The THEON INTERNATIONAL PLC (THEON) announces the launch of new strategic investments and partnerships under its THEON NEXT strategic program to create an integrated technology platform to help accelerate the development of advanced next-generation systems for the soldier of the future through targeted investment moves, technology partnerships and co-production initiatives.

Focusing on the development of innovative Digital and Augmented Reality (AR) solutions, the THEON NEXT program seeks to forge partnerships with leading technology providers to jointly shape the operational superiority framework of the future by leveraging advanced technologies in the complex operational domains of modern warfare.

In this context, THEON announces four major investments and strategic partnerships in the United States and Europe, marking a key milestone on its path to maintaining a leadership position in the field of portable electrode systems.

These agreements reinforce THEON’s long-term strategic commitment to advancing cutting-edge technologies in the field of defensive electrode systems, strengthening the company’s sustainability and supply chain, and promoting transatlantic cooperation in advanced defense technologies.

Having established its leadership position in night vision systems, THEON has successfully expanded into thermal and digital solutions through its new A.R.M.E.D. product family.

Consistently applying the strategic approach previously applied to traditional/analog night vision systems – prioritizing full vertical integration of the production chain and strategic commercial agreements – THEON is now moving aggressively into the fast-growing field of Digital and Augmented Reality (AR), which is based on three critical technologies:

Augmented and Virtual Reality software: the foundation for next-generation soldier systems, offering fuller operational awareness, more effective decision making and digital visualizations in real-world environments.

Micro-Displays:They are essential for next-generation visual augmentation systems, with a strategic focus on developing U.S.-European microLED technology.

At the same time, we are working with the European Union to develop a new generation of high-performance LED technology in the U.S. and Europe.
Small-Band Wireless Connectivity: Enables seamless, wireless interconnection of all soldier equipment with real-time data relay capability.

To successfully address these challenges, THEON announces four major initiatives and agreements that not only represent milestones on its technology roadmap, but also deepen U.S.-Europe industrial cooperation:

First, THEON invests a total of $15 million in Kopin Corporation (KOPIN, NASDAQ: KOPN), a US-based company specializing in micro displays and defense subsystems, with operations in the US, Scotland and the UK. The investment includes a $7 million interest-bearing loan convertible into preferred shares of KOPIN at a share price of $3 to $4.5 at THEON’s option, and an $8 million equity raise to acquire a 49% stake in KOPIN’s Scottish subsidiary.

This company will form the basis for a new European joint venture that will act as a global (outside the US) channel for the production and distribution of systems with augmented reality capabilities to be jointly developed by KOPIN and THEON, as well as for the production of microLED displays.

The entire $15 million investment in KOPIN is aimed at co-development of products and reflects THEON’s belief that the already extensive R&D investments made by KOPIN have created the necessary foundation for a partnership that can yield immediate economic benefits from products with embedded augmented reality (AR) capabilities.

This strategic partnership will also include the transfer of the related industrial and development activities of THEON’s US subsidiary (T-Industries) to KOPIN’s facility in Reston, Virginia, which will become the US manufacturing center for THEON’s products with augmented reality capabilities and for future digital electro-optical products.

As part of T-Industries’ normal course of business, THEON will invest, over the next five years, $8 million to support its U.S. operations, as well as new joint development efforts with KOPIN. This new partnership will not affect THEON’s two existing partnerships in night vision systems.

Second, THEON has signed a renewable supply agreement with a minimum term of two years with eMagin, a US-based manufacturer of OLED micro displays and virtual imaging technologies. eMagin specializes in high-resolution displays for applications such as military aviation, night vision, AR/VR as well as other near-eye imaging applications. eMagin is a strategic supplier to THEON, providing most OLED displays used in THEON products, including A.R.M.E.D. products, with the IRIS-C being a leading example.

Third, THEON has entered into a strategic partnership with ALEREON, a US-based leader in Ultra-Wide-Band (UWB) wireless communications technology. ALEREON provides, battle-tested, UWB wireless solutions that are the standard communication protocol for the US Army’s portable equipment, enabling interference-free wireless communication between devices such as THEON’s THERMIS, THEA, IRIS-C and ORION.

Unlike conventional protocols such as Wi-Fi or Bluetooth, ALEREON’s UWB technology offers unparalleled security, low latency and resilience in battlefield conditions. Through this partnership, THEON will fully integrate UWB technology into the A.R.M.E.D. product line, will produce it in Greece and will promote this unique solution in Europe and the Middle East as ALEREON’s main partner in these regions.

Finally, THEON announces a strategic minority investment in Varjo Technologies Oy (VARJO), a Finnish high-tech company specializing in Virtual Reality (VR) and Mixed Reality (MR) headsets and applications, deepening THEON’s penetration in the European innovation ecosystem.

