Nuburu announces strategic acquisition agreement

Nuburu (BURU) announced its entry into a commitment letter aimed at expanding its current defense business and establish a new presence in the security sector. This strategic transaction with a private equity investment group is anticipated to include recapitalization, multiple acquisitions, licensing of advanced technologies, and the introduction of a management team with expertise relevant to these new ventures. The initiative will be led by executive chairman Alessandro Zamboni. Through this first acquisition, Nuburu plans to develop a new hub focused on defense and security solutions and will embark on acquiring interests in additional technology companies that align with its strategic vision. This will enable Nuburu to expand its current expertise to generate potential synergies with the new ventures. In that regard, pursuant to the terms of the commitment letter, Nuburu would acquire a license of certain technology that would allow it to expand its existing business within the defense sector, a controlling ownership interest in a defense-tech company that specializes in the design, production, and outfitting of a diverse range of vehicles, including industrial and military applications, as well as electronic devices for defense and security, advanced telecommunications, and tracking systems, and a controlling interest in a Software as a Service startup focused on operational resilience. The anticipated acquisitions will occur in two stages, with the first stage involving the acquisition of a license and purchase of a 20% ownership interest for an aggregate price of $1.5M in cash alongside $23.5M in five-year notes bearing a 10% interest rate. The second stage, requiring stockholder approval, involves the acquisition of additional ownership interests, resulting in Nuburu holding a controlling interest in the target entities, which would involve issuing greater than 20% of the company’s outstanding common stock as part of the purchase price.