Shares of Aureus Greenway Holdings (NASDAQ:AUGS) climbed 55% after reports that the company will complete a reverse merger with Powerus, a drone manufacturer that has received backing from President Trump’s sons.
According to the report, Eric Trump and Donald Trump Jr. are supporting Powerus through their investment vehicle American Ventures. The transaction is structured as a reverse merger that is expected to result in Powerus trading on the Nasdaq stock exchange within the coming months.
Powerus is based in West Palm Beach, Florida, and was established last year. Over the past six months the company has completed three acquisitions and markets both aerial and maritime drone systems. Company statements cited in the report indicate Powerus is aiming to scale production to more than 10,000 drones per month - a rate described as exceeding the production levels of most U.S. drone manufacturers.
Investors and participants named in the transaction include American Ventures; Unusual Machines, where Donald Trump Jr. is listed as a shareholder and a member of the advisory board; and the Korea Corporate Governance Improvement Fund, which is reported to have invested $50 million. The transaction also involves Dominari Securities, an investment bank backed by the Trump brothers.
The proposed merger arrives as the Pentagon advances its Drone Dominance initiative, which the report says aims to spend $1.1 billion to procure hundreds of thousands of U.S. systems by 2027. The Trump administration's ban on new Chinese drones in the U.S. is cited as creating market opportunities for domestic drone manufacturers.
Powerus CEO Andrew Fox is quoted as saying the reverse merger would grant the company access to public capital markets to support expanded manufacturing capacity and to finance further acquisitions.
Aureus Greenway Holdings is described as a holding company for golf courses in Florida.
Key points
- Aureus Greenway stock surged 55% on news it will merge with Powerus, enabling the drone maker to list on Nasdaq.
- Powerus, founded last year in West Palm Beach, has acquired three companies in six months and sells aerial and maritime drones while targeting production above 10,000 units per month.
- Named investors include American Ventures, Unusual Machines, the Korea Corporate Governance Improvement Fund ($50 million), and Dominari Securities; the deal aligns with Pentagon procurement plans and U.S. restrictions on new Chinese drones.
Sectors impacted - defense procurement, aerospace manufacturing, capital markets tied to Nasdaq listings.
Risks and uncertainties
- Timing and completion risk - the reverse merger is expected to lead to a Nasdaq listing in the coming months, but the timeline is not guaranteed.
- Execution risk on production targets - Powerus' goal of more than 10,000 drones per month represents an ambitious scaling target relative to stated U.S. manufacturer output.
- Dependence on policy-driven demand - opportunities cited stem in part from the Pentagon's Drone Dominance initiative and a ban on new Chinese drones in the U.S.; changes in procurement or policy could affect demand.
Note: The article reports the transaction details and investor participation as described above. Where the report notes company aims and intentions, those are presented as stated by the parties involved.