Dragonfly Energy Announces Pricing of $5.5 Million Public Offering of Common Stock

Rhea-AI Summary

Dragonfly Energy (Nasdaq: DFLI), a leader in energy storage and battery technology, has announced the pricing of an underwritten public offering of 21,980,000 shares of common stock at $0.25 per share.

The offering is expected to generate gross proceeds of approximately $5.5 million before deducting underwriting discounts, commissions, and other expenses. Canaccord Genuity is serving as the sole bookrunner. The company plans to use the net proceeds for working capital, general corporate purposes, and debt repayment. The offering is anticipated to close around July 31, 2025.

Positive

• None.

Negative

• Significant dilution with 21.98M new shares at $0.25 per share
• Low offering price indicates weak market position

Insights

Financial Analyst

Dragonfly Energy raises $5.5M through deeply discounted stock offering, suggesting severe financial strain and significant shareholder dilution.

Dragonfly Energy's $5.5 million public offering reveals concerning financial indicators that warrant careful analysis. The company is issuing 21,980,000 new shares at just $0.25 per share, representing a substantial discount to recent trading prices and indicating significant desperation for capital. This offering will cause extreme dilution for existing shareholders, potentially increasing the outstanding share count dramatically.

The stated use of proceeds is particularly telling - the funds will go toward "working capital" and "repayment of indebtedness," suggesting the company is struggling with liquidity issues and debt obligations rather than investing in growth initiatives. With Canaccord Genuity as the sole bookrunner, the absence of multiple underwriters may indicate limited institutional interest.

The offering's pricing mechanism - through a shelf registration statement that was declared effective in November 2023 - shows the company had anticipated potential capital needs. However, the extremely low per-share price points to deteriorating market perception and financial position since that filing. For a Nasdaq-listed energy storage technology company to raise capital at this valuation level signals fundamental challenges in either its technology adoption, market positioning, or financial management.

RENO, Nev., July 30, 2025 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. (“Dragonfly Energy” or the “Company”) (Nasdaq: DFLI), an industry leader in energy storage and battery technology, today announced the pricing of an underwritten public offering of 21,980,000 shares of common stock at a price to the public of $0.25 per share, for gross proceeds of approximately $5.5 million, before deducting underwriting discounts and commissions and other estimated offering expenses. All shares of common stock are being offered by Dragonfly Energy. The offering is expected to close on or about July 31, 2025, subject to the satisfaction of customary closing conditions.

Canaccord Genuity is acting as the sole bookrunner for the offering.

Dragonfly Energy intends to use the net proceeds from the offering for working capital and other general corporate purposes, including the repayment of its indebtedness in the ordinary course.

The offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-275559) that was declared effective by the Securities and Exchange Commission (“SEC”) on November 24, 2023. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and a final prospectus supplement with the final terms of the offering will be filed with the SEC and will be available for free on the SEC’s website, located at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the offering may be obtained, when available, from Canaccord Genuity LLC, Attention: Syndication Department, One Post Office Square, Suite 3000, Boston, Massachusetts 02109, or by telephone at (617) 371-3900, or by email at prospectus@cgf.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.

About Dragonfly Energy

Dragonfly Energy Holdings Corp.is a comprehensive lithium battery technology company, specializing in cell manufacturing, battery pack assembly, and full system integration. Through its renowned Battle Born Batteries® brand, Dragonfly Energy has established itself as a frontrunner in the lithium battery industry, with hundreds of thousands of reliable battery packs deployed in the field through top-tier OEMs and a diverse retail customer base. At the forefront of domestic lithium battery cell production, Dragonfly Energy’s patented dry electrode manufacturing process can deliver chemistry-agnostic power solutions for a broad spectrum of applications, including energy storage systems, electric vehicles, and consumer electronics. The Company's overarching mission is the future deployment of its proprietary, nonflammable, all-solid-state battery cells.

To learn more about Dragonfly Energy and its commitment to clean energy advancements, visit investors.dragonflyenergy.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical statements of fact and statements regarding the Company’s intent, belief or expectations, including, but not limited to, statements about the Company’s expectations regarding the satisfaction of customary closing conditions related to the offering and the anticipated use of proceeds therefrom. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “may,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements necessarily contain these identifying words. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the offering, as well as risks and uncertainties associated with the Company’s business and finances in general, including the risks and uncertainties in the section captioned “Risk Factors” in the preliminary prospectus supplement related to the offering that will be filed with the SEC, the Company’s most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Report on Form 10-Q. There can be no assurances that we will be able to complete the offering on the anticipated terms, or at all. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

Investor Relations:
Eric Prouty
Szymon Serowiecki
AdvisIRy Partners
DragonflyIR@advisiry.com

FAQ

What is the size and price of DFLI's public offering in July 2025?

Dragonfly Energy is offering 21,980,000 shares of common stock at $0.25 per share, targeting gross proceeds of $5.5 million.

How will Dragonfly Energy use the proceeds from its $5.5M offering?

The company plans to use the net proceeds for working capital, general corporate purposes, and repayment of indebtedness in the ordinary course.

Who is the bookrunner for DFLI's July 2025 public offering?

Canaccord Genuity is acting as the sole bookrunner for the offering.

When is DFLI's public offering expected to close?

The offering is expected to close on or about July 31, 2025, subject to customary closing conditions.

What is the regulatory basis for DFLI's public offering?

The offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-275559) that was declared effective by the SEC on November 24, 2023.