MIAMI, Nov. 09, 2026 (GLOBE NEWSWIRE) — The Defiance Drone & Modern Warfare ETF (NYSE: JEDI) has held exposure to Shield AI, a privately held defense autonomy company, since August 2026, when it became the first U.S.-listed ETF to offer investors exposure to the company.* On November 5, Shield AI announced that it has agreed to acquire Echodyne Corp., a maker of compact radar systems for counter-drone and security applications, in a transaction valued at up to $5.3 billion, and that it is raising $2.5 billion in connection with the deal, including $1 billion of Series H equity at a $28.8 billion post-money valuation. That valuation is more than double the $12.7 billion post-money valuation Shield AI announced in March 2026.

Why JEDI Holds Both Public and Private Companies

Drone and modern warfare technology is still early. Autonomy software, uncrewed aircraft, counter-drone sensing, and AI-enabled targeting are being built, tested, and procured now, and the programs that will define the category will take years to play out. Many of the companies at the front of that build-out are young and privately held, and they are scaling in the private market: raising capital, winning production contracts, and combining with one another to add capabilities and customers that can change a company’s economics in a single transaction. Shield AI’s 2026 is an example. In March it announced a $2 billion raise at a $12.7 billion valuation and the Aechelon acquisition; in June the U.S. Air Force awarded it a production contract to implement Hivemind as mission autonomy software for the Collaborative Combat Aircraft program; and on November 5 it announced its largest acquisition and a $28.8 billion valuation. It remains a private company.

JEDI was built to hold both sides of that market. Its primary objective is to track the BITA Drone & Modern Warfare Select Index, the listed universe of drone and modern warfare companies, where prices move every day with elections, geopolitical events, budget cycles, and the ordinary noise of public markets. Its secondary objective, added by the July 27, 2026 prospectus supplement, allows the Adviser, with respect to up to 15% of the Fund’s net assets, to seek exposure to companies that would have qualified for the Index except that their securities are not publicly traded. Private holdings are fair valued under the Fund’s valuation procedures rather than priced by the market each day, and their progress tends to be marked at financing rounds, acquisitions, and listings. The two carry different risks, and private holdings are subject to the illiquidity and valuation risks described below. Together they give shareholders a single ticker that reaches both the listed names and the private companies still building the category.

  • Access. Private market exposure has traditionally been limited to institutional and accredited investors through vehicles with lock-ups and performance fees. The ETF structure makes this exposure available to all investors through a single ticker.
  • Discipline. Private company exposure, together with all other illiquid investments, is limited to no more than 15% of the Fund’s net assets, consistent with SEC liquidity risk management rules for open-end funds. The Adviser does not currently expect aggregate private holdings to exceed approximately 5% of net assets at the time of purchase.
  • Transparency. The SPV interest appears in the Fund’s daily holdings file. Investors can see the position and its fair value, rather than waiting for a quarterly report.

The Transaction

  • Echodyne acquisition. Shield AI agreed to acquire Kirkland, Washington-based Echodyne, whose compact radars detect and track drones and are deployed in counter-drone and security systems in more than 40 countries. The price is $4.8 billion in cash and equity at closing, plus up to $500 million contingent on Echodyne meeting certain milestones. The deal is expected to close in early 2027, subject to regulatory approvals. Echodyne’s investors, including Madrona Venture Group, are expected to become Shield AI shareholders.
  • Financing and valuation. To fund the acquisition, Shield AI is raising $2.5 billion: $1 billion of Series H equity at a $28.8 billion post-money valuation, co-led by Disruptive and Innovation X Capital; a $1 billion structured equity investment from funds managed by Blackstone; and $500 million of debt financing led by JPMorgan Chase. In March 2026, Shield AI announced a $2 billion raise at a $12.7 billion post-money valuation, led by Advent International with participation from the Strategic Investment Group of JPMorganChase’s Security and Resiliency Initiative and funds managed by Blackstone.
  • Scale and scope. The acquisition is Shield AI’s fifth and its largest, following the June 2026 purchase of simulation company Aechelon Technology. Shield AI CEO Gary Steele said the deal accelerates the company’s multi-mission capabilities, opens access to a rapidly expanding counter-drone industry, and diversifies its revenue, and he described Echodyne as Shield AI’s first step into dual-use hardware that can also be sold to customers outside the military, such as public safety and aviation.

