Flux Power Holdings Faces Nasdaq Delisting Over Equity Deficit

Flux Power Holdings faces Nasdaq delisting due to a $4,372,000 equity deficit as of March 31, 2025. The company plans to appeal the decision and raise capital through a private placement and workforce reduction to regain compliance and avoid stock suspension on August 11, 2025. Analysts rate the stock as a Buy with a $6.00 price target, but technical indicators are neutral, and valuation remains challenging due to persistent losses.

Xcel Brands (NASDAQ: XELB), a leading media and consumer products company, has announced the pricing of its public offering and concurrent private placement. The company will issue 2,181,818 shares of common stock at $1.10 per share in the public offering, along with 145,147 unregistered shares at $1.36 per share to company insiders, including CEO Robert D'Loren [1].

The combined transactions are expected to raise approximately $2.6 million in gross proceeds. The offering is anticipated to close around August 4, 2025. Maxim Group LLC serves as the sole placement agent. The company plans to use the proceeds for brand development, working capital, and general corporate purposes, including settling outstanding payables [2].

The public offering represents a 19% discount to the prior day's closing price of $1.36, while the private placement is offered at the non-discounted price of $1.36 per share. The significant discount on the public offering suggests urgency in raising capital, though management participation at the higher price signals internal confidence. The modest size of this capital raise ($2.6 million) relative to most public companies raises questions about Xcel's cash position and burn rate. The specific mention of "payment of outstanding payables" indicates short-term liquidity constraints [2].

The securities described above are being offered pursuant to a registration statement on Form S-1, as amended (File No. 333-288495), which was declared effective by the Securities and Exchange Commission (the “SEC”) on July 31, 2025. The offering is being made only by means of a prospectus which forms a part of the effective registration statement. A preliminary prospectus relating to the offering has been filed with the SEC. The shares to be issued in the concurrent private placement were offered under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), and Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws. Electronic copies of the final prospectus, when available, may be obtained on the SEC’s website at www.sec.gov and may also be obtained by contacting Maxim Group LLC at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Prospectus Department, or by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com [2].

References:
[1] https://www.ainvest.com/news/xcel-brands-announces-public-offering-concurrent-private-placement-2508/
[2] https://www.globenewswire.com/news-release/2025/08/01/3125792/17602/en/Xcel-Brands-Announces-Pricing-of-2-6-Million-Public-Offering-and-Concurrent-Management-Led-Private-Placement.html