NUKK stock has surged over 3,500% in the past week alone, leaving investors to wonder, is NUKK stock about to continue surging higher?
Investors are comparing the unexpected climb from its $1.40 per share to an astounding $78 to HKD’s short squeeze when shares skyrocketed from $13 to $2,500.
NUKK stock, which is currently trading at $50 at the time of this writing, has come down significantly from its recent all time-high.
What’s sparked interest amongst activist investors is how much volume is being traded in Nukkleus Inc.(NASDAQ: NUKK).
The fintech company only has a 1.18 million float with volume surging to a whopping 225 million on Tuesday and Wednesday.
Thursday’s trading volume is still relatively high at 12.5 million compared to its average volume 3.4 million.
During HKD’s rise in price, the stock had giant but incremental surges before reaching more than $2,500 per share.
Will NUKK stock have a similar trajectory?
This is quite challenging to calculate since HKD’s price surge was extremely unprecedented.
And although NUKK’s price surge was also highly unprecedented, the risks are also very present as a sharp reversal has the potential to wipe out any investment at these levels.
So, why did NUKK stock go up?
According to the latest NUKK stock news and developments, the company revealed plans for a private placement totaling $10 million with a family office investor based in New York.
The firm will issue 1,666,666 units, each priced at $6.00, which was significantly above the market value at the time of the announcement according to Nasdaq regulations.
Each unit consists of one share of restricted common stock (or a pre-funded warrant) along with warrants for 1.5 shares that can be exercised at $6.00.
The funds raised from this placement will primarily be used to acquire Star 26 Capital Inc., which owns a 95% stake in RIMON, an Israeli company that supplies components for the Iron Dome missile defense system.
The private placement is anticipated to close on or around December 19, 2024, with Dawson James Securities serving as the Exclusive Placement Agent for the transaction.
This significant development explains why NUKK’s share price skyrocketed.
Whether the price continues to surge or not will depend on new developments and acquisition announcements from the company.
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