Nukkleus Stock Surges After Firm Prices $10M Private Placement: Retail Chatter Shows Mixed Opinion
The firm intends to use the net proceeds to finance the proposed acquisition of Star 26 Capital Inc.
FollowShares of Nukkleus Inc (NUKK) surged over 18% on Thursday after the company announced the pricing of its $10 million private placement with a single New York-based family office investor. The stock became the top trending ticker on Stocktwits on Thursday morning.
The firm intends to use the net proceeds to finance the proposed acquisition of Star 26 Capital Inc.
Nukkleus plans to issue an aggregate of over 1.6 million units, with each unit being sold at an effective unit price of $6.
The placement will consist of one share of restricted common stock (or one pre-prefunded warrant to purchase a share of restricted common stock) and warrants exercisable for one and one-half shares of restricted common stock, exercisable at $6 per share.
The offering is priced above-the-market under Nasdaq rules, and the private placement will close on Dec. 19, the company said.
Despite the rally in the stock price, retail chatter on Stocktwits indicated a mixed take on the stock.
On Tuesday, Nukkleus announced it had 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.
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.
Meanwhile, Nukkleus stock has gained a whopping 38x in the last five days and is currently trading near its one-year highs.
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