Nukkleus Inc. (NUKK), a software solutions provider in the FX trading industry, has recently taken significant steps toward expanding its operations, acquiring Match Financial Limited and forming strategic alliances with businesses focused on digital asset management, exchange-traded funds (ETFs), and digital asset custody. Through these developments, Nukkleus aims to enhance its foothold in the fast-growing digital assets market and position itself at the forefront of emerging financial technologies.
In fiscal year 2021, Nukkleus completed its acquisition of Match Financial Limited, a private limited company based in England and Wales. Match’s subsidiary, Digital RFQ Limited, is engaged in providing payment services from one fiat currency to another or to digital assets. This acquisition would allow Nukkleus to further capitalize on the growing demand for digital assets by providing integrated software solutions and services in the trading and payment sectors.
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Strategic Alliances in the Digital Asset Ecosystem
Aside from the acquisition, Nukkleus has formed strategic alliances with companies in the digital asset ecosystem. On December 15, 2021, the company entered into a Purchase and Sale Agreement with Jacobi Asset Management Holdings Limited, acquiring 5% of the issued and outstanding ordinary shares of Jacobi in consideration of 20,000,000 shares of Nukkleus common stock. Jacobi is a company focused on digital asset management and has received regulatory approval to launch the world’s first tier one Bitcoin ETF, making this alliance a move toward further digitizing Nukkleus’ operations.
Moreover, on March 17, 2022, Nukkleus entered into another Purchase and Sale Agreement with Digiclear Ltd., acquiring 5,400,000 of the issued and outstanding ordinary shares of Digiclear in consideration of 15,151,515 shares of Nukkleus common stock. Digiclear is a company developing a custody and settlement utility operating system, which strengthens Nukkleus’ commitment to providing digital asset-related services.
Financial Performance Amid COVID-19
Despite the global economic uncertainties brought about by the COVID-19 pandemic, Nukkleus has managed to maintain its operations without significant disruption. However, the company acknowledges that its business may be affected by the evolving factors surrounding the pandemic, including the duration and scope of the outbreak, government regulations, and potential changes in customer behavior or demand.
As of March 31, 2023, Nukkleus had cash of $246,650 and a working capital deficit of approximately $4,391,000. The company reported a net loss of around $1,940,000 and generated negative cash flow from operating activities of about $1,883,000 for the six months ended March 31, 2023. To ensure the continuation of its business, Nukkleus relies on its management’s ability to control expenses, secure necessary financing, and achieve profitable operations. In the event of unforeseen challenges in obtaining financing, TCM, a company wholly-owned by an entity that is majority-owned by Nukkleus CEO Emil Assentato, has committed to inject capital into Nukkleus to support its ongoing operations.
Thriving in the Digital Financial Landscape
With these strategic acquisitions and alliances, Nukkleus is positioning itself to thrive in the increasingly digital financial landscape. The company’s investments in companies focused on digital assets, ETFs, and digital asset custody services reflect its dedication to innovation and adaptability in the ever-evolving financial technology space.
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