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CENTENNIAL, Colo. - Nuburu Inc. (NYSE American:BURU), a micro-cap company with a market value of $1.24 million and showing recent momentum with an 11.48% gain last week according to InvestingPro data, announced Friday that the regulatory approval process for its acquisition of Italian defense technology company Tekne SpA is progressing positively through Italy’s Golden Power review process.
The acquisition forms part of Nuburu’s strategic transformation into defense and security markets, according to a company press release. Tekne is currently deploying its "Tactical Bubble" battlefield communication system for the Italian Ministry of Defense, a project expected to generate over €50 million in revenue. This strategic pivot comes as InvestingPro data reveals Nuburu’s challenging financial position, with an EBITDA of -$16.53 million and a concerning current ratio of 0.03, indicating potential liquidity challenges.
The Tactical Bubble system enables real-time communication and data sharing among military units in combat environments and includes capabilities to counter drones, cyber attacks, and electromagnetic warfare. The system has been showcased during recent Italian military exercises including Stella Alpina and Scudo 25.
"This confirms that the targeted acquisition of Tekne will be a cornerstone of Nuburu’s broader Defense & Security Hub strategy," said Alessandro Zamboni, Executive Chairman of Nuburu.
Nuburu, which specializes in high-power blue laser technology, is also pursuing the acquisition of an unnamed Software-as-a-Service platform designed to enhance operational resilience across critical infrastructure and defense networks.
Both transactions remain subject to regulatory review and stockholder approval, with due diligence and accounting audits currently in process.
Nuburu is expanding beyond its original focus on industrial laser manufacturing technology to target defense, security, and infrastructure resilience markets as part of its transformation strategy. The strategic shift comes amid significant market challenges, with InvestingPro data showing a 48.9% decline in share price year-to-date, though recent months have shown promising momentum with strong returns over the past week and month.
In other recent news, NUBURU, Inc. has entered into an equity purchase agreement with YA II PN, Ltd., allowing the company to sell up to $100 million in shares until May 2028. The funds are intended for general corporate purposes and potential acquisitions, such as a controlling interest in Tekne S.p.A., a company specializing in electronic warfare and cyber capabilities. NUBURU has also filed a Form S-3 Registration statement with the Securities and Exchange Commission to secure an additional $100 million to support its acquisition strategy. This move aligns with their plans to expand into defense technology, with regulatory reviews currently underway. Additionally, NUBURU has announced the formation of a strategic working group to enhance its Blue-Laser Business Unit, aiming to strengthen its position in the defense sector. In another development, the company will restate its financial statements due to identified misstatements related to debt issuance costs and senior convertible notes. These errors were deemed material, prompting the company to correct the classification of debt issuance costs and other financial discrepancies. Investors are advised to review the amended financial statements for a complete understanding of the adjustments.
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