JFB Construction Holdings (NASDAQ:JFB) shares sank 35.2% on Tuesday after the company unveiled a proposed merger with AI-focused defense technology firm XTEND.
The all-stock deal assigns XTEND an implied valuation of about $1.5 billion, based on the share price used in a simultaneous private placement. Once completed, existing XTEND shareholders are expected to hold roughly 70% of the combined entity, while JFB investors would retain around 30%.
The transaction is designed to form an autonomous defense and security systems platform, pairing XTEND’s AI-powered robotic operating system with JFB’s U.S.-based operational and infrastructure capabilities. After the merger closes — anticipated in mid-2026 — the business plans to rebrand as XTEND AI Robotics and list on Nasdaq under the ticker “XTND.”
Strategic backers of the deal include Eric Trump, Unusual Machines (NYSE:UMAC), American Ventures, LLC, Protego Ventures, Aliya Capital, and Agostinelli Group.
XTEND develops systems that enable operators to remotely control fleets of air, land, and maritime drones for complex missions spanning defense, public safety, and private security. The company is headquartered in Tampa, Florida, where it also operates a production facility.
Aviv Shapira, CEO and Co-Founder of XTEND, pointed to rising demand for solutions that protect personnel in increasingly unstable global security conditions. JFB CEO Joseph F. Basile III described XTEND’s AI-based operating system as a scalable platform combining software, hardware, and mission execution capabilities.
The merger, unanimously approved by the boards of both companies, is expected to enhance U.S. manufacturing capacity and speed up delivery of products to customers across the United States, NATO member countries, and Asia.