Trump announces trade deal with EU following months of negotiations
RENO, Nev. - Dragonfly Energy Holdings Corp. (Nasdaq:DFLI), currently trading at $0.17 with a market capitalization of $1.59 million, announced Monday it has entered into a Settlement and Mutual Release Agreement with the holder of its Series A Convertible Preferred Stock, eliminating all outstanding preferred shares and associated obligations.
Under the agreement, Dragonfly Energy will issue 2,100,000 shares of common stock in exchange for the surrender of all outstanding Series A Preferred Stock, satisfying the company’s obligations under the preferred stock and related agreements.
"By eliminating the risks related to the number of conversion shares and dividend obligations associated with the Series A Preferred Stock, we believe we have successfully improved our capital structure and have enhanced our financial flexibility, while removing potential future dilution concerns," said Dr. Denis Phares, Chief Executive Officer of Dragonfly Energy. According to InvestingPro data, the company operates with a total debt of $58.53 million and maintains a WEAK financial health score.
The transaction was completed under Section 3(a)(9) of the Securities Act of 1933, which provides an exemption from registration requirements.
Dragonfly Energy, a lithium battery technology company specializing in cell manufacturing and battery pack assembly, markets its products through the Battle Born Batteries brand, generating annual revenue of $51.5 million. The company focuses on domestic lithium battery cell production and its patented dry electrode manufacturing process. InvestingPro subscribers can access 14 additional key insights and a comprehensive analysis of the company’s financial health and market position.
The information in this article is based on a company press release statement.
In other recent news, Dragonfly Energy Holdings Corp reported a 6.8% year-over-year revenue increase for the first quarter of 2025, reaching $13.4 million. Despite this revenue growth, the company posted a net loss of $6.8 million, or $0.93 per diluted share. Dragonfly Energy projects a 12% revenue growth for the second quarter of 2025, aiming for net sales of $14.8 million. The company also announced it has received an exception from the Nasdaq Hearings Panel, granting it until November 2025 to regain compliance with Nasdaq’s listing requirements. This extension follows a hearing and submission of a compliance plan to address issues like the minimum bid price and market value of listed securities. Additionally, Dragonfly Energy reached an agreement to cancel warrants for the purchase of up to 4,000 shares of its Series A Convertible Preferred Stock. The resignation of Rick Parod from the company’s Board of Directors was also disclosed, with no immediate replacement announced. These developments reflect the company’s ongoing efforts to stabilize its financial standing and maintain its Nasdaq listing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.