Nukkleus Signs MOU to Substantially Increase Holdings in Jacobi Asset Management

Rhea-AI Summary

Nukkleus Inc. signs MOU to acquire an additional 16% in Jacobi Asset Management, Europe's first approved Bitcoin spot ETF, elevating total holdings to approximately 20%. The potential acquisition aligns with Nukkleus' vision and commitment to pioneering in the fintech industry, leveraging innovative financial tools like blockchain and digital assets to transform and democratize the global financial landscape. The MOU outlines a framework for Nukkleus to negotiate the acquisition of an additional 10% stake in Jacobi outright, as well as an option to acquire One Hoxton Holding Ltd, which would hold an additional 6% of Jacobi. Completion of the proposed acquisition will be subject to successful completion of diligence and the negotiation and execution of definitive agreements.

Insights

Financial Analyst

The MOU between Nukkleus Inc. and Jacobi Asset Management signals a strategic maneuver within the fintech and ETF (Exchange-Traded Fund) landscape. By potentially increasing its stake to 20% in Jacobi, Nukkleus not only diversifies its portfolio but also deepens its foothold in the burgeoning sector of digital asset management and blockchain technology. This move could be indicative of Nukkleus' confidence in the growth potential of Bitcoin and digital assets as mainstream investment vehicles.

From an investment perspective, this acquisition could enhance Nukkleus' earnings potential and provide synergistic benefits, given Jacobi's pioneering status in the European ETF market. The right of first refusal included in the MOU suggests a competitive edge for Nukkleus, as it may deter other potential investors and solidify Nukkleus' position in subsequent negotiations. Stakeholders should monitor the completion of due diligence and definitive agreements, as these will provide further clarity on the financial implications of the deal.

Market Research Analyst

Exploring the broader market implications, the integration of a Bitcoin spot ETF into Nukkleus' offerings aligns with a trend towards digital currency investment products gaining legitimacy and traction in traditional financial markets. The ETF structure provides a regulated, transparent and potentially more accessible means for institutional and retail investors to gain exposure to Bitcoin, compared to direct cryptocurrency purchases.

This strategic move may signal to the market Nukkleus' intention to be at the forefront of financial innovation. It could also influence investor sentiment and market dynamics within the fintech space, potentially prompting other firms to consider similar partnerships or investments in digital asset products. The ripple effects of such a deal may lead to increased competition and innovation within the sector, benefiting consumers with more diverse and sophisticated financial products.

Blockchain Technology Expert

The involvement of blockchain technology in this context is crucial. Blockchain serves as the underlying technology for Bitcoin and, by extension, the Bitcoin spot ETF. Nukkleus' investment in Jacobi suggests an endorsement of blockchain's reliability and potential for disrupting traditional financial systems. The acquisition could provide Nukkleus with valuable blockchain expertise and infrastructure, which could be leveraged to develop new fintech solutions.

Furthermore, this development could spur further adoption of blockchain across various financial services, enhancing security, transparency and efficiency. Stakeholders in the blockchain industry should consider the implications of this MOU as a validation of the technology's application in regulated financial products and the potential for increased institutional adoption.

MOU Sets Stage for Nukkleus to Acquire Additional 16% in Jacobi, Europe's First Approved Bitcoin Spot ETF, Elevating Total Holdings to Approx. 20%

NEW YORK--(BUSINESS WIRE)-- Nukkleus Inc. (NASDAQ: NUKK), a pioneering force in the fintech industry, today announced the signing of a Memorandum of Understanding (MOU) as of January 16, 2024, that contemplates a substantial increase in Nukkleus’ holdings in Jacobi Asset Management (“Jacobi”).

Jacobi, distinguished as the sponsor of Europe's only regulated and approved Bitcoin spot ETF traded on Euronext, represents a strategic alignment with Nukkleus’ vision and commitment to pioneering in the fintech industry. This partnership extends Nukkleus' reach into innovative financial markets, complementing its diverse portfolio that includes breakthrough technologies in blockchain-powered payment solutions and digital asset management.

