Nukkleus transfers promissory note and warrant to third party following agreement

Published 30/06/2025, 13:34
Nukkleus transfers promissory note and warrant to third party following agreement

Nukkleus Inc. (NASDAQ:NUKK), currently trading at $9.96 and showing significant volatility in recent months with a 73% decline over the past six months, reported Monday that a senior unsecured promissory note and a related stock purchase warrant, previously issued to East Asia Technology Investments Limited, have been transferred to an unaffiliated third party. The information was disclosed in a press release statement based on a recent SEC filing. InvestingPro analysis suggests the stock is currently trading below its Fair Value.

According to the filing, Nukkleus originally issued the note in the principal amount of $515,500 to East Asia Technology Investments Limited in exchange for cash proceeds of $412,075. The note carries an annual interest rate of 12% and was due on February 1, 2025, with an increased rate of 24% per year thereafter. As part of the original loan agreement, Nukkleus also issued a stock purchase warrant to acquire 175,000 shares of common stock on a post-reverse stock split basis. With a current market capitalization of $53.4 million and a concerning current ratio of 0.13, InvestingPro data indicates the company’s short-term obligations exceed its liquid assets.

Effective as of Wednesday, East Asia Technology Investments Limited sold both the note and the warrant to an unrelated third party. In connection with this transaction, Nukkleus, East Asia Technology Investments Limited, and Palm Global Technologies Limited entered into a mutual release agreement. This agreement, dated June 19, 2025 and executed June 25, 2025, provides that Palm and East Asia Technology Investments Limited released Nukkleus, and Nukkleus released both Palm and East Asia Technology Investments Limited, from all claims and liabilities related to the note and warrant.

The note and warrant, now held by the third party, remain obligations of Nukkleus. The company’s common stock and warrants are listed on the Nasdaq Stock Market under the symbols NUKK and NUKKW, respectively.

This summary is based on a press release statement and information from a recent SEC filing.

In other recent news, Nukkleus Inc. has been added to the Russell Microcap Index effective June 30, 2025. This inclusion is part of the annual reconstitution of the Russell indexes, which are widely used by investment managers and institutional investors as benchmarks for significant assets. The addition to the index marks a notable development for Nukkleus as it continues its strategy of acquisitions within the Aerospace & Defense sector. In December 2024, Nukkleus announced plans to acquire a 51% controlling interest in Star 26 Capital Inc., which owns B. Rimon Agencies Ltd., an Israeli supplier of defense products. This acquisition is still pending, subject to closing conditions and shareholder approval. The Russell Microcap Index captures small-cap U.S. stocks based on market capitalization, providing automatic inclusion in growth and value style indexes for a year. Nukkleus’s focus remains on acquiring suppliers in the defense, aerospace, and advanced manufacturing sectors, with operations in the United States and Israel. The company targets Tier 2 and Tier 3 companies that support national security infrastructure.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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