Nukkleus Inc., a management consulting services company, reported the unregistered sale of equity securities in a recent SEC filing. On Monday, the company entered into a securities purchase agreement, selling 138,556 shares of common stock at $1.7765 per share to an accredited investor, generating $246,145 in gross proceeds.
The transaction involved the issuance of Series 24 notes by ProETP DAC, identified by the tracker number CH1108678926 / 23714. Nukkleus, which trades on The Nasdaq Stock Market under the symbols NASDAQ:NUKK for its common stock and NASDAQ:NUKKW for its warrants, utilized exemptions under Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D for the sale.
The company emphasized that no advertising or general solicitation was employed and that the securities were sold to a single party that qualifies as an accredited investor. Additionally, the company has placed restrictions on the transfer of the newly issued common stock in compliance with the Securities Act.
The filing also included a financial statement and an exhibit detailing the securities purchase agreement dated November 19, 2024. This move by Nukkleus Inc. follows its previous identity as Brilliant Acquisition Corp before the name change on September 9, 2019.
The company, headquartered in Jersey City, New Jersey, is classified as an emerging growth company and has not elected to use the extended transition period for complying with new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
This information is based on a press release statement filed with the SEC and provides insights into the company's latest financial maneuverings.
In other recent news, Nukkleus Inc. has been active with several significant changes and agreements. The company recently announced a one-for-eight reverse stock split and increased its authorized shares from 40,000,000 to 150,000,000. Nukkleus also issued Senior Unsecured Promissory Notes totaling $437,500 to X Group Fund of Funds, carrying a 12% annual interest rate.
In addition, there have been substantial changes to Nukkleus's board of directors. Notably, the company saw the resignations of Daniel Marcus, Brian Shwieger, and Nicholas Gregory, and the appointments of Tomer Nagar, Aviya Volodarsky, Menachem Shalom, and David Rokach as independent directors. Shalom also took over as the new CEO, replacing Jamal Khurshid.
Nukkleus also finalized the termination of its service agreements with Triton Capital Markets Ltd. and FXDirectDealer LLC. The company is also dealing with potential delisting from Nasdaq due to compliance issues, including not meeting the minimum bid price and market value requirements.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Nukkleus Inc.'s financial situation, providing context to the company's recent equity sale. The company's market capitalization stands at a modest $3.78 million, reflecting its small-cap status. This aligns with the relatively small scale of the recent $246,145 equity sale reported in the article.
InvestingPro Tips highlight some concerning trends for Nukkleus. The company is not profitable over the last twelve months, with a negative P/E ratio of -0.22. This unprofitability is further emphasized by the operating income margin of -140.91% for the last twelve months as of Q3 2024, indicating significant operational challenges.
The company's stock performance has been notably poor, with InvestingPro data showing a staggering -97.26% total return over the past year. This dramatic decline in share value provides context for the company's need to raise capital through equity sales, as described in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Nukkleus Inc., providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.