Solidion Technology Proposes Flux Power Acquisition, Faces Management Opposition

Dallas, TX – Solidion Technology, Inc. has publicly proposed to acquire Flux Power Holdings, Inc. in an all-cash transaction. The company sent an open letter to Flux Power shareholders expressing its willingness to engage constructively but stating that it is encountering opposition from Flux's management and board.

In the letter, Solidion Technology cited Flux's deteriorating financial performance, arguing that Flux's stock price does not reflect the upcoming dilution of shareholder capital. According to Solidion, Flux's revenue declined approximately 37% in fiscal year 2026 to $42.1 million and the company reported an operating loss of $6.5 million and a net loss of $7.4 million.

Solidion also highlighted Flux's significant liquidity and financing challenges. Flux's independent auditor has raised substantial doubt about the company's ability to continue as a going concern. Furthermore, Flux is in breach of its credit agreement with Gibraltar Business Capital, which requires the company to raise at least $4 million in equity within 50 days.

Solidion Technology believes it can bring greater financial and operational discipline to Flux. The company proposes cost reductions, including consolidating sales, general, and administrative expenses and the costs associated with being a public company. The focus would be on customer acquisition, revenue growth, and product competitiveness.