Micro Systems recently announced that it received a sub-contract from Thales Canada. The contract aims to modernize the command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems of the Canadian Army.
Under the terms of the sub-contract, KWESST will provide specialized software services as part of the Canadian Department of National Defence Land C4ISR series of contracts.
The contract, signed on June 7, 2024, is a task-based arrangement. KWESST will receive a maximum workshare of around CAD 48 million over an initial six-year term. The anticipated revenue for KWESST from this contract will depend on when and how many task orders the customer issues. As the Company receives authorization and communication for work tasks and begins work, Management will guide on the impact of those activities on revenue.
Sean Homuth, CEO of KWESST, expressed enthusiasm about the award, emphasizing its alignment with the company’s strategic vision. He stated,
“This award is further validation of our strategy to execute on programmatic digitization work that is foundational to the technology that underlies all of our products in both the Defence and Public Safety markets. This includes KWESST Lightning and our goal to bring these same situational awareness capabilities to law enforcement and first responders. We look forward to further strengthening our close working relationship with Thales Canada as we collaborate to deliver these critical capabilities to Canada’s men and women in uniform.”
In response to the collaboration, Ian Krepps, VP Growth at Thales Canada, lauded KWESST’s innovative prowess and agile capabilities. He expressed confidence in the joint effort’s ability to deliver world-class C4ISR solutions, crucial for supporting the Canadian Army’s digitization initiatives.
KWESST Micro Systems (NASDAQ: KWE) Stock Reaction
On Monday, KWE stock surged 117.15%, closing at $0.8686, marking a 100.14% increase for the week. The trading volume was 337,111,968 shares, significantly higher than the average daily volume of 5.47 million.
