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CENTENNIAL, Colo. - NUBURU, Inc. (NYSE American:BURU) has executed the first €2 million in financial support to Tekne S.p.A., the company announced Wednesday. This funding represents the initial phase of a broader €15 million structured commitment outlined in the Updated Tekne Agreement announced on November 12. The move comes as NUBURU navigates challenging financial waters, with InvestingPro data showing the company's current ratio at just 0.27, indicating its short-term obligations exceed liquid assets.
The financial support was facilitated through the Inventory Monetization platform powered by Supply@ME Capital Plc, according to the press release. The companies reported that progress on all elements of their renewed strategic partnership remains on track, including industrial cooperation, financial support, and joint market initiatives.
Alessandro Zamboni, Executive Chairman and Co-CEO of NUBURU, stated that the milestone "reinforces our long-term strategic vision and the deep industrial alignment between our companies."
The partnership encompasses several workstreams, including joint global distribution plans for Tekne's products in the Americas, operational integration of engineering and production facilities, and co-investment in development programs focused on mobility, defense, and laser-based systems.
The remaining financial support includes plans for a €13 million convertible shareholder loan and NUBURU's acquisition of a 2.9% equity stake in Tekne. These steps remain subject to review by the Italian Government under Golden Power regulation.
The companies expect to finalize an Italian Network Contract by November 30, which will formalize shared operational resources and integrated commercial execution. NUBURU's stock has experienced significant volatility recently, with InvestingPro data showing a 27% drop over the past week despite a 35% gain over the last six months. Investors should note that NUBURU is scheduled to report earnings in just two days, on November 21.
NUBURU, founded in 2015 as a developer of industrial blue laser technology, has been expanding into defense technology, security, and critical infrastructure resilience under Zamboni's leadership. With a current market capitalization of just $0.75 million and an EBITDA of -$12.19 million for the last twelve months, the company faces significant profitability challenges. InvestingPro identifies that NUBURU "suffers from weak gross profit margins" - one of 14 InvestingPro Tips available for deeper analysis of the company's prospects.
In other recent news, Nuburu, Inc. is actively advancing its strategic acquisition initiatives as part of its Transformation Plan to build a defense-tech platform. The company has completed the first phase of its acquisition of Orbit S.r.l., securing a 10.7% equity stake with a $1.5 million investment, and plans to increase its stake to over 20% by the end of the year. Nuburu aims for majority ownership of Orbit, which specializes in crisis management software for mission-critical organizations, with a further planned investment of $3.5 million. Additionally, Nuburu has signed a Strategic Framework Agreement with Maddox Defense Incorporated to establish a joint venture focused on advanced drone systems, targeting the NATO UAV defense market. Despite these developments, Nuburu has received a warning letter from NYSE American LLC for failing to provide advance notification before issuing a press release about implementing a dual-CEO structure. The warning relates to a violation of Section 401(a) of the NYSE American Company Guide. Nuburu continues to maintain a strong cash position while pursuing these strategic goals.
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