DivestmentApr 10, 2026, 12:57 PM
T3 Defense Subsidiary Water IO Sells AI Defense Tech Unit Zorronet to BiomX for 1.3M Shares and $1.25M Note
AI Summary
T3 Defense Inc.'s indirect subsidiary, Water IO Ltd., completed the sale of its wholly-owned AI defense technology subsidiary, Zorronet Ltd., to BiomX Inc. on April 10, 2026. The transaction involved BiomX issuing 1,300,000 shares of its common stock and a $1,250,000 non-convertible promissory note to Water IO. This divestiture allows Water IO, in which T3 Defense holds an approximately 67% equity interest, to streamline its portfolio. Zorronet specializes in AI-powered computer vision and autonomous surveillance systems, with operational deployments at Israel Defense Forces bases and engagements with major defense contractors like Elbit Systems Ltd.
Key Highlights
- Water IO Ltd., a subsidiary in which T3 Defense Inc. holds approximately a 67% equity interest, completed the sale of 100% of Zorronet Ltd.
- Zorronet, an Israeli AI defense technology company, was sold to BiomX Inc. (NYSE American: PHGE) on April 10, 2026.
- Consideration for the sale included 1,300,000 shares of BiomX common stock issued to Water IO.
- Water IO also received a non-convertible promissory note from BiomX in the principal amount of $1,250,000, bearing interest at the short-term applicable federal rate and maturing in three months.
- Zorronet's technology is operationally deployed at Israel Defense Forces (IDF) bases, military security operations centers, and critical national infrastructure sites.
- Zorronet has active engagements with Elbit Systems Ltd (TASE/Nasdaq: ESLT) and other preeminent Israeli defense prime contractors.