A little-known fintech company's stock has soared more than 4,700% over the past two days after it announced a deal to acquire a controlling stake in a firm with ties to Israel's Iron Dome missile defense system.
Before Tuesday, Nukkleus was a fintech company focused on the digital asset space. According to its website, its mission was to "aggregate an industry-leading ecosystem of disruptive blockchain and digital finance brands."
But late Tuesday, the company announced that it acquired a 51% stake in Star 26 Capital, a defense acquisition company that held a 95% ownership stake in a firm called RIMON.
"RIMON is a leading Israeli supplier of components for the Iron Dome missile defense system, as well as other defense and tactical solutions," Nukkleus said in its new release.
Israel's Iron Dome system has long been viewed as an engineering marvel and has seen heavy use in the last year amid missile attacks by Hamas and Iran.
According to Nukkleus, the transaction was finalized on December 15. The deal included cash, a promissory note, and common stocks and warrants valued at about $26 million, according to a filing made with the SEC.
The agreement also included an option agreement allowing Nukkleus to acquire the remaining equity stake in Star 26 at a later date.
Manny Shalom, Nukkleus's newly appointed CEO, said that its new ownership stake in RIMON "strengthens Nukkleus's capabilities in delivering innovative defense solutions."
RIMON has two business lines: it sells generators, masts, and lighting solutions, and develops tactical vehicles for special defense forces.
Before the deal, Nukkleus had generated $0 in revenue in the trailing twelve months and had a market valuation of about $3 million. As of Wednesday afternoon, the company had a market valuation of about $125 million.
Nukkleus stock price soared from $1.39 before the deal was announced to as high as $67.77 on Wednesday, representing a jump of about 4,775%.
Representatives for Nukkleus did not respond to a request for comment on the deal.
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