T3 Defense Acquires Majority Stake in Project35, Accelerating Leadership in the Drone and Counter-UAV Market
Rhea-AI Summary
T3 Defense (Nasdaq: DFNS) acquired a 60% stake in Israel-based Project35, a developer of drones, aerial interceptors and counter‑UAV systems serving Tier‑1 defense customers including IAI, ELTA, Rafael, Elbit and the Israel Ministry of Defense.
The deal adds field‑proven unmanned platforms and an autonomous AI‑guided interceptor that recently passed initial live‑fire trials. Project35 reported unaudited revenues of about US$1.4 million in 2025 and expects roughly US$2.4 million in 2026. Consideration includes 21,059,871 DFNS shares plus a US$1.25 million, 12% promissory note. T3 Defense also plans to invest US$2.5 million into Project35 over 12 months to support commercialization and scaling, while Project35’s founding leadership team remains in place.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Positive
- Acquires 60% of Project35, adding drones, autonomous interceptor and counter‑UAV systems
- Project35 revenue growth: unaudited US$1.4m in 2025 to expected US$2.4m in 2026
- Tier‑1 customer access via relationships with IAI, ELTA, Rafael, Elbit and Israel Ministry of Defense
- US$2.5m planned investment to accelerate commercialization and production scaling over 12 months
Negative
- 21,059,871 new DFNS shares issued as consideration, creating potential shareholder dilution
- US$1.25m promissory note at 12% adds an interest‑bearing liability due around one year after closing
- Additional US$2.5m capital commitment to Project35 increases near‑term cash outflows
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 30 | Defense orders update | Positive | -1.4% | Subsidiary Positech reporting $4.9M in heavy-duty rotator orders. |
| Jun 24 | Conference presentation | Neutral | -7.6% | CEO scheduled to present at Maxim Group defense tech conference. |
| Jun 16 | Product/service launch | Positive | +4.1% | Nimbus launching live red-team drone threat emulation service. |
| Jun 08 | Conference attendance | Neutral | -3.5% | Announcement of attendance at Eurosatory 2026 defense exhibition. |
| Jun 01 | Contract fulfillment | Positive | -15.6% | Rimon advancing delivery of counter‑UAS launcher platforms for Elbit. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent defense-contract and conference headlines often saw weak or negative next-day moves, even on operationally positive updates.
Regulatory & Risk Context
Short interest appears elevated, suggesting potential for sharper moves and some squeeze risk if positioning unwinds.
Key Terms
counter-uav technical
as9100 technical
ndaa regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Acquisition of a
NEW YORK and NETANYA, Israel, July 10, 2026 (GLOBE NEWSWIRE) -- T3 Defense Inc. (Nasdaq: DFNS) (“T3 Defense”), a defense company that acquires and operates mission-critical defense businesses, today announced the acquisition of a
Project35 already holds a position as a trusted supplier to Israel's leading defense companies, including Israel Aerospace Industries (IAI), ELTA Systems, Rafael Advanced Defense Systems, and Elbit Systems, as well as the Israel Ministry of Defense.
These established relationships provide immediate commercial pathways for T3 Defense to scale the newly acquired platforms and technologies. Thus, the acquisition is expected to strengthen T3 Defense's access to active defense procurement channels and expand its opportunity set across drone, counter-UAV, and related homeland security programs.
Project35's unmanned aerial platforms are field-proven and already in active operational use. Over the past three years, the company has focused on developing an autonomous, aerial interceptor designed to neutralize hostile UAVs within seconds of detection using a proprietary AI tracking & guidance system. The interceptor has recently completed a series of successful initial live-fire field trials, validating its performance and accuracy for high-intensity conflict environments.
Project35 expects revenue of approximately US
The acquisition brings a comprehensive unmanned and counter-UAV ecosystem into the T3 Defense portfolio. Project35's aerial platforms range from heavy-lift multirotor cargo drones and long-endurance fixed-wing VTOL aircraft for intelligence, surveillance, and reconnaissance to high-speed, AI-guided tactical FPV systems. The company holds AS9100 aviation quality certification, and is engineered to Western supply-chain standards, including Blue UAS and NDAA compliance.
