Nukkleus eyes acquisitions in air defense sector

NEW YORK - Nukkleus Inc. (NASDAQ: NUKK), a $53.37 million market cap company whose stock has surged over 1,000% in the past six months according to InvestingPro data, has announced a strategic partnership with Translink Corporate Finance to seek acquisition opportunities in the air defense industry. This move aligns with a recent executive order by U.S. President Donald Trump to develop a next-generation missile defense system akin to Israel’s Iron Dome.

The collaboration aims to capitalize on the increasing demand for innovative missile defense solutions. Nukkleus’s CEO, Menny Shalom, expressed the company’s intent to identify companies that align with the U.S. government’s defense priorities and Nukkleus’s growth vision.

The executive order, which mandates the construction of a sophisticated missile defense shield for the United States, has been characterized as a transformative moment for the defense industry, emphasizing the need for advanced, domestically-produced defense systems.

Nukkleus is positioning itself strategically within this context. The firm recently announced plans to acquire a 51% stake in Star 26 Capital Inc., which owns a majority in RIMON, a supplier of components for the Iron Dome systems. This pending acquisition is subject to shareholder approval and illustrates Nukkleus’s commitment to expanding its footprint in the defense sector.

Adding to its strategic arsenal, Nukkleus has welcomed Brigadier General Mark Beesley (Ret.) as a senior advisor. Beesley’s military experience and expertise in defense innovations are expected to inform the company’s acquisition strategy. InvestingPro analysis indicates the company currently operates with moderate debt levels, though its overall financial health score remains weak at 1.31 out of 5.

The partnership with Translink, known for its role in significant transactions such as the Triad RF Systems and VITRON acquisitions, provides Nukkleus with the expertise necessary to navigate the complex landscape of defense industry mergers and acquisitions.

In light of global increases in defense spending and the demand for advanced missile defense systems, Nukkleus’s collaboration with Translink and its advisory capabilities are seen as key to leveraging emerging opportunities in the defense market.

The information in this article is based on a press release statement from Nukkleus Inc. Investors should note that the company is scheduled to report its next earnings on February 13, 2025. For deeper insights into Nukkleus’s financial metrics and additional ProTips, visit InvestingPro.

In other recent news, Nukkleus Inc. has been making strategic moves to bolster its position in the defense sector. The company has appointed retired Brigadier General Mark Beesley as an advisor to the board, leveraging his extensive military and business acumen. In addition, Nukkleus has divested its subsidiary, Digital RFQ Limited (DRFQ), for £1,000, aligning with its strategic shift towards the defense sector.

The company also acquired a 51% controlling stake in Star 26 Capital Inc., a defense acquisitions company, for $15 million. This acquisition expands Nukkleus’s operations to include the distribution of generators, masts, and lighting solutions for defense and intelligence agencies.

On the financial front, Nukkleus reported a current revenue of $10.75 million and a gross profit margin of 4.67%, despite a negative EBITDA of $14.54 million in the last twelve months. The company is also investigating a potential discrepancy in the number of common stock shares it is required to issue following a recent reverse stock split.

In related news, Two Hands Corp underwent a significant leadership overhaul with Emil Assentato assuming control of approximately 57% of the company’s issued and outstanding common stock. These developments highlight the ongoing operations and strategic shifts within Nukkleus Inc. and Two Hands Corp.

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