Dragonfly Energy Finalizes Major Share Exchange Strategy

Dragonfly Energy Completes Exchange of Series A Preferred Stock

Dragonfly Energy Holdings Corp. (NASDAQ: DFLI), a leader in energy storage technology, has successfully concluded a significant strategic move by entering into a Settlement and Mutual Release Agreement. This agreement involves the exchange of all outstanding shares of its Series A Convertible Preferred Stock for shares of the Company’s common stock.

Details of the Share Exchange Agreement

As part of the agreed terms, Dragonfly Energy will issue 2,100,000 shares of its common stock as payment for the relinquishment of all outstanding shares of the Series A Preferred Stock. This exchange effectively settles and fulfills all obligations related to the Series A Preferred Stock and its accompanying agreements.

Statements from Leadership

Dr. Denis Phares, the Chief Executive Officer of Dragonfly Energy, expressed his views on this pivotal move, stating, "This settlement resolves the remaining Series A shares, thus removing conversion share and dividend obligations. By strengthening our capital structure, we enhance our financial flexibility and mitigate potential future dilution concerns. This strategic initiative enables us to focus our resources on growth and achieving profitability in our core markets."

The Rationale Behind the Share Exchange

The move to exchange shares is a calculated decision aimed at improving capital structure and setting Dragonfly Energy on a path towards future growth. The elimination of Series A Preferred Stock obligations allows the company to redirect its focus toward expanding its market reach and enhancing profitability across various segments, including energy storage solutions.

Compliance and Legal Aspects

The shares of common stock being issued in this transaction are conducted without registration under the Securities Act, relying on a specific exemption detailed in Section 3(a)(9) of the Securities Act of 1933. This legal positioning allows the exchange to proceed without the typical registration requirements, streamlining the transactional process for the company.

About Dragonfly Energy

Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) stands out as a prominent company in the lithium battery industry, specializing in areas such as cell manufacturing, battery pack assembly, and system integration. The company's flagship product line, Battle Born Batteries, is renowned for its reliability and is widely used across numerous applications, from recreational vehicles to consumer electronics.

Innovation at the Forefront

At the core of Dragonfly Energy’s ongoing innovation is its patented dry electrode manufacturing technique, which enables the production of chemistry-agnostic battery solutions. This technology positions the company to cater to a wide array of applications, thereby enhancing its competitive advantage in the market.

Future Prospects for Dragonfly Energy

In light of the recent developments, Dragonfly Energy is poised to explore further opportunities that may arise as it continues to push boundaries in battery technology and energy storage solutions. The exchange of Series A Preferred Stock not only streamlines operations but also prepares the company to capitalize on emerging trends within the industry.

Frequently Asked Questions

What is Dragonfly Energy's main focus as a company?

Dragonfly Energy specializes in lithium battery technology, including cell manufacturing and system integration.

What significant agreement did Dragonfly Energy finalize?

The company completed a settlement agreement to exchange its Series A Preferred Stock for common stock, improving its capital structure.

How many shares are being exchanged in the agreement?

Dragonfly Energy will issue 2,100,000 shares of common stock in the exchange.

What advantages does the share exchange provide?

It eliminates conversion share and dividend obligations while enhancing financial flexibility and reducing potential dilution concerns.

What is the significance of the dry electrode manufacturing process?

This patented technique allows Dragonfly Energy to produce versatile battery solutions across various applications efficiently.

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