Tessera Defense and Homeland Security Inc. (NYSE:HLSQ) ("Tessera" or the "Company") today announced that it has amended its existing investment agreement for the purchase of an equity stake in M.E.A. Testing Systems Ltd. ("MEA", "Motomea"), an Israeli company that develops drone-related testing technology, from a 10% to 15% stake. As part of the original agreement, Tessera has secured an exclusive option to acquire the remaining interest in MEA held by its majority shareholder, Motomova Inc. (OTC:MTMV).

Motomea brings over a quarter-century of expertise to the field of electric motor and rotating-machine testing. The company provides testing solutions, including electric propulsion systems for drones, aircraft, robotics, and ground vehicles, to clients across the aerospace, automotive, energy, industrial, and transportation industries. Additionally, Motomea created and patented the industry's first load-free inertial dynamometer systems, enabling motor performance evaluations during acceleration and deceleration without requiring traditional external mechanical loads.

Under the transaction as amended, Tessera will acquire the 15% interest for $50,000 in cash and 130,000 shares of Tessera common stock, and agreed to issue an additional 65,000 shares, subject to NYSE American approval. Tessera also agreed to an advance to MEA with a convertible loan facility of up to $475,000 to fund working capital and MEA’s drone-related activities. The loan may, at Tessera’s option, be converted into additional equity in MEA, subject to compliance with and approval of NYSE American. Additionally, as part of the closing, Tessera is to receive an exclusive, perpetual, worldwide license for MEA’s technology and know-how.

The option, entitles Tessera to acquire Motomova’s remaining holdings in MEA at a price based on MEA’s audited results for fiscal year 2027.