Dragonfly Energy Announces Corporate Debt Restructuring and Capital Raise

Core Viewpoint - Dragonfly Energy Holdings Corp. has successfully completed a debt restructuring and a capital raise, significantly enhancing its financial flexibility and liquidity [1][2][3] Debt Restructuring - The company amended its existing debt facility with senior lenders, which includes a waiver of quarterly liquidity covenant requirements through June 30, 2026, and an extension of the debt maturity date to October 7, 2027 [7] - The amendment also includes a Payment-in-Kind (PIK) interest option for 2025 and a reduction of the monthly minimum liquidity covenant to $2.5 million through March 31, 2026 [7] Capital Raise - Dragonfly Energy raised$3.5 million through a registered direct offering and private placement of Series A Convertible Preferred Stock, with a potential additional $4.5 million contingent on stockholder approval [2][4] - The company has also agreed to sell warrants to purchase up to an aggregate of$40 million in additional shares of Preferred Stock, providing further capital opportunities [2][4] Use of Proceeds - The net proceeds from the private placement will be utilized for working capital and general corporate purposes [3] Company Overview - Dragonfly Energy is a leader in energy storage and battery technology, specializing in lithium battery manufacturing and system integration [9] - The company aims to advance clean energy solutions through its proprietary, nonflammable, all-solid-state battery cells [9]