#USA #Dallas #Flux Power #Solidion Technology #Stock Acquisition

Solidion Technology Proposes Acquisition of Flux Power Inc.

On October 1, 2026, Solidion Technology, Inc. (NASDAQ: STI), an advanced battery technology solutions provider, publicly announced its intention to acquire Flux Power Holdings, Inc. (NASDAQ: FLUX). This announcement came in the form of an open letter addressed to Flux’s shareholders, highlighting the company’s commitment to address the current financial crisis faced by Flux Power.

Jaymes Winters, the CEO of Solidion Technology, outlined the strategic rationale behind this acquisition proposal, stressing that shareholders of Flux deserve the chance to choose immediate cash rather than waiting for uncertain future returns. The backdrop of this proposal is Flux’s declining financial performance. In FY 2026, Flux reported a staggering decrease in revenue by approximately 37%, totaling $42.1 million down from $66.4 million in the previous year, alongside operational losses close to $6.5 million.

In his open letter, Winters articulated concerns regarding the impending dilution of shareholders' equity, emphasizing that despite the value embedded in Flux's products, personnel, and operational framework, the current stock price doesn’t reflect the true worth due to these financial hardships. He posits that the acquisition could bring much-needed operational discipline and strategic realignment to foster shareholder value. Solidion seeks to leverage Flux’s established revenue streams, customer base, and manufacturing capabilities to facilitate growth.

Flux Power's ongoing liquidity issues have raised alarms among its stakeholders, with independent auditors expressing serious doubts about its ability to continue as a going concern. Following a recent amendment to its credit agreement, Flux has been tasked with raising $4 million in equity within a 50-day period, a move that could drastically dilute existing shareholders’ stakes.

Winters highlighted that while Solidion’s proposed cash acquisition price may initially fall below the recent closing price of Flux's stock, it remains an attractive alternative compared to a potentially significant dilution through the proposed financing avenue. Ultimately, he conveyed that Solidion could implement a more robust operational structure post-acquisition, focusing on improved customer acquisition and retention strategies, enhancing product competitiveness, and fostering sustainable economic returns.

Despite several attempts to engage Flux’s management and board regarding this acquisition, Solidion believes that the responses received have not demonstrated the urgency that the prevailing financial situation merits. Winters' outreach aims to not only initiate discussions but also to emphasize the dire financial circumstances that Flux is grappling with and the imperative need for change in leadership and operational focus.

In conclusion, while the road to a completed acquisition is fraught with challenges and dependent upon extensive negotiations and regulatory approvals, the dialogue initiated by Solidion Technology marks a significant chapter in the future of Flux Power. The combination of Flux’s potential and Solidion’s strategic foresight might pave the way for a successful turnaround, ultimately benefitting shareholders on both ends if the acquisition materializes.

For further inquiries or detailed information regarding this acquisition proposal, stakeholders are encouraged to reach out to Solidion Technology’s investor relations team at their official website: www.solidiontech.com.