#USA #Dallas #Flux Power #battery technology #Solidion Technology

Solidion Technology Sticks to Its Offer for Flux Power

In a bold move, Solidion Technology, Inc. (NASDAQ: STI), renowned for its advanced battery tech solutions, is making headlines by standing firmly behind its acquisition proposal for Flux Power Holdings, Inc. (NASDAQ: FLUX). This comes after the Flux board dismissed the company's earlier bid, labeling it as an undervaluation of its offerings.

Solidion's Stance

Jaymes Winters, the Chairman and CEO of Solidion, firmly disagrees with Flux's board's assertion that the proposal significantly undervalues the company. He emphasized that Solidion’s offer is not only final but also the best available. According to Winters, the proposal effectively considers the capital requirements needed to stabilize Flux, as the company grapples with regulatory issues and significant dilution risks.

Winters stated, "Solidion is and remains an opportunistic acquirer of businesses that can complement and enhance our existing technology." He further reinforced the significance of safeguarding shareholder value, indicating that Solidion would not pursue opportunities that are overpriced, unsustainable, or misaligned with its growth strategy. The company plans to explore other avenues if the Flux acquisition does not proceed.

Flux's Financial Struggles

Solidion pointed out that Flux Power is still in urgent need of capital, which has led to issuing shares at significant discounts. The implications of private placements and share credit lines that could lead to even more severe dilution are worrisome. Notably, Solidion mentioned that shareholders ought to be made aware of how much additional capital Flux would require, where it would come from, and what it might cost existing shareholders.

Flux is estimated to need at least $10 million in new capital to meet its goals. Achieving this without substantial shareholder dilution would likely necessitate an acquisition by a stronger entity like Solidion.

NASDAQ Listing Pressure

Additionally, Flux Power is under pressure concerning its NASDAQ listing. The company recently received a notice from NASDAQ indicating that its stock price has been below the minimum bid price of $1.00 for 30 consecutive trading days. While Flux was granted an initial 180 days to comply with listing requirements, any needed reverse stock splits could lead to share price declines ranging from 20% to 40%, similar to patterns observed in the past.

Navigating Economic Challenges

The macroeconomic landscape also poses substantial risks for Flux Power. The company’s expectations for easing headwinds may not fully address the ongoing uncertainties in the macroeconomic environment, especially considering significant supply chain vulnerabilities linked to import tariffs. A company with a robust balance sheet, like Solidion, is better positioned to manage these uncertainties.

Winters noted that shareholders of Flux Power deserve the transparency needed to make informed assessments regarding the company’s continuity. They should also be provided with a clear choice between an acquisition offering high levels of certainty and continuing to fund an uncertain recovery path fraught with potential costs and dilution.

About Solidion Technology

Founded in Dallas, Texas, Solidion is not only involved in advanced battery technology but also engages in the production of battery materials and components. The company focuses on developing next-generation batteries for energy storage systems, which include uninterruptible power supplies for AI data centers and electric vehicles across land, air, and sea. Solidion boasts a significant portfolio of over 385 patents, covering innovations like high-capacity silicon anodes, graphene-based solutions, and cutting-edge lithium-sulfur and lithium-metal technologies.

For further information about Solidion Technology, visit www.solidiontech.com or reach out to their Investor Relations.

A Transaction in the Future?

Solidion has expressed interest in pursuing the acquisition of Flux Power Holdings, though no assurance can be given that a definitive agreement will be reached or that any transaction will ultimately be initiated or completed. This statement is merely informative and should not be construed as a binding commitment or offer. Proposed transactions would be subject to legal and regulatory requirements, due diligence, financing considerations, and customary approvals.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Solidion intends to utilize the safe harbor provisions of this act and makes no commitment to publicly update any forward-looking statements unless required by law.