Nuburu expands partnership with Tekne

Nuburu (BURU) announced a significant advancement in its strategic partnership with Tekne, following the execution of an industrial and commercial Network Contract through Nuburu’s defense subsidiary Nuburu Defense, a EUR 13M shareholder convertible loan, and the completion of an initial 2.9% equity investment in Tekne. These agreements represent the full operational and economic activation of the strategic framework previously disclosed in November and December 2025 and are expected to generate revenues for Nuburu beginning in FY26, while positioning the company toward its long-term objective of acquiring a controlling interest in Tekne, subject to applicable regulatory approvals. The executed network contract establishes a structured, multi-jurisdictional industrial alliance covering the Americas, NATO countries, MENA, APAC, and Italy, and governs the joint execution of ad-hoc defense and dual-use projects with defined economics and revenue-sharing mechanisms. The revenue streams generated under the network contract are independent of Nuburu’s current equity ownership in Tekne and are instead linked to project execution, financial and operational support, go-to-market activities, and performance-based participation. The network contract already identifies initial projects exceeding EUR 10M in contracted value, with deliveries and commercial execution scheduled throughout 2026, supporting Nuburu’s transition toward recurring and program-based defense revenues. In parallel with the execution of the Network Contract, Nuburu has become a direct shareholder of Tekne, acquiring 2.9% of Tekne’s share capital as part of a broader strategic alignment between the two industrial partners. This equity participation was structured through the issuance of a subordinated, interest-free convertible instrument to Tekne’s current majority shareholder, rather than a cash payment. The conversion of such instrument, if and when permitted, is based on a fixed conversion price for Nuburu common stock of 25c per share. Contextually with this equity acquisition, Nuburu also provided EUR 13M to Tekne in the form of a shareholder convertible loan, as previously disclosed in the company’s SEC filings, to support Tekne’s industrial development and the execution of defense programs under the strategic alliance. Upon conversion of the shareholder convertible loan, subject to Italian Government Golden Power approvals, Nuburu’s ownership in Tekne would increase to approximately 27.9%. The transaction reflects an agreed equity valuation of Tekne of approximately $60M, implying a consideration of approximately $1.74M for the 2.9% equity interest. Together, the initial equity investment and the shareholder convertible loan establish the foundational ownership and operating framework to pursue a path toward a controlling interest in Tekne, consistent with the strategic objectives originally envisaged by the parties, while remaining subject to Regulatory Approvals and the potential involvement in Tekne of additional strategic and industrial partners.