The company stated that it intends to use the net proceeds from the private placement to fund its acquisition of Tiltan Software Engineering, a provider of AI software for the defense market.
Nukkleus (NUKK) shares jumped nearly 9% in early trading on Friday after the company announced the pricing of its $10 million private placement, noting that the proceeds would be used to make acquisitions and establish manufacturing zones.
The company highlighted a $9,500,000 investment by Esousa Group Holdings, a New York-based family office, and a $500,000 investment by Sixth Borough Capital Fund.
Nukkleus said it intends to use the net proceeds from the private placement to fund its acquisition of Tiltan Software Engineering, an AI software provider for the defense market. It would also use the proceeds to acquire 51% of Star 26 Capital, a defense company that holds 100% ownership in RIMON, an Israeli supplier of components for the Iron Dome missile defense system.
Retail chatter on Nukkleus dipped to ‘bullish’ from ‘extremely bullish’ a day ago, with chatter at ‘extremely high’ levels, according to data from Stocktwits.
The company added that the private placement would also enable it to establish advanced manufacturing zones in both the Baltics and Israel, designed to support civil and defense aviation needs. This would be achieved through a joint venture with Mandragola, an Israeli business development and investment company. This company specializes in advanced technologies and strategic partnerships, marking Nukkleus’ entrance into commercial aviation services.
A user on Stocktwits noted that “private offering is always good news.”
Nukkleus also looks to use it for the commercialization of drone payload licenses from Blade Ranger (BLRN). As part of the private placement, the Nukkleus plans to issue a total of 200 units. The company stated that each unit will be priced at $50,000 and will include one restricted Series A convertible preferred share, along with restricted common stock warrants that allow the purchase of 15,957 common shares.
The closing of the private placement is expected to occur on or about September 9. Shares of Nukkleus have declined by 86% this year and have increased by over 155% in the last 12 months.
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