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NUUK Surges Another 56% Pre-Market After 7-Fold Gain on Defense Ambition

Wallstreet InsightWednesday, Dec 18, 2024 4:31 am ET

1min read

Nukkleus(NUUK) just surged 56% pre-market, following a 755% jump on Tuesday, as the crypto company made a bold move into the national defense sector.

The traditional fintech pioneer focused on cryptocurrency, announced on Tuesday the successful acquisition of a 51% controlling stake in Star 26 Capital Inc., a defense acquisition company holding a 95% stake in RIMON. RIMON is a leading Israeli supplier of components for the Iron Dome missile defense system and other defense solutions.

The transaction, completed on December 15, 2024, involved cash, a promissory note, Nukkleus's common stock, and warrants to purchase additional shares. This deal includes an option for Nukkleus to acquire the remaining equity in Star 26 later.

By acquiring RIMON, Nukkleus gains control over two key business lines:

1. Distribution of Generators, Masts, and Lighting Solutions: RIMON operates through exclusive distributorship agreements with leading suppliers.

2. Development of Tactical Vehicles: RIMON designs and integrates tactical vehicles, including reconnaissance vehicles, mobile command units, and satellite broadcast platforms, serving special defense forces, intelligence agencies, and the Israeli Defense Forces (IDF).

Manny Shalom, the new CEO of Nukkleus, stated, This merger positions Nukkleus at the forefront of the booming defense industry. Our acquisition aligns with our strategic pivot to capitalize on opportunities in the defense sector, driven by geopolitical shifts and the war in Ukraine. This has led to a surge in investments in Israeli defense firms and a significant increase in defense indices in Israel and the US.

He added, RIMON's expertise in defense products and relationships with exporters like Rafael and Elbit Systems, enhances Nukkleus's capabilities in delivering innovative defense solutions.

Nukkleus plans to integrate Star 26's operations into its business structure while exploring further growth opportunities. The company also aims to expand into other sectors, such as financial services, real estate, and technology, leveraging its financial expertise to seize new opportunities in the changing Middle Eastern region.

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