Nukkleus Stock Slides 20% Today: What’s Sparking The Drop?

Nukkleus (NUKK) became the top trending ticker on Stocktwits on Friday after its shares fell nearly 20% in afternoon trading following the announcement that it had taken the majority ownership in the sponsor of a newly formed special purpose acquisition company (SPAC) named SC II Acquisition Corp.

SC II filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission on Thursday, stating that it intends to raise $150 million through the sale of its units. Each unit comprises a Class A ordinary share and one right to receive a fifth of a Class A ordinary share, upon the consummation of an initial business combination, the company stated in its filing.

Nukkleus added that SC II intends to list its units to be issued on the Nasdaq Global Market under the symbol “SCIIU”.

While SC II has been formed with the purpose of effecting a merger, business combination, share or asset acquisition, the company stated that it has not selected any business combination target yet.

Retail sentiment on Nukkleus remained unchanged in the ‘bullish’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

Nukkleus said its Chief Executive Officer, Menachem Shalom, is expected to serve as the CEO of SC II. The company added that SC II also expects to grant the underwriters an option to purchase up to an additional $22.5 million of units in the proposed IPO. 

The company noted, however, that there was no assurance that the public filing of a registration statement on Form S-1 would result in any transaction or other action by SC II, and there was no assurance of the final terms of such IPO.

Shares of Nukkleus have fallen by over 71% this year and gained 392% in the last 12 months.

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