Dragