Flux Power Secures $5 Million in Strategic Funding Round

Flux Power's Successful Private Placement
Flux Power Holdings, Inc. (NASDAQ: FLUX), a renowned innovator in lithium-ion energy storage solutions, recently announced its completion of a $5 million private placement. This funding round constitutes the sale of both Prefunded Warrants and Common Warrants, encompassing a total of 258,144 Prefunded Warrants and 1,214,769 Common Warrants.
Purpose of the Funding
The gross proceeds of approximately $5 million are intended to be applied towards working capital as well as various corporate purposes, reinforcing Flux Power's operational capacity. The purchase prices were contributed either in cash or through the cancellation of some existing debts carried by the company, a strategic move aimed at enhancing financial flexibility.
Details of the Warrants
Each Prefunded Warrant allows its holder to purchase one share of the company’s Series A Convertible Preferred Stock for just $0.001 per share. Additionally, for every Prefunded Warrant purchased, investors received a 5-year Common Warrant to acquire an additional number of common stock shares, calculated at fifty percent of those available through the exercise of the Prefunded Warrants.
CEO's Comments on the Private Placement
Krishna Vanka, the CEO of Flux Power, expressed optimism regarding the successful execution of this funding round, highlighting the overwhelming support from existing shareholders. More than 50% of beneficial ownership from these stakeholders emphasizes their confidence in the company’s potential for growth. Vanka noted that these funds are expected to extend the company’s cash runway and improve its financial positioning, ultimately aiding in the execution of strategic initiatives.
About Flux Power Holdings, Inc.
Flux Power, recognized for its commitment to innovation, designs, manufactures, and sells advanced lithium-ion energy storage systems for multiple sectors including material handling and airport ground support equipment. Their products are tailored to provide a more efficient, lower-cost alternative to traditional lead-acid and propane sources, enhancing sustainability efforts and improving environmental performance metrics. With Flux Power’s lithium-ion battery packs, customers benefit from reduced emissions and superior operational capabilities.
Future Outlook
Looking ahead, Flux Power is committed to continuously advancing its technology and expanding its market reach. With a strategic focus on electrification solutions, the company aims to cater to the rising demand for sustainable energy across various sectors. The recent funding is pivotal as it underpins their ambitious plans for future growth and development of innovative solutions that resonate with market needs.
Frequently Asked Questions
What is Flux Power Holdings, Inc. known for?
Flux Power is known for developing advanced lithium-ion battery storage solutions for commercial and industrial applications.
How much funding did Flux Power recently secure?
Flux Power secured $5 million in a recent private placement of warrants.
What are Prefunded Warrants?
Prefunded Warrants are financial instruments that give holders the right to purchase shares of preferred stock at a set price, contributing to companies' capital-raising efforts.
What will Flux Power use the funds for?
The funds will primarily be used for working capital and general corporate purposes.
Who is the CEO of Flux Power?
The CEO of Flux Power is Krishna Vanka.
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