Nukkleus Stock Skyrockets 12x After Acquiring Controlling Stake In Israeli Iron Dome Supplier RIMON: Retail Frenzy Takes Over
Nukkleus said the transaction was finalized on Dec. 15, 2024. The total purchase price stood at $26 million, including cash, a promissory note for Nukkleus's common stock, and warrants to purchase additional shares of the common stock.
FollowShares of Nukkleus Inc (NUKK) rocketed over 12x on Tuesday after the fintech firm announced it has acquired a 51% controlling stake in Star 26 Capital Inc., a defense acquisition company holding 95% ownership in RIMON.
RIMON is an Israeli supplier of critical components for the Iron Dome missile defense system, and other defense and tactical solutions. Following the announcement and the subsequent surge in share price, the stock became the top trending ticker on Stocktwits.
Despite the huge rally, the stock is still far from its one-year high of about $86.
Nukkleus said the transaction was finalized on Dec. 15, 2024. The total purchase price stood at $26 million, including cash, a promissory note for Nukkleus's common stock, and warrants to purchase additional shares of the common stock.
The firm said the acquisition also includes an option agreement that permits Nukkleus to acquire the remaining equity in Star 26 at a later date.
With the acquisition, Nukkleus said it gained control over RIMON's diversified operations, including two key business lines: the distribution of generators, masts, and lighting solutions and the development of tactical vehicles.
CEO Manny Shalom said the acquisition of Star 26 and RIMON aligns with the firm’s strategic pivot to capitalize on opportunities in the defense sector, which has seen rapid growth due to geopolitical shifts in the Middle East and the war in Ukraine.
“This has resulted in a surge of investments and acquisitions in Israeli defense firms such as PARAGON and PROTEGO, alongside a 120% increase in Israel's defense indices and a 38% rise in similar indices in the US,” Shalom said.
Nukkleus also said it plans to integrate Star 26 operations into its business structure and will explore further growth opportunities. It seeks to broaden its activities into other sectors, serving as a merchant bank for companies in banking, U.S. real estate, and technology-populated co-working space campus locations.
Meanwhile, the massive rally in the stock price led to a surge in retail chatter on Stocktwits. Most followers of the ticker expressed enthusiasm.
Interestingly, NUKK stock has lost over 33% on a year-to-date basis despite the surge on Tuesday.
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