Dragonfly Energy Eliminates Series A Preferred Stock in 2.1M Share Exchange

Dragonfly Energy Holdings Corp. has completed a strategic transaction to eliminate its outstanding Series A Convertible Preferred Stock by issuing 2.1 million shares of common stock in exchange. This move resolves risks related to conversion rights and dividend obligations, strengthening the company’s capital structure and enhancing financial flexibility by removing potential future dilution concerns. CEO Denis Phares emphasized that the settlement positions Dragonfly to better focus on growth and profitability initiatives. The exchange was executed under Section 3(a)(9) of the Securities Act without formal registration, and the market responded positively, with Dragonfly shares rising nearly 100%. Despite this positive development, analysts and AI-driven forecasts indicate ongoing financial and operational challenges for Dragonfly, including bearish technical momentum and a Nasdaq delisting threat, contributing to a cautious outlook on the stock. Dragonfly Energy is known for its lithium battery technology and energy storage solutions, operating under its Battle Born Batteries® brand and focusing on domestic lithium battery cell production.