T3 Defense Inc. (NASDAQ:DFNS) stock plunged Friday after the company announced it had acquired a 60% stake in Israeli drone and counter-UAV developer Project35, expanding its portfolio of mission-critical defense technologies.
Project35 counts Israel Aerospace Industries (IAI), ELTA Systems, Rafael Advanced Defense Systems, Elbit Systems and the Israel Ministry of Defense among its customers, according to the company.
T3 Defense Acquires Majority Stake in Project35
The company said Friday it acquired a 60% stake in Israeli drone and counter-UAV developer Project35 through 21,059,871 common shares and a $1.25 million promissory note carrying a 12% interest.
The deal expands T3 Defense’s portfolio with heavy-lift cargo drones, VTOL aircraft, AI-guided tactical FPV systems and an autonomous drone interceptor that recently completed successful live-fire trials.
Project35 expects about $2.4 million in fiscal 2026 revenue after generating approximately $1.4 million in unaudited revenue in 2025.
T3 Defense also plans to invest $2.5 million in Project35 over the next 12 months to support commercialization, production expansion and new customer programs. Project35’s founding management team will remain in place following the acquisition.
Chief Executive Officer Menny Shalom said the acquisition strengthens T3 Defense’s position in both unmanned aerial systems and counter-drone technologies.
“The acquisition of Project35 positions T3 Defense on both sides of that equation,” Shalom said. “Project35 brings operational, field-deployed platforms and a purpose-built autonomous interceptor validated in successful live-fire testing, giving us proven technology to address one of the defining threats of modern conflict.”
DFNS Price Action: T3 Defense shares were down 27.21% at $0.1065 at the time of publication on Friday, according to Benzinga Pro data.
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