Solidion Technology Proposes Flux Power Acquisition, Faces Management Resistance

Solidion Technology has announced its intention to acquire Flux Power, a provider of battery technology solutions, in an all-stock transaction. The company released an open letter to Flux Power shareholders expressing frustration with the resistance from Flux's management and board of directors to the proposed acquisition.

According to Solidion CEO Jaymes Winters, Flux Power's stock price does not reflect its future potential, particularly given the anticipated equity dilution. Solidion's offer is therefore set below yesterday's closing price, adjusted for certain accounting items. The company asserts that Flux's deteriorating financial results necessitate a change in leadership, greater operational discipline, and a focus on increasing shareholder value.

Flux Power's financial situation appears critical, according to Solidion. For fiscal year 2026, the company's revenue declined by approximately 37% to $42.1 million, and it reported an operating loss of $6.5 million and a net loss of $7.4 million. Furthermore, its operating cash flow was negative, and its cash and cash equivalents stood at only about $0.3 million at the end of the fiscal year. Flux's independent auditor has raised substantial doubt about the company's ability to continue as a going concern, and it is in default of its credit agreement with Gibraltar Business Capital.

Solidion Technology believes the acquisition would support its own growth strategy and provide Flux with needed financial and operational restructuring. Solidion's cash and cash equivalents were approximately $27.7 million as of June 30, 2026. Post-acquisition, Solidion would aim to implement a more streamlined operational structure, including evaluating opportunities to rationalize overhead and corporate costs, while prioritizing customer acquisition and retention, sales growth, product competitiveness, and investments that generate sustainable business returns.