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Dragonfly Energy Holdings Corp. (NASDAQ:DFLI), a Nevada-based company specializing in miscellaneous electrical machinery, equipment, and supplies, has announced an amendment to its Articles of Incorporation to increase the number of authorized shares of common stock from 250 million to 400 million, effective April 25, 2025. According to InvestingPro data, the company currently faces significant financial challenges, with a market capitalization of just $4.1 million and a concerning debt-to-capital ratio of 0.93. The stock has experienced a dramatic 92% decline over the past year, though current analysis suggests it may be undervalued at current levels. This change was approved by stockholders during a special meeting held on the same date.
The company’s common stock, par value $0.0001 per share, and redeemable warrants exercisable for common stock are listed on The Nasdaq Capital Market under the symbols DFLI and DFLIW, respectively.
In addition to the amendment, the special meeting addressed several other proposals. Stockholders approved the issuance of more than 20% of the company’s issued and outstanding Common Stock underlying certain warrants and shares of the Series A Convertible Preferred Stock. These issuances are in line with Nasdaq Listing Rules 5635(b) and 5635(d).
The stockholder meeting results for the proposals were as follows:
- Proposal 1, regarding the issuance of shares underlying certain warrants, passed with 3,865,285 votes for, 394,756 against, and 13,414 abstentions.
- Proposal 2, concerning the issuance of shares underlying Series A Convertible Preferred Stock, was approved with 3,864,611 votes for, 394,614 against, and 14,230 abstentions.
- Proposal 3, for the amendment to increase authorized shares of common stock, received 4,695,723 votes for, 853,394 against, and 12,565 abstentions.
Dragonfly Energy also reported that on February 26, 2025, it had entered into a Securities Purchase Agreement with an institutional investor. This agreement led to a registered direct offering and a concurrent private placement of Series A Preferred Stock and warrants. The initial closing occurred on February 27, 2025, followed by a second and final closing on April 28, 2025, where the company sold additional shares of Series A Preferred Stock.
The Series A Preferred Stock issued in the second closing was sold without registration under the Securities Act of 1933, in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act and Rule 506 as transactions not involving a public offering and sales to accredited investors. With the company’s current ratio at 1.51 and revenue of $50.65 million in the last twelve months, investors can access comprehensive analysis and detailed financial metrics through InvestingPro’s exclusive Research Report, part of its coverage of over 1,400 US stocks.
This report is based on information provided in the company’s SEC filing.
In other recent news, Dragonfly Energy Holdings Corp reported a 17% increase in revenue for Q4 2025, reaching $12.2 million, driven by a notable 61% rise in OEM sales. Despite this growth, the company faced a net loss of $9.8 million, or $1.39 per share, highlighting ongoing challenges with profitability. Canaccord Genuity responded to these developments by raising its price target for Dragonfly Energy from $1.25 to $3.00, maintaining a Buy rating on the stock. The analyst firm noted the company’s potential to alter industry cost dynamics but emphasized the need for additional capital for recovery. Dragonfly Energy is also undergoing a strategic shift, focusing on electrode tape production and optimizing corporate operations to improve financial performance. The company anticipates positive adjusted EBITDA by Q4 2025, with projected net sales of $13.3 million for Q1 2025. Additionally, Dragonfly Energy has strengthened its financial position through debt restructuring and capital raising, aiming to capitalize on growth opportunities in the trucking and industrial markets.
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