Brilliant Acquisition Faces Potential Liability Following Fractional Share Issue

Brilliant Acquisition (OTCMKTS:BRLIU) recently filed a Form 8-K with the Securities and Exchange Commission. In the report dated November 25, 2024, Nukkleus Inc., the exact name of the registrant, disclosed that a reverse stock split was completed on October 24, 2024.

As a result of this reverse stock split, the Company committed not to issue fractional shares. However, upon receiving notice on October 31, 2024, from DTCC on behalf of brokerage firms holding shares in “street name,” it was indicated that 182,004 shares of common stock needed to be issued to round up shares.

Discrepancies arose as the Company found the number of shares requested excessive when compared to historical shareholder data. Citing similar issues in the past for companies undergoing reverse stock splits, Brilliant Acquisition has initiated an investigation into the calculation process.

During this inquiry period, the Company has decided to refrain from issuing any shares to fulfill the fractional share request. However, if circumstances dictate that shares should have been issued, Brilliant Acquisition might face potential liability for failing to satisfy the request.

In compliance with the disclosure requirements of the 8-K filing, Brilliant Acquisition emphasized its commitment to resolving the matter diligently. The Company’s Chief Executive Officer, Menachem Shalom, duly signed off on the report on November 25, 2024.

This development underscores the importance of accuracy and transparency in handling corporate actions, as fractional share issues can have legal and financial ramifications for companies involved. Investors will likely monitor how Brilliant Acquisition addresses this challenge moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Brilliant Acquisition’s 8K filing here.

Brilliant Acquisition Company Profile

Brilliant Acquisition Corporation does not have significant operations. The company intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses. Brilliant Acquisition Corporation was incorporated in 2019 and is based in Shanghai, China.