Why It Matters

“This is exactly why we built JEDI the way we did,” said Sylvia Jablonski, Chief Investment Officer of Defiance ETFs. “Drones and autonomy are still early in the arc of modern warfare, and the companies defining the category are young, private, and moving quickly. Shield AI just agreed to its largest acquisition and is raising capital at more than double the valuation it carried in March, and it is still a private company. JEDI shareholders have had exposure to it through a single ticker since August.”

“The listed names in the Fund reprice every day on elections, geopolitics, and budget headlines. The private companies mark their progress in financings and deals like this one. Holding both is the point. We said in August that a company not having listed should not be the reason our shareholders miss it. Three months later, that is the whole story.”

How the Exposure Is Held

The Fund obtains its Shield AI exposure indirectly. The Fund holds an interest in a single-asset special purpose vehicle (SPV) sponsored by an unaffiliated third party, and that SPV holds the Shield AI securities. The Fund does not hold Shield AI shares directly, and shareholders do not hold Shield AI shares. The Fund participates as a passive investor and has no role in Shield AI’s acquisition or financing. As of November 6, 2026, the SPV interest represented approximately 7.0% of the Fund’s net assets.

The SPV interest is treated as an illiquid investment under Rule 22e-4 under the Investment Company Act of 1940, is carried at fair value in accordance with procedures adopted pursuant to Rule 2a-5, and appears in the Fund’s daily holdings file alongside every other position. Fair value is determined under those procedures, which take into account observable events such as announced financings, acquisitions, and secondary market transactions, and the value at which the investment is ultimately realized may differ, potentially materially, from the most recent fair value determination.

JEDI’s primary investment objective remains to seek to track the total return performance, before fees and expenses, of the BITA Drone & Modern Warfare Select Index, and under normal circumstances the Fund invests at least 80% of its net assets in drone and modern warfare companies. The Fund continues to trade on NYSE under the ticker JEDI, publishes full holdings daily, and shares remain fully tradable intraday. Additional information regarding the Fund’s investment objectives, principal investment strategies, and associated risks is available in the Fund’s prospectus, as supplemented, at www.defianceetfs.com.

About Defiance ETFs

Defiance is a leader in first-mover thematic ETFs designed to provide exposure to the emerging technology sectors defining the future.

We build ETFs around areas that are moving beyond themes and becoming distinct investable categories, from quantum computing and AI infrastructure to modern warfare and other emerging sectors reshaping global markets.

Our approach is built around purity of exposure: identifying these categories early and creating ETFs that give investors targeted access.

* As of August 7, 2026, based on a review of SEC EDGAR filings, publicly available ETF issuer holdings disclosures, and U.S. and non-U.S. exchange listings, Defiance ETFs has identified no other exchange-traded fund that holds or has held securities of Shield AI, Inc., a privately held defense technology company, and accordingly believes the Defiance Drone & Modern Warfare ETF (NYSE: JEDI) is the first ETF to hold Shield AI.

IMPORTANT DISCLOSURES

Shield AI and Echodyne are not affiliated with, and do not sponsor, endorse, or promote, Defiance ETFs or the Fund. References to Shield AI and Echodyne are not a recommendation to buy or sell any security. Information regarding Shield AI’s acquisition of Echodyne and its financing is drawn from Shield AI’s public statements and press reports; Defiance ETFs has not independently verified it, and the transaction is subject to closing conditions and may not be completed on the terms described or at all. Fund holdings are subject to change and should not be considered investment advice.

The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company. Please read carefully before investing. A hard copy of the prospectuses can be requested by calling 833.333.9383.

Defiance ETFs LLC is the Fund’s investment adviser. The Fund’s sub-adviser is Penserra Capital Management LLC.

Investing involves risk. Principal loss is possible. As an ETF, the Fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. A portfolio concentrated in a single industry or country may be subject to a higher degree of risk.

Private Company / Privately Offered Securities Risk: Securities of private companies are not traded on an exchange and are typically issued without registration under the Securities Act of 1933. Such investments are subject to significant risks, including illiquidity risk, valuation risk, limited disclosure and lack of certain regulatory protections available to investors in publicly traded securities, exit strategy risk, and the risk of total loss. Private companies may have limited operating histories, unproven business models, and limited access to capital.

