Nuburu (BURU) Plunges 18.02% to Record Low as Defense Tech Transition Delays Weigh

Nuburu (BURU) fell 1.49% on Monday, marking its third consecutive day of declines, with the stock plunging 14.29% intraday to hit a record low. The three-day slump has erased 18.02% of its value, underscoring mounting investor concerns amid its high-risk transformation strategy.

The company’s aggressive pivot to defense technology through its phased acquisition of Italian firm Tekne S.p.A. has yet to translate into financial stability. Tekne’s existing €67.4 million in defense contracts with Italy’s Ministry of Defense aligns with Nuburu’s vision for laser-based military applications, but regulatory hurdles and a fragmented ownership structure—led by major shareholder Brick Lane Capital—add uncertainty. The acquisition, now under Italy’s “Golden Power” oversight, reflects broader ambitions to anchor high-power laser systems in defense manufacturing, though execution risks remain.

Financial challenges persist as Nuburu reported zero revenue in Q2 FY25 and a USD 12.2 million net loss, driven by soaring operating costs. A USD 100 million standby equity purchase agreement and a recent USD 125,000 convertible note from Brick Lane highlight its reliance on capital infusions. While NYSE compliance extensions until October 2026 offer temporary reprieve, the company’s negative equity position and lack of profitability underscore its precarious liquidity. With a beta of 3.62 and a 52-week range of $0.13–$1.60, the stock’s volatility reflects skepticism over its ability to sustain operations without continuous dilution.

Investor sentiment remains cautious as the defense-tech transition faces execution and regulatory delays. Tekne’s integration could provide a revenue lifeline, but Nuburu’s reliance on private placements and convertible debt raises concerns about shareholder dilution and governance. The path forward hinges on balancing strategic momentum with financial discipline—a tightrope walk that will define its survival in a sector demanding both innovation and profitability.