Nukkleu’s share price rises by 4,775% after agreement for company tied to Iron Dome

On By Littum

  • Nukkleus shares surged more than 4,700% in two days after it said it was buying a stake in a defense firm.
  • Fintech acquired 51% of Star 26 Capital, which owns a controlling stake in a supplier for Israel’s Iron Dome missile system.
  • Nukkleus’ market value increased from $3 million to $125 million after the deal.

A little-known fintech company’s stock has surged more than 4,700% over the past two days after it announced a deal to acquire a controlling stake in a company with links to Israel’s Iron Dome missile defense system.

Before Tuesday, Nukkleus was a fintech company with a focus on the digital asset space. According to its website, its mission was to “bring together an industry-leading ecosystem of disruptive blockchain and digital finance brands.”

But late Tuesday, the company announced that it acquired a 51% stake in Star 26 Capital, a defense acquisition firm that held a 95% stake in a company called RIMON.

“RIMON is a leading Israeli supplier of components for the Iron Dome missile defense system, as well as other defense and tactical solutions,” Nukkleus said in his new release.

Israel’s Iron Dome system has long been considered an engineering marvel and has been used extensively in the past year amid missile attacks by Hamas and Iran.

According to Nukkleus, the transaction was completed on December 15. The deal included cash, a promissory note and common stock and warrants worth about $26 million, according to a filing made with the SEC.

The agreement also contained an option agreement that allowed Nukkleus to acquire the remaining shareholding in Star 26 at a later date.

Manny Shalom, Nukkleus’ newly appointed CEO, said its new stake in RIMON “strengthens Nukkleus’ capabilities to deliver innovative defense solutions.”

RIMON has two business areas: it sells generators, masts and lighting solutions and develops tactical vehicles for special defense forces.

Prior to the deal, Nukkleus had generated $0 in revenue in the past twelve months and had a market capitalization of approximately $3 million. As of Wednesday afternoon, the company had a market capitalization of about $125 million.

Nukkleu’s share price rose from $1.39 before the deal was announced to as high as $67.77 on Wednesday, representing a jump of about 4,775%.

Representatives for Nukkleus did not respond to a request for comment on the deal.


Nukkleu's share price

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