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RENO, Nev. - Dragonfly Energy Holdings Corp. (Nasdaq:DFLI) announced Wednesday the pricing of an underwritten public offering of 21,980,000 shares of common stock at $0.25 per share, expected to generate approximately $5.5 million in gross proceeds before deducting underwriting discounts, commissions and other expenses. According to InvestingPro data, the company’s stock has seen a 94% decline over the past year, with current market capitalization at $3.6 million.
The battery technology company plans to use the net proceeds for working capital, general corporate purposes, and debt repayment. The offering is expected to close on or about July 31, subject to customary closing conditions. InvestingPro analysis reveals the company carries a total debt of $58.5 million and is rapidly burning through cash, with a negative free cash flow of $11 million in the last twelve months.
Canaccord Genuity is serving as the sole bookrunner for the offering, which is being conducted pursuant to a shelf registration statement on Form S-3 that was declared effective by the Securities and Exchange Commission in November 2023.
Dragonfly Energy specializes in lithium battery technology, including cell manufacturing, battery pack assembly, and system integration. The company markets its products through its Battle Born Batteries brand and supplies battery packs to OEMs and retail customers.
The announcement comes as the company continues development of its proprietary dry electrode manufacturing process, which it claims can deliver various power solutions for energy storage systems, electric vehicles, and consumer electronics.
This information is based on a company press release statement.
In other recent news, Dragonfly Energy Holdings Corp. has taken significant steps to restructure its financial obligations and improve its market standing. The company announced the elimination of its Series A Convertible Preferred Stock by issuing 2,100,000 shares of common stock, effectively removing all outstanding preferred shares and associated obligations. Additionally, Dragonfly Energy has canceled warrants for the purchase of up to 4,000 shares of Series A Preferred Stock, which had an exercise price of $10,000 per share. This move aims to streamline the company’s financial structure.
The company is also addressing its compliance issues with Nasdaq. Dragonfly Energy received an extension from the Nasdaq Hearings Panel until November 10, 2025, to meet the exchange’s listing requirements. These include converting remaining preferred stock into common stock and restructuring part of its outstanding debt. The company must also meet the minimum bid price and market value requirements set by Nasdaq.
Furthermore, Dragonfly Energy is dealing with potential delisting from Nasdaq due to not meeting the minimum Market Value of Listed Securities and the minimum bid price requirements. In corporate governance developments, Rick Parod has resigned from the company’s Board of Directors, with no immediate replacement announced. These recent developments highlight the company’s ongoing efforts to stabilize its financial and operational standing.
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