KWESST Micro Systems Inc. (NASDAQ: KWE) Stock More Than Doubled: What’s The Buzz?

The KWESST Micro Systems Inc. (NASDAQ: KWE) stock is expected to be one to watch out for this morning after it clocked gains of 112% on Wednesday. The remarkable rally was triggered following a significant new operational update from the company.

Production Ramp Up

The company announced yesterday that it had been successful in completing its plan for ramping up production volume of the ARWEN cartridges. That would also include the 40 mm baton round after the characterization testing completion by a reputed ballistics lab.

It ought to be noted that the ARWEN system had been an established one in law enforcement for a long time. It had been developed as an alternative to lethal force when it came to maintaining order in times of civil unrest and riots.

Crucial Details

KWESST Micro Systems used to offer 37 mm cartridges, which used to be launched from ARWEN launchers. In order to grow the market commanded by ARWEN-branded products, the company displayed its 40 mm baton cartridge at the yearly SHOT Show held in January this year.

It was revealed that in order to boost production, KWESST Micro Systems outsourced the assembly work for the 37 mm baton cartridge to an ammunition manufacturer based out of Canada. The same would happen with the 40 mm ones following characterization testing.

Key Quote

“To ramp up for high rate production, we have now transitioned outsourced assembly of the 37mm baton cartridge to a Canadian ammunition manufacturer and will shortly do the same with the new 40mm cartridge now that characterization testing has been completed by an independent ballistic test laboratory,” said Sean Homuth, KWESST President and CEO.

Traders Notes

+/- EMA(20)	1.58 (+6.33%)
+/- SMA(50)	1.53 (+9.80%)
+/- SMA(200)	6.28 (-73.25%)
5-Day Perf.	+15.86%
1-Month Perf.	+6.67%
3-Month Perf.	-52%
6-Month Perf.	-76.33%
YTD Perf.	-81.33%
1-Year Perf.	-87.83%
RSI(14)	51.9
ATR(14)	0.37
ADX(14)	25.24
Beta (5Y)	0.65