Why These Defense Stocks Are Declining This Week

4. KWESST Micro Systems Inc. (NASDAQ:KWE)

Weekly Decline: -24.78%

KWESST Micro Systems Inc. (NASDAQ:KWE) is engaged in the development of tactical systems and ammunition for military and security forces.

The company’s share price was up 13.70% during the week of February 17 after positive recent developments, amid improved financial results for the first quarter of fiscal 2025 and the closing of the first tranche of its CAD$3.5 million private placement. However, the gains were reversed last week after the shares fell by nearly 25%.

While there was no apparent event that triggered the dip last week, the stock has been declining in 2025, with a year-to-date drop of nearly 40%. A likely reason behind this is KWESST Micro Systems Inc. (NASDAQ:KWE) running against time to regain compliance with NASDAQ’s minimum $1 per share price requirement.

In November last year, NASDAQ extended KWE’s listing for another 180 days, giving the company until May 12, 2025, to regain compliance. KWESST Micro Systems Inc. (NASDAQ:KWE) was trading at $0.4301 as of the close of business on February 28.