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Investing.com -- Dragonfly Energy Holdings Corp (NASDAQ:DFLI) stock plunged 27.8% after the energy storage and battery technology company announced the pricing of an underwritten public offering that will significantly dilute existing shareholders.
The company priced its public offering of 21,980,000 shares of common stock at $0.25 per share, aiming to raise approximately $5.5 million in gross proceeds before deducting underwriting discounts, commissions, and other offering expenses. Canaccord Genuity is serving as the sole bookrunner for the offering, which is expected to close on or about July 31, 2025.
Dragonfly Energy stated it intends to use the net proceeds from the offering for working capital and other general corporate purposes, including the repayment of indebtedness in the ordinary course. All shares in the offering are being offered by the company itself.
The steep discount of the offering price compared to the company’s previous trading levels appears to be driving the significant sell-off in DFLI shares, as existing shareholders face substantial dilution from the new share issuance.
The offering represents a major capital raise for Dragonfly Energy, which specializes in energy storage solutions and battery technology. The transaction is subject to customary closing conditions.
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