The MOU outlines a framework for Nukkleus to negotiate the acquisition of an additional 10% stake in Jacobi outright, as well as an option to acquire One Hoxton Holding Ltd, which would hold an additional 6% of Jacobi. This potential acquisition, combined with Nukkleus’ existing holdings, would increase Nukkleus’ total stake in Jacobi to approximately 20%. Furthermore, as part of the MOU, Nukkleus has been granted a right of first refusal in these negotiations.

The MOU is effective for a period of 90 days and may be extended by mutual agreement in writing. Completion of the proposed acquisition will be subject to successful completion of diligence and the negotiation and execution of definitive agreements.

"Increasing our stake in Jacobi Asset Management is a strategic move that aligns with Nukkleus Inc.'s vision of pioneering in the fintech industry. This investment underscores our commitment to leveraging innovative financial tools like blockchain and digital assets to transform and democratize the global financial landscape. We are not just keeping pace with the future of finance; we are actively shaping it to be more accessible, efficient, and inclusive," said Emil Assentato, CEO and Chairman of Nukkleus.

Martin Bednall, CEO of Jacobi Asset Management commented: "We are excited by the prospect of deepening our relationship with Nukkleus through this MOU, supporting the growth of Jacobi. This step symbolizes our mutual commitment to innovation in the fintech sector. The potential increase in Nukkleus' stake in Jacobi marks a significant milestone towards collaborative development and the advancement of regulated financial solutions in the market."

About Nukkleus Inc.:
Nukkleus Inc. (NASDAQ: NUKK) is a dynamic fintech aggregator dedicated to revolutionizing the financial services industry. Through strategic acquisitions and technology development, Nukkleus is creating a comprehensive ecosystem that addresses the evolving needs of modern finance. As 'A Gateway to the Future of Finance', Nukkleus is committed to driving growth, fostering innovation, and setting new standards for efficiency, security, and inclusivity in the financial world. For more information about Nukkleus please visit: https://www.nukk.com/.

Financial Products and Services Disclaimer:
Investment in digital assets involves risks, including the lack of regulation and customer protections typical in other financial markets, and is subject to a changing regulatory environment. These assets may lack legal tender status and are not covered by deposit protection insurance. Past performance is not indicative of future results. Local laws and regulations may restrict your ability to transact with us, and some services may not be available in your jurisdiction (e.g., Jacobi Asset Management's fund in the United States, Digital RFQ's licensing). For detailed information on Nukkleus' offerings and regulatory compliance, visit our EDGAR profile: https://www.sec.gov/edgar/browse/?CIK=1592782.

Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements as defined under U.S. securities laws. These statements, identified by words such as "will," "believe," "anticipate," “contemplate,” "expect," "estimate," "intend," "plan," or their negatives or variations of these words, or similar expressions, are not guarantees of future performance and are subject to risks, uncertainties, and assumptions. Actual results may differ materially due to various factors, including our ability to benefit from the business combination, market competition, regulatory changes, and the risks inherent in our industry and operations. Forward-looking statements in this release are based on information available as of the release date and are subject to change. Except as required by law, we do not undertake to update these statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240116936611/en/

For further information please contact:

Nukkleus Investor Relations

IR@nukk.com

Source: Nukkleus

FAQ

What is the ticker symbol for Nukkleus Inc.?

The ticker symbol for Nukkleus Inc. is NUKK.

What is the MOU about?

The MOU outlines a framework for Nukkleus to negotiate the acquisition of an additional 16% stake in Jacobi Asset Management.

What is the significance of the potential acquisition?

The potential acquisition aligns with Nukkleus' vision and commitment to pioneering in the fintech industry, leveraging innovative financial tools like blockchain and digital assets to transform and democratize the global financial landscape.

What is the timeframe for the completion of the proposed acquisition?

The completion of the proposed acquisition will be subject to successful completion of diligence and the negotiation and execution of definitive agreements.