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Investing.com -- Flux Power Holdings Inc (NASDAQ:FLUX) stock plunged 34% Friday after the lithium-ion energy storage solutions provider announced the pricing of an underwritten public offering.
The company priced 3,840,000 shares of its common stock at $2.50 per share, significantly below its previous market price. The offering is expected to generate approximately $9.6 million in gross proceeds before deducting underwriting discounts, commissions, and other expenses.
Flux Power has also granted the underwriter, Lake Street Capital Markets, LLC, a 30-day option to purchase up to an additional 576,000 shares at the same public offering price to cover potential over-allotments.
The sharp decline in share price reflects investor concerns about dilution of existing shareholders’ equity. At $2.50 per share, the offering price represents a substantial discount to Flux Power’s recent trading levels, triggering the significant sell-off.
The transaction is expected to close on November 3, 2025, subject to customary closing conditions. Lake Street Capital Markets is serving as the sole book-running manager for the offering.
Flux Power develops advanced lithium-ion energy storage solutions and software-driven electrification systems for commercial and industrial equipment. The company has not specified how it intends to use the proceeds from this capital raise.
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