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

Nucleus Inc. (NASDAQ:NUKK) shares are trading higher on Tuesday following the announcement of a significant acquisition.

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

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

The $26 million acquisition was funded through a combination of cash, notes and Nukkleus common stock, as well as warrants for additional shares.

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

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

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

Manny Shalom, the new CEO of Nukkleus, emphasized that this acquisition is consistent with the company’s strategy to capitalize on opportunities in the defense sector, especially given the ongoing conflicts in the Middle East and Ukraine.

Going forward, Nukkleus plans to expand into other sectors, including banking, real estate and technology, leveraging its financial expertise to capitalize on opportunities as they arise. The merger is expected to enhance Nukkleus’ capabilities in providing innovative defense solutions to both the Israeli and US markets.

Price promotion: 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

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