Investing.com -- Aureus Greenway Holdings (NASDAQ: AUGS) shares rose 55% after the Wall Street Journal reported that the company will merge with Powerus, a drone manufacturer backed by President Trump’s sons.

Eric Trump and Donald Trump Jr. are supporting Powerus through their investment vehicle American Ventures, according to the report. The reverse merger will result in Powerus trading on the Nasdaq stock exchange in the coming months.

Powerus, a West Palm Beach, Florida-based drone company formed last year, has acquired three companies in the past six months and sells aerial and maritime drones. The company said it is working toward building more than 10,000 drones monthly, exceeding production levels of most U.S. drone manufacturers.

Investors in the transaction include American Ventures, Unusual Machines, where Donald Trump Jr. is a shareholder and advisory board member, and the Korea Corporate Governance Improvement Fund, which invested $50 million. Trump brothers-backed investment bank Dominari Securities is also involved.

The merger comes as the Pentagon pursues its Drone Dominance initiative, which aims to spend $1.1 billion to procure hundreds of thousands of U.S. systems by 2027. The Trump administration has banned new Chinese drones in the U.S., creating opportunities for domestic manufacturers.

Powerus CEO Andrew Fox said the reverse merger would provide access to public capital markets to fund manufacturing expansion and additional acquisitions.

Aureus Greenway Holdings is a holding company for golf courses in Florida.

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