13 July 2026 | News
Image Courtesy: Public Domain
T3 Defense Inc. (Nasdaq: DFNS) (“T3 Defense”), a defense company that acquires and operates mission-critical defense businesses, announced the acquisition of a 60% stake in Project35, a leading Israeli developer and manufacturer of drones, aerial interceptors and counter-UAV systems for Tier-1 defense customers in Israel and around the world. The acquisition launches T3 Defense into the center of the fast-expanding drone and counter-UAV (C-UAV) armament market, adding field-proven platforms and a new class of autonomous interceptor to its portfolio. The transaction is consistent with T3 Defense's strategy of building a focused portfolio of mission-critical defense technologies aligned with evolving battlefield and homeland security requirements.
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$2.4 million for the 2026 fiscal year, following unaudited revenues of approximately US$1.4 million for the 2025 fiscal year.
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 12% promissory note due one day before the anniversary date in the principal amount of $1,250,000. Following closing, T3 Defense expects to work with Project35's management team to support commercialization, production scaling, and expansion into additional customer programs, in addition to investing $2.5 million directly into the company's operations over the next 12 months.
