Dragonfly Energy exchanges preferred stock for 2.1 million common shares

Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) announced it has entered into a settlement agreement to exchange all outstanding shares of its Series A Convertible Preferred Stock for 2.1 million shares of common stock.

The battery technology company will issue the common shares, valued at $0.0001 par value per share, to the holder of the Series A Preferred Stock in exchange for surrendering all outstanding preferred shares. The transaction eliminates the company's obligations under the Series A Preferred Stock and related agreements.

The settlement removes dividend obligations and potential future dilution concerns associated with the preferred stock. Chief Executive Officer Dr. Denis Phares stated the move "improved our capital structure and have enhanced our financial flexibility, while removing potential future dilution concerns."

The common stock shares are being issued without registration under the Securities Act, relying on the exemption provided by Section 3(a)(9) of the Securities Act of 1933.

Dragonfly Energy specializes in lithium battery technology, including cell manufacturing and battery pack assembly. The company operates through its Battle Born Batteries brand and focuses on energy storage systems, electric vehicles, and consumer electronics applications.

The information is based on a company press release statement.

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