The operational continuity and strategic vision of Project35 will remain anchored by its original founding team. Chief Executive Officer Gandi Kokton, a mechanical and safety engineer who previously designed aircraft and UAVs at IAI and Elbit Systems, will continue to lead business development and corporate execution. Co-founder and Director Noa Bomshtein, an industrial and information systems engineer with extensive experience directing complex defense programs at Rafael, will continue to oversee administrative, procurement, and customer operations. Co-founder Dudu Farfara, an aeronautical engineer and chemist who served in the Israeli Navy and in the technology units of the Ministry of Defense, will continue to lead the company's drone technology and product innovation. The founders are supported by a multidisciplinary engineering group with deep expertise in RF, signal processing, optical guidance, and systems integration.
“Two forces are reshaping the modern battlefield: the rapid spread of unmanned aerial systems, and the urgent need to intercept them before they reach their targets,” said Menny Shalom, Chief Executive Officer of T3 Defense. “The acquisition of Project35 positions T3 Defense on both sides of that equation. 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.”
“We have built the solutions, the team, and the deep engineering experience needed to counter today's aerial threats, drawing on backgrounds across Israel's leading defense organizations,” said Gandi Kokton, Chief Executive Officer of Project35. “The one element we were missing was the capital and platform to scale, and joining the T3 Defense ecosystem solves exactly that. It allows us to bring our full portfolio to market and put it to work against the challenges defense forces face today.”
Transaction Details
Under the terms of the transaction, T3 Defense acquired its stake in Project35 for 21,059,871 shares of T3 Defense common stock and a
About Project35
Project35 designs, manufactures, and integrates advanced unmanned aerial systems for defense, government, and industrial clients in Israel and around the world. Its ecosystem is engineered for tactical superiority and spans multirotor cargo platforms, long-endurance fixed-wing VTOL aircraft, high-speed FPV systems, and a counter-UAV suite that includes an autonomous aerial interceptor. The company specializes in composite materials technologies and airborne system structures, holds AS9100 aviation quality certification, and builds to Western supply-chain standards, including Blue UAS and NDAA compliance. For more information, visit project35ltd.com.
About T3 Defense Inc.
T3 Defense Inc. (Nasdaq: DFNS) is a defense company that acquires and operates mission-critical defense businesses involved in national security programs. It focuses on manufacturers with strong customer relationships and solid order backlogs, often capacity- and resource-constrained, in specialized areas such as drones and autonomous vehicles, counter-drone systems, advanced manufacturing, tactical robotics, and AI software and system integration. Through disciplined acquisitions, centralized capital and strategy, and decentralized day-to-day operations, T3 Defense aims to strengthen essential defense capabilities and build long-term value. For more information, visit www.t3dfns.com.
Forward Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements in this press release include statements regarding the anticipated benefits of the acquisition of Project35, T3 Defense's acquisition strategy, the expected revenues and financial performance of Project35, and the expected contribution of Project35's platforms and capabilities to the T3 Defense portfolio. These statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including risks associated with integrating and operating acquired businesses, changes in defense spending and procurement cycles, geopolitical developments, and other risks described in T3 Defense's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made. T3 Defense Inc. undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law.
Contact us:
T3 Defense Inc.
575 5th Avenue
New York, NY 10017
contact@t3dfns.com
www.t3dfns.com
Project35
Gandi Kokton, CEO
office@project35.co.il
project35ltd.com
Investor Relations
The Equity Group Inc.
Lena Cati
lena.cati@theequitygroup.com
+1 212 836-9611
Val Ferraro
val.ferraro@theequitygroup.com
+1 212 836-9612
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/08b0b849-2eb4-46eb-a3a2-a0ffe4172ac0
