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

Solidion Technology's Acquisition Plans for Flux Power

In a significant move within the advanced battery technology sector, Solidion Technology, Inc. (NASDAQ: STI) has proposed an all-cash acquisition of Flux Power Holdings, Inc. (NASDAQ: FLUX). The announcement, made on September 30, 2026, serves as both an intent to pursue the acquisition and a call to action for Flux's shareholders.

The Open Letter to Shareholders

The communication directed towards Flux's shareholders highlights Solidion's belief in the potential of Flux as a valuable player in the market. Jaymes Winters, the CEO of Solidion Technology, articulated that while Flux possesses a wealth of products, customers, and expertise, the company’s current performance does not reflect these assets. He emphasized the importance of giving shareholders a choice between immediate financial return and uncertain future prospects.

Declining Financial Performance

Solidion pointed out serious concerns regarding Flux's financial health, revealing a staggering 37% decrease in revenue, which fell from $66.4 million in fiscal 2025 to just $42.1 million in fiscal 2026. Furthermore, Flux reported an operating loss of $6.5 million and a net loss totalling $7.4 million, compounded by approximately $5.9 million in negative operating cash flow. With an accumulated deficit reaching roughly $113.8 million, Flux's financial standing appears precarious.

Liquidity Concerns and Operational Strategies

Compounding these challenges, the independent audit raised substantial doubt about Flux's viability as a going concern. The company faces an imminent need to raise $4 million of equity capital as dictated by Gibraltar Business Capital, leading to potential shareholder dilution. Solidion highlighted that their acquisition proposal, though likely priced lower than Flux's recent closing price, could offer a better return than any future highly dilutive financing.

Solidion’s acquisition strategy aims to inject greater financial and operational discipline into Flux. With cash reserves reported at approximately $27.7 million, Solidion plans to streamline operations, possibly consolidating public company costs while optimizing customer acquisition and retention strategies.

A Call for Urgency from Flux's Management

Despite numerous overtures for dialogue with Flux’s management and board, Solidion expressed disappointment in the lack of prompt engagement considering Flux’s alarming financial state. Winters' letter firmly communicates the urgency required for Flux to reconsider its current trajectory, advocating for immediate change to safeguard shareholder interests.

About Solidion Technology

Headquartered in Dallas, Texas, Solidion Technology specializes in advanced battery solutions, focusing on manufacturing materials and components for next-gen batteries, particularly for energy storage solutions in growing sectors like artificial intelligence and electric vehicles. Solidion boasts over 385 patents, indicating robust innovation capabilities in battery technology.

In summary, Solidion Technology inspires optimism among Flux shareholders, proposing an acquisition that could revitalize the struggling company and create mutual value in a challenging market landscape. As the situation unfolds, it will be interesting to observe how both companies navigate this potential shift in ownership and strategy.