Dragonfly Energy Announces Proposed Public Offering of Common Stock and Warrants.

Dragonfly Energy Holdings Corp. has commenced a public offering of common stock and pre-funded warrants. The offering includes an option for the underwriter to purchase up to 15% additional securities at the public offering price. Dragonfly Energy is the sole seller of the common stock and pre-funded warrants in the offering.

Dragonfly Energy Holdings Corp. (DFLI) has commenced a public offering of common stock and pre-funded warrants, marking a significant financial move for the energy storage and battery technology company, according to QuiverQuant. The offering includes an option for the underwriter to purchase up to 15% additional securities at the public offering price. The company is the sole seller of the common stock and pre-funded warrants in the offering.

The offering involves the sale of 36 million shares of common stock at $1.35 each, along with pre-funded warrants for up to 5 million shares at $1.3499 each. The gross proceeds from the offering are expected to total approximately $55.4 million, the QuiverQuant announcement said. The offering is scheduled to close on October 17, 2025, subject to customary closing conditions, the QuiverQuant announcement said.

Canaccord Genuity is acting as the sole bookrunner for the offering, with Roth Capital Partners serving as the co-manager. The proceeds from the offering will be used for working capital, prepaying $45 million of debt, and investing in next-generation battery technologies, according to QuiverQuant.

The public offering provides Dragonfly Energy with substantial capital to support its operations and strategic initiatives. The company aims to use the funds to improve its financial stability by restructuring debt, invest in revenue-driving projects, and advance its next-generation battery technologies. The offering also underscores Dragonfly Energy's commitment to innovation and leadership in the energy storage sector.

While the public offering signifies a significant financial event for Dragonfly Energy, it also raises concerns about the company's financial health and debt management strategies. The need to restructure debt and raise capital through a public offering suggests potential financial instability or liquidity issues. Additionally, the inclusion of pre-funded warrants could dilute existing shareholders' equity if exercised.

Investors should closely monitor the progress of the offering and the company's financial performance to assess the potential impact on shareholder value. The offering is being conducted under a shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (SEC) on November 24, 2023, the QuiverQuant announcement noted.