NUBURU advances in defense sector with strategic acquisition

CENTENNIAL, Colo. - NUBURU, Inc. (NYSE American: BURU), a micro-cap company with a market capitalization of just $0.62 million known for its high-power blue laser technology, has completed a strategic acquisition of a 20% stake in a defense and security hub for $25 million, marking a significant step in its expansion into the defense and security sectors. The initial investment comprises $1.5 million in cash and $23.5 million in five-year notes with a 10% interest rate. According to InvestingPro data, the company’s stock has experienced significant volatility, with a 97% decline over the past year.

This transaction is the first phase of a planned two-stage acquisition, which will eventually grant NUBURU a controlling interest in the target entities, pending stockholder approval. The second phase will also include a joint development agreement to enhance the adoption of advanced laser technology in the defense industry. InvestingPro analysis reveals that NUBURU’s current ratio of 0.15 indicates potential liquidity challenges, with short-term obligations exceeding liquid assets.

The target entities include a defense-tech company and a Software as a Service startup, focusing on operational resilience. The defense-tech company has a substantial client base, with approximately 60 clients across seven countries, including the USA, Italy, and the UAE. It also boasts a robust order backlog totaling $309 million and additional options worth $181 million.

Alessandro Zamboni, Executive Chairman of NUBURU, stated that this acquisition aligns with the company’s strategy to strengthen its position in the defense and security markets, leveraging its laser technology expertise. Zamboni highlighted that the move is consistent with a capital-light growth strategy, as evidenced by the recent extinguishment of the company’s long-term debt and the focus on maintaining intellectual property, key personnel, and strategic relationships.

The acquisition is part of NUBURU’s broader growth strategy, which includes diversification into defense-tech, security, and operational resilience solutions. The company, founded in 2015, has been under new management, aiming to capitalize on strategic partnerships and acquisitions to accelerate growth in high-value sectors.

The press release also mentions that further materials, including a proxy statement, will be filed with the SEC concerning the proposed transaction. This will provide stockholders with necessary information before making any voting or investment decisions.

This news is based on a press release statement and does not constitute an endorsement of NUBURU’s claims or future performance.

In other recent news, Nuburu, Inc. has announced a public auction of its assets following a notice of default on its senior notes. The auction is set for February 19, 2025, and comes as the company faces financial challenges. Additionally, Nuburu is undergoing significant leadership changes as part of a Transformation Plan, with the resignation of several key executives and the reshaping of its board. Alessandro Zamboni has been appointed as Executive Chairperson to lead this restructuring effort. The company has also secured a financial agreement with S.F.E. Equity Investments SARL to address its defaulted promissory notes and ensure operational funding. In a recent stockholder meeting, shareholders approved several proposals, including the election of directors and the issuance of common stock beyond the 19.9% cap. Furthermore, Nuburu has expanded its Board of Directors by appointing two new members, Dario Barisoni and Shawn Taylor, to enhance its governance. These developments reflect Nuburu’s strategic efforts to stabilize its financial position and strengthen its leadership as it navigates through this pivotal phase.

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