Nuburu Stock Rebounds After Four-Day Slide Here's Why
- Nuburu's stock gains 11% in premarket after acquisition update The stock had declined in the previous four sessions The acquisition will be completed in two phases, with final agreements signed by the end of 2026
Nuburu Inc.'s (BURU) stock is on track to halt a mini downtrend after its unit acquired a 10.7% stake in Italian software company Orbit S.r.l. The shares were up 11% in premarket trading on Friday, after declining in the previous four sessions.
Nuburu first announced the acquisition earlier this month, sending the stock up by more than 86%.
The transaction will be completed in two phases, with Nuburu Defense LLC investing a total of $5 million in Orbit over the next 36 months. The process began with the recently concluded $1.5 million investment, which secured the 10.7% equity stake in the company.
In the second stage, Nuburu Defense will purchase the remaining shares of Orbit at a pre-money valuation of $12.5 million, with completion targeted by December 31, 2026. Orbit expects its revenue to grow to $3.2 million in 2026, $10.8 million in 2027, and $19.3 million in 2028.
Earlier this month, Nuburu Defense and Maddox Defense signed a joint venture agreement to manufacture advanced drones for military and commercial use, intending to generate about $100 million in annual revenue by 2028.
What Are Stocktwits Users Saying?
Despite the premarket gains, retail sentiment on Stocktwits turned 'bearish'. It was 'neutral' a day earlier.
However, the acquisition whetted investor appetite, with one user expecting gains of over $1. It is currently at $0.38.
BURU's stock has a short interest of 16%.
Year-to-date (YTD), the shares have more than halved in value.
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