Shares of JFB Construction Holdings (NASDAQ:JFB) plunged 35.2% on Tuesday after the real estate development firm announced a definitive agreement to merge with XTEND, a company focused on AI-driven defense and robotics technologies.
The proposed transaction is an all-stock deal that places an implied valuation on XTEND of about $1.5 billion, a figure derived from the per-share price used in a simultaneous private placement. Under the terms, existing XTEND investors would hold close to 70% of the combined company, while current JFB shareholders would own approximately 30%.
Management says the merged business will concentrate on autonomous defense and security systems by combining XTEND’s AI-based robotic operating system with JFB’s U.S. operations and infrastructure. Once the merger is finalized, the combined company plans to adopt the name XTEND AI Robotics and seek a Nasdaq listing under the ticker "XTND." The deal is expected to close in mid-2026.
Strategic investors participating in the transaction include Eric Trump, Unusual Machines (NYSE:UMAC), American Ventures, LLC, Protego Ventures, Aliya Capital, and Agostinelli Group.
XTEND’s product suite enables remote control of multiple unmanned platforms - air, ground, and maritime - for complex missions across defense, public safety, and private security use cases. The company operates its headquarters and a production facility in Tampa, Florida.
Aviv Shapira, XTEND’s CEO and Co-Founder, pointed to rising demand for systems that protect operators amid increasingly volatile security conditions worldwide. JFB’s chief executive, Joseph F. Basile III, described XTEND’s AI-driven operating system as a scalable platform that integrates software and hardware with mission execution capabilities.
The boards of both companies unanimously approved the transaction. Company statements say the merger will support expanded U.S. manufacturing capacity and speed delivery of products to clients in the United States, allied NATO nations, and markets in Asia.
Additional context and considerations
The announcement combined a strategic pivot for JFB, a firm historically identified with real estate development, and a rapid valuation and ownership shift tied to XTEND’s investor backing and private placement pricing. Market reaction was immediate and severe for JFB equity, reflecting investor reassessment of the company’s new direction and ownership dilution under an all-stock arrangement.