Dragonfly Energy Announces Proposed Public Offering of Common Stock and Pre-Funded Warrants

Rhea-AI Summary

Dragonfly Energy (Nasdaq: DFLI), a leader in energy storage and battery technology, has announced a new public offering of common stock and pre-funded warrants. The offering includes a 30-day option for the underwriter, Canaccord Genuity, to purchase up to an additional 15% of securities at the public offering price.

The company plans to use the proceeds for working capital, general corporate purposes, and debt repayment. The offering is being made through a shelf registration statement (Form S-3) that became effective on November 24, 2023. The final size, terms, and completion of the offering remain subject to market conditions.

Positive

• Potential strengthening of working capital position
• Opportunity to reduce debt burden through repayment of indebtedness
• Shelf registration already effective, streamlining the offering process

Negative

• Potential dilution for existing shareholders
• Share offering may put downward pressure on stock price
• Indicates possible working capital constraints requiring external funding

Insights

Financial Analyst

Dragonfly Energy's stock offering signals potential dilution while addressing working capital and debt needs.

Dragonfly Energy has announced a proposed public offering of common stock and pre-funded warrants with Canaccord Genuity as the sole bookrunner. The offering includes a potential 15% additional allocation option for underwriters. This capital raising effort comes with several implications.

The company plans to use proceeds for working capital, general corporate purposes, and notably, debt repayment. This suggests Dragonfly may be facing financial constraints requiring external funding to maintain operations and address its debt obligations.

This stock offering will likely result in equity dilution for existing shareholders. While the exact number of shares and pricing details aren't disclosed, the additional shares will reduce each shareholder's ownership percentage. The inclusion of pre-funded warrants adds complexity to the capital structure.

For context, this offering is being conducted under a previously established shelf registration (Form S-3) that was declared effective in November 2023, providing the company with flexibility to issue securities when market conditions are favorable.

The explicit mention of debt repayment in the use of proceeds indicates addressing the balance sheet is a priority. While reducing debt can strengthen financial health long-term, the need for equity financing to achieve this may signal limited internally generated cash flow to service existing obligations.

RENO, Nev., July 29, 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 that it has commenced an underwritten public offering of shares of its common stock and, in lieu of common stock to investors who so choose, pre-funded warrants to purchase shares of its common stock. In addition, Dragonfly Energy expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the securities to be sold in the proposed offering at the public offering price for the common stock, less underwriting discounts and commissions. All shares of common stock and pre-funded warrants are being offered by Dragonfly Energy. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or the actual size or terms of the proposed offering.

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

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

The proposed 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 proposed 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 preliminary prospectus supplement and the accompanying prospectus relating to the proposed 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 completion, timing and size of its public 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 proposed 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 proposed offering that will be filed with the SEC, the Company’s most recently filed Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. There can be no assurances that we will be able to complete the proposed 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 purpose of Dragonfly Energy's (DFLI) new stock offering in July 2025?

Dragonfly Energy plans to use the proceeds for working capital, general corporate purposes, and debt repayment. The offering includes both common stock and pre-funded warrants.

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

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

What options are available to investors in DFLI's 2025 public offering?

Investors can choose between shares of common stock or pre-funded warrants to purchase shares of common stock.

How much additional securities can the underwriter purchase in DFLI's offering?

The underwriter has a 30-day option to purchase up to an additional 15% of securities at the public offering price, less underwriting discounts and commissions.

When was DFLI's shelf registration statement declared effective?

The shelf registration statement (Form S-3) was declared effective by the SEC on November 24, 2023.