Investment Selection Risk (Private Sleeve): The Fund’s investments in privately issued securities are selected by the Adviser in its discretion and are not selected by reference to the Index. Those selection decisions may underperform the Index, other relevant benchmarks, or alternative investments the Adviser could have selected.

Sponsor Dependence Risk: The Fund depends on the SPV sponsor for administration of the SPV, transmission of information rights, the conduct of the SPV’s relationship with the underlying issuer, and implementation of any liquidity event. The SPV sponsor may have interests that diverge from those of the Fund.

Liquidity Risk: The Fund’s SPV interest is not traded on any public market, is not redeemable on demand at the option of the Fund, and may be transferred only with the consent of the SPV sponsor. The Fund’s ability to monetize the investment generally depends on the occurrence of a qualifying liquidity event at the underlying issuer. There is no assurance that any such liquidity event will occur within any particular time frame, on any particular terms, or at all.

Illiquid Investments Risk: The Fund may invest up to 15% of its net assets in illiquid investments. Illiquid investments may be difficult or impossible to sell at the time or price desired, may be sold at a substantial discount to carrying value, and may adversely affect the Fund’s ability to meet redemption requests.

Valuation Risk: Private company securities are fair valued in accordance with procedures adopted pursuant to Rule 2a-5 under the Investment Company Act of 1940. Fair valuations involve subjective judgments, and the value at which an investment is ultimately realized may differ, potentially materially, from the most recent fair value determination.

Premium/Discount Risk: The Fund’s SPV interest does not have an observable market price during the trading day and is reflected in the Fund’s daily net asset value at fair value. As a result, Fund shares may trade at a premium or discount to net asset value to a greater extent, and with greater volatility, than has historically been the case for the Fund.

Tracking Error / Index Divergence Risk: Because the Fund holds an investment that is not a component of the Index, the Fund’s performance is expected to diverge from the performance of the Index. The magnitude of this divergence may be material.

Concentration Risk: A portfolio concentrated in a single industry or country may be subject to a higher degree of risk than a more diversified portfolio.

Foreign Securities Risk: Investments in foreign securities involve certain risks including risk of loss due to foreign currency fluctuations or to political or economic instability. This risk is magnified in emerging markets.

Small/Mid-Cap Risk: Small and mid-cap companies are subject to greater and more unpredictable price changes than securities of large-cap companies.

Aerospace and Defense Companies Risk: Aerospace and defense companies rely heavily on government demand and contracts, making them sensitive to regulation, budget changes, and spending policies that can significantly affect industry performance.

Drone Companies Risk: Drone companies face risks from changing business cycles, rapid technological change, and government regulation, and may have limited product lines or financial resources. Securities of smaller drone companies tend to be more volatile than those of companies that do not rely heavily on technology.

Non-Diversification Risk: The Fund may invest a larger portion of its assets in fewer issuers than a diversified fund, increasing exposure to the risks of individual companies.

New Fund Risk: The Fund is a recently organized investment company with limited operating history, so prospective investors have a limited track record on which to base their investment decisions.

Effective April 30, 2026, the BITA Drone & Modern Warfare Select Index methodology was updated to expand the list of eligible capability areas, change constituent weighting to a liquidity-momentum factor, and permit between-rebalance additions of high-exposure IPOs and companies pivoting to modern warfare technology. Performance shown for periods prior to April 30, 2026 reflects the Index’s prior methodology and may not be representative of results under the current methodology.

The ‘BITA Drone & Modern Warfare Select Index’ is the exclusive property of BITA GmbH. BITA® is a trademark of BITA GmbH and has been licensed for use for certain purposes by Defiance ETFs LLC. Products based on the BITA Drone & Modern Warfare Select Index are not sponsored, endorsed, sold or promoted by BITA GmbH, and BITA GmbH makes no representation regarding the advisability of trading in such product(s). It is not possible to invest directly in an index.

Diversification does not ensure a profit nor protect against loss in a declining market.

Commissions may be charged on trades.

Distributed by Foreside Fund Services, LLC.

Media Contact:

Brenda Hentschel
bhentschel@gregoryagency.com 
201.705.3758

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/469e5e3b-5b24-4ad1-9791-a8c25eb976d8


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