Founded in 2016, VARJO supplies the world’s most important aerospace and defense companies, offering advanced military-grade VR/MR technology for training and simulation.

The strategic partnership between THEON and VARJO will combine THEON’s expertise with VARJO’s advanced virtual and mixed reality equipment and software, with the companies having agreed to work closely together on multiple product and business initiatives.

The agreement provides for an investment in VARJO through a €5 million convertible loan, which is structured to convert into equity in VARJO upon the occurrence of certain predetermined events. THEON also retains the right to an additional investment of EUR 5 million under the same conditions. This investment will support the continued development of VARJO’s cutting-edge technologies and will strengthen THEON’s digital expansion strategy through the THEON NEXT program, particularly with respect to the development of high-tech products for defense applications.

Christian Hajiminas, CEO of THEON, said:
“Following the recent significant acquisition of KAPPA, THEON has been able to sign four ground-breaking agreements, ensuring that THEON maintains its leading position in portable electro-optical systems. We are very proud that these agreements bring the US and Europe closer together to develop the next generation of portable systems for the soldier. The partnership initially includes operations in the United States, the United Kingdom, Finland as well as Greece and will eventually expand to Germany and Belgium, where our European thermal/digital technology center is being established. Together, we are pushing the boundaries of Augmented Reality capabilities in defence. These initiatives and investments will be presented in detail at the Capital Markets Day to be held in Athens in November 2025 (details to be made public). I am particularly proud of our commercial and research teams for helping to secure these deals in a short period of time, following a thorough study of critical technologies and potential partners over the last 12 months.”

Dmitris Mandridis, Technical Director of THEON SENSORS, said:
“THEON has managed to create an advanced global technical framework for collaboration, combining all the key technologies of the new era of the connected soldier with AR capabilities, as evidenced by the introduction of the A.R.M.E.D. product line and its ever-increasing acceptance by modern armies. Every element of this partnership ensures that THEON will be at the forefront of new developments in digital and AR technology, which further strengthens the A.R.M.E.D. product line for the benefit of our end customers. THEON’s R&D department has been expanded and reorganized to enable it to incorporate all of these partnerships.”

Dimitris Parthenis, CFO of THEON, said:
“Acquiring key technologies, especially when they are associated with large companies that are also active in the civil sector, through such deals is a flexible and cost-effective investment with a rapid return for all parties involved. THEON’s ability to convert these development funds into equity investments will positively impact its future financial results. The current investment, totalling €25 million over two to five years, is expected to pay off quickly, through strengthening the features and commercial position of our existing offering, and through the future growth of these companies with some of the most promising technologies in the civil and defence sectors. We are proud to look to the future with these outstanding partners who share our pioneering entrepreneurial spirit.”

Michael Murray, CEO of KOPIN, said:
“With defence investment accelerating globally, and particularly among NATO’s European allies, strategic partnerships have become critical to delivering, mission ready, next generation technologies. We are proud of our partnership with THEON, a partnership that embodies innovation, flexibility and shared vision. By integrating KOPIN’s advanced micro displays and specialized optical subsystems with THEON’s high-level expertise in night vision, thermal imaging and Electro-Optical ISR systems, we are not only meeting the evolving requirements of modern military operations, but actively shaping the future of battlefield awareness and operational effectiveness.”

Amal Ghosh, CEO of eMagin, said:
“We are excited to partner with THEON, a leader in advanced optical and imaging systems, to integrate eMagin’s leading OLED micro-display technology into their next generation of products. This partnership underscores our commitment to deliver unparalleled image quality, performance and reliability for mission-critical applications. By combining eMagin’s innovation in micro displays with THEON’s expertise in precision optical technology, we are poised to create solutions that set new standards in the industry and deliver exceptional value to customers worldwide.”

David Shoemaker, CEO of ALEREON, said:
“We are excited to partner with THEON and participate in this initiative with an eye to the future. THEON’s proven expertise in electro-optical systems and extensive international business development network make them an ideal partner to expand the reach and implementation of ALEREON’s UWB technology. With THEON as our key partner in Europe and the Middle East, we look forward to bringing our battle-tested, battle-proven communications solutions into the hands of many more allied soldiers.”

Timo Toikkanen, CEO of VARJO, added:
“We are proud to welcome THEON as a strategic investor in VARJO. Since our inception, VARJO has been creating the world’s most advanced military VR/XR systems. THEON’s extensive experience and leadership in the defense sector make them an ideal partner as we expand our footprint in the field of mission-critical training and simulation, enabling unprecedented levels of realism, readiness and operational effectiveness.”