Nuburu, Inc. (BURU) shares fell 3.48% to $0.0600 on August 6, retreating from intraday highs near $0.068, after the Italian government approved the company's proposed acquisition of a 70% controlling stake in Tekne. The decision removes the transaction's primary regulatory hurdle and moves the deal toward funding, governance, and final closing steps. The stock's decline despite the regulatory clearance reflects the remaining execution risk: Nuburu, originally known for its high-power blue laser technology used in industrial manufacturing and 3D printing, is undertaking a transformative pivot into defense manufacturing through a multi-step cross-border transaction that still requires capital measures, governance restructuring, and final closing.

Italian Golden Power Approval Removes Key Regulatory Barrier

The Italian Government granted approval under its Golden Power framework, which governs transactions involving businesses in strategic national sectors. The review encompassed defense, security, ownership controls, sensitive technologies, and the proposed transfer of majority control. Italy's Golden Power regime has taken on heightened significance as European nations have strengthened investment screening mechanisms for defense and dual-use technologies, particularly amid increased focus on supply chain security within NATO and EU frameworks.

Nuburu submitted its formal notification on June 5, following the signing of the investment agreement on May 26. The agreement allows the parties 30 calendar days to complete closing actions after the approval condition is confirmed.

Several steps remain before completion. Nuburu must execute corporate resolutions, capital measures, share transfers, governance appointments, and required documentation. The company is also obligated to comply with every commitment and condition stipulated in the Italian authorization.

Upon closing, Nuburu expects to consolidate Tekne's results under United States accounting standards and record the remaining 30% interest as a non-controlling stake. Final accounting treatment will depend on a completed acquisition assessment.

Tekne Brings Defense Manufacturing and Established Operations

Tekne operates engineering and manufacturing facilities in Ortona, Poggiofiorito, and Guastalla, Italy. The company employs approximately 180 people and develops military vehicles, electronic warfare systems, communications infrastructure, and security platforms. Its capabilities extend to counter-drone applications, tactical systems, defense mobility, and civil emergency solutions. These product lines align with growing European demand for counter-drone technology and electronic warfare capabilities, areas that have received increased procurement attention from NATO member states.

Tekne holds a signed order portfolio with roughly $108.7 million in normalized residual value, according to management materials. Delivery changes, validation processes, and potential cancellations could affect the final realized amount.

Nuburu also referenced a five-year production plan valued at approximately $648 million through 2030. The plan is designed to preserve Italian production capacity, strategic expertise, employment, technology controls, and defense-related intellectual property.

Nuburu intends to integrate Tekne's manufacturing base with its own photonics, software, and deployable production capabilities. The combined platform would pursue defense and security programs across Italy, Europe, and NATO markets.

Funding Structure and Capital Deployment

Nuburu has already supplied Tekne with approximately $23.7 million through shareholder loans. Under the agreement, a portion of that financing may convert during the planned capital increase, with final amounts subject to closing calculations, reconciliation, and the transaction's euro-denominated terms.

The broader transaction carries a pre-money valuation of approximately $59.7 million at the stated exchange rate. Nuburu plans a capital increase of about $34.1 million alongside a separate $6 million share purchase. These measures would raise Nuburu's ownership from its current 2.9% position to the targeted 70% controlling stake.

In July, Nuburu completed a $38 million public offering to fund its defense expansion. The company subsequently repaid approximately $16.75 million in principal obligations associated with earlier financing and acquisition notes. Remaining proceeds are allocated for Tekne support, working capital, transaction costs, and near-term integration requirements. Key milestones to monitor in the coming weeks include completion of the 30-day closing window, execution of the capital increase and share transfer mechanics, and any updates on integration progress or Tekne order backlog realization.