$26 million stake in Iron Dome supplier RIMON increases defense ambitions

On December 19, 2024By Littum

Nukkleus Rockets Higher: $26M Stake in Iron Dome Supplier RIMON Boosts Defense Ambitions

Nukkleus Inc. (NASDAQ:NUKK) shares traded higher Tuesday after announcement of a significant acquisition.

On December 15, Nukkleus successfully acquired a controlling 51% stake in Star 26 Capital Inc., a defense acquisition company.

Star 26 has a 95% stake in RIMON, an Israeli supplier of critical components for the Iron Dome missile defense system and other defense solutions.

The purchase, valued at $26 million, was financed through a combination of cash, debentures and Nukkleu common stock, along with warrants for additional shares.

This move includes an option for Nukkleus to acquire the remaining equity in Star 26 at a later date.

RIMON’s operations span two key sectors: distribution of generators, masts and lighting solutions and development of tactical vehicles for special defense forces and intelligence services.

The acquisition strengthens Nukkleus’ position in the fast-growing defense industry, driven by geopolitical tensions and increased investment in Israeli defense companies.

Manny Shalom, Nukkleus’ new CEO, emphasized that this acquisition is in line with the company’s strategy to take advantage of opportunities in the defense sector, especially amid the ongoing conflicts in the Middle East and Ukraine.

Going forward, Nukkleus said it plans to expand into other sectors, including banking, real estate and technology, leveraging its financial expertise to seize new opportunities. The merger is expected to strengthen Nukkleus’ capabilities to deliver innovative defense solutions to both the Israeli and US markets.

Price action: NUK shares are trading 558% higher at $9.15 at last check on Tuesday.

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This article Nukkleus Rockets Higher: $26M Stake in Iron Dome Supplier RIMON Boosts Defense Ambitions originally appeared on Benzinga.com