Nuburu ( BURU ), Inc. shares are trading higher after the company disclosed a Strategic Framework Agreement with a newly formed subsidiary, Nuburu Defense LLC, and Maddox Defense Incorporated.

The company plans to form a new joint venture (JV) that will develop, manufacture, and deploy advanced drone systems for both military and commercial applications, fully compliant with regulations.

Agreement Terms

Nuburu Defense expects to contribute up to $10 million in capital.

Meanwhile, Maddox Defense will provide eligible assets, intellectual property, and personnel, all formally appraised under Italian law.

Equity ownership will be allocated based on assessed contributions, with Nuburu Defense retaining a controlling interest.

JV Details

The joint venture will create and deploy flexible military drones for NATO and allied partners, drawing on the combined technical and operational strengths of Nuburu Defense and Maddox Defense.

In addition to defense initiatives, the JV's 2026–2028 strategy targets commercial and civil-sector drone applications, leveraging NUBURU's ( BURU ) blue-laser technology, the Orbit operational-resilience system, and Tekne's defense-mobility solutions.

The venture projects roughly $100 million in annual revenue by 2028, with total revenue of about $165 million over the 2026–2028 period.

Under the Strategic Framework Agreement, the parties plan to finalize a Joint Venture Agreement by Dec. 15, 2025, establishing a Europe-based hub under Italian law.

The JV will integrate complementary technologies for NATO-approved programs while ensuring all U.S.-origin technical data remains under ITAR and EAR control.

Notably, the NATO UAV defense market is estimated to range between $7 billion and $10.3 billion annually.

Recent Key Events

The industrial blue laser developer announced this month that Nuburu Defense will acquire Orbit S.r.l., an Italian software firm specializing in operational resilience and crisis management for mission-critical operations.

BURU Price Action: Nuburu ( BURU ) shares were up 25.28% at $0.36 during premarket trading on Wednesday, according to Benzinga Pro data.

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