Nukkleus announces $10M private placement

Nukkleus (NUKK) announced the pricing of a private placement with a single New York-based family office investor. The aggregate gross cash proceeds are expected to be $10M, before deducting fees to the placement agent and other offering expenses payable by the company. The company intends to use the net proceeds from the private placement to finance the proposed acquisition of Star 26 Capital, a defense acquisition company holding 95% ownership in Rimon. Rimon is an Israeli supplier of components for the Iron Dome missile defense system, as well as other defense and tactical solutions. for general corporate purposes and working capital. In connection with the private placement, the company is planning to issue an aggregate of 1,666,666 units. Each unit will be sold at an effective unit price of $6.00 per unit and will consist of one share of restricted common stock and warrants exercisable for one and one-half shares of restricted common stock, exercisable at $6.00 per share. The offering is priced above-the-market under Nasdaq rules. The closing of the private placement is expected to occur on or about December 19, subject to the satisfaction of certain customary closing conditions. Dawson James Securities is acting as the Exclusive Placement Agent for the private placement.