Flux Power received more time to meet a lender-required equity raise, while also facing a Nasdaq listing deficiency tied to its negative stockholders’ equity. The battery-systems maker must now raise at least $4 million in net equity proceeds by Dec. 4 under its amended loan agreement with Gibraltar Business Capital, and plans to submit a separate plan to Nasdaq to regain compliance with the exchange’s minimum-equity rule.
The deadlines and requirements are distinct: the lender extension does not itself resolve the Nasdaq deficiency. Flux says it is evaluating financing options, but has not assured it can complete the raise or restore listing compliance.
Key details
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Lender deadline extended: Gibraltar agreed to move the deadline for Flux to complete an equity sale generating at least $4 million in net proceeds from Nov. 6 to Dec. 4. The extension is effective as of Nov. 6.
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Other loan terms unchanged: The extension does not alter the remaining terms of the loan agreement. Flux said it is evaluating financing opportunities but gave no assurance it can meet the new deadline or obtain another extension.
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Nasdaq cited a stockholders’ deficit: The exchange notified Flux that its reported stockholders’ deficit of $431,000 put it below the $2.5 million minimum stockholders’ equity required to remain listed on the Nasdaq Capital Market.
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Plan due Dec. 24: Flux has until Dec. 24 to submit a plan to regain compliance and says it intends to do so. If Nasdaq accepts the plan, it may grant the company up to 180 days from the Nov. 9 notice to demonstrate compliance.
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Further process if needed: If Nasdaq rejects the plan, or Flux does not meet the requirement within an approved extension, the company would have the right to request a hearing before an independent panel. A hearing request would pause suspension or delisting action while the hearing process and any additional extension run their course.
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Trading continues for now: The notice does not immediately affect the listing or trading of Flux common stock, which continues to trade on Nasdaq under the symbol FLUX. Flux said it intends to take reasonable steps to regain compliance, but did not assure that it will succeed or meet all other listing requirements.
What changes for investors
Flux now has until Dec. 4 to satisfy the lender’s $4 million equity-raise condition, while separately beginning Nasdaq’s process for addressing its stockholders’ equity shortfall. The stock remains listed and trading, but the company’s ability to complete the financing and regain compliance is unresolved.