Solidion Technology Maintains Acquisition Offer for Flux Power Despite Board Rejection
Solidion Technology (NASDAQ: STI) has reaffirmed its acquisition proposal for Flux Power Holding Inc. (NASDAQ: FLUX), stating it will not increase the offer despite being rejected by Flux's board of directors. Solidion’s CEO, Jaymes Winters, emphasized that the bid is fair and final, considering the capital needs required to stabilize Flux Power. The company argues that Flux faces significant challenges including dilutive financing requirements, regulatory pressures from NASDAQ listing compliance issues, and macroeconomic risks such as supply chain tariffs. Solidion believes an acquisition by a stronger entity like itself would be more beneficial for Flux shareholders than continued independent operations, which may require at least $10 million in new capital. The company also highlighted concerns over potential reverse stock splits that could further devalue shares if compliance is not achieved within the 180-day grace period provided by NASDAQ. Solidion remains committed to pursuing strategic acquisitions aligned with its growth strategy and will continue exploring other opportunities while awaiting a response from Flux Power shareholders.
Topics: capital_requirements corporate_strategy M&A shareholder_value