Solidion Technology makes unsolicited all-cash bid for Flux Power

Solidion Technology, Inc. (NASDAQ: STI) has announced its intent to acquire Flux Power Holdings, Inc. (NASDAQ: FLUX) in an all-cash transaction, issuing an open letter to Flux shareholders after claiming Flux's management and board have not engaged with the proposal.

According to the press release, Solidion Chairman and CEO Jaymes Winters said the company "remains prepared to engage constructively with Flux's Board and management." Solidion said it has made several attempts to engage with Flux but does not believe the company has responded with sufficient urgency.

Solidion cited Flux's deteriorating financial condition as a key rationale for the proposed deal. Flux reported fiscal 2026 revenue of $42.1 million, down approximately 37% from $66.4 million in fiscal 2025. The company posted a $6.5 million operating loss, a $7.4 million net loss, and approximately $5.9 million in negative operating cash flow. Flux ended the fiscal year with approximately $0.3 million in cash and an accumulated deficit of approximately $113.8 million.

Flux's independent auditor has raised substantial doubt about the company's ability to continue as a going concern. Flux also remains in default under its Gibraltar Business Capital credit agreement, which under a September 18, 2026 amendment requires Flux to raise at least $4 million in equity capital within 50 days.

Solidion noted that its proposed per-share cash price would likely fall below Flux's closing price as of September 28, 2026, due to accounting adjustments it has identified. However, Solidion argued the offer price would exceed the price shareholders could expect following a heavily dilutive equity financing.

Solidion reported approximately $27.7 million in cash and cash equivalents as of June 30, 2026. The company said it would seek to create a leaner operating structure for Flux following any completed transaction.

No definitive agreement has been reached, and Solidion noted the proposal is non-binding and subject to due diligence, financing, regulatory approvals, and other conditions. There is no assurance a transaction will be completed.

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