Dragonfly Energy Stock Soars 19.1% on Preferred Stock Elimination

Dragonfly Energy's stock surged 19.1% in pre-market trading on July 22, 2025, driven by a strategic move to eliminate all outstanding shares of its Series A Convertible Preferred Stock. This decision, announced on July 21, 2025, involves issuing 2,100,000 shares of common stock in exchange for the surrender of all outstanding Series A Preferred Stock, thereby removing associated common stock issuance obligations and dividend obligations.

This strategic move is aimed at enhancing the company's financial flexibility and reducing potential future dilution concerns. By eliminating the risks related to the number of conversion shares and dividend obligations, Dragonfly Energy aims to focus its resources on driving growth and achieving profitability. The company's CEO, Dr. Denis Phares, highlighted that this settlement completes the resolution of the remaining outstanding shares of Series A Preferred Stock, positioning the company to better focus on its core business activities.

Dragonfly Energy, known for its leadership in energy storage and battery technology, specializes in cell manufacturing, battery pack assembly, and full system integration. The company's renowned Battle Born Batteries® brand has deployed hundreds of thousands of reliable battery packs through top-tier OEMs and a diverse retail customer base. With its patented dry electrode manufacturing process, Dragonfly Energy is at the forefront of domestic lithium battery cell production, offering chemistry-agnostic power solutions for various applications, including energy storage systems, electric vehicles, and consumer electronics.