Dragonfly Energy (DFLI) Stock Dips After Announcing Public Offering
Shares of Dragonfly Energy Holdings Corp (NASDAQ:DFLI) are experiencing a downturn on Monday after the company announced the pricing of its underwritten public offering. The offering consists of 20 million shares of common stock priced at $1.25 per share. This news follows a significant surge in the stock's value last week.
Details of the Public Offering
The public offering is expected to generate gross proceeds of approximately $25 million, before deducting underwriting fees and other expenses. The underwriters have been granted a 30-day option to purchase up to an additional 3 million shares at the same price, excluding underwriting discounts and commissions. The closing of the offering is anticipated to occur around October 7, 2025, subject to customary closing conditions.
Use of Proceeds
Dragonfly Energy intends to allocate the proceeds from the offering to support working capital and for general corporate purposes. This includes repaying $4 million under its existing term loan. Furthermore, the company plans to utilize the capital to fund initiatives aimed at generating near-term revenue and to advance its next-generation battery technologies. This includes scaling its dry electrode process and applying it to solid-state battery development.
Recent Stock Performance
The company's shares have pulled back from a 100% jump last week, which was triggered by the announcement of its selection by the Nevada Tech Hub for first-round funding. The funding award, expected to be approximately $300,000, is earmarked for modernizing production systems, upgrading Battle Born Batteries manufacturing lines, and working towards achieving ISO 9001 certification.
While the past month has seen a dramatic increase of 423.1% in Dragonfly stock, the year-to-date performance remains down 55.2%, according to Benzinga Pro data. However, the stock has still increased 117.6% in the last six months.
DFLI Price Action
As of the time of publication on Monday, Dragonfly Energy Hldgs (DFLI) shares were trading down 23.21% at $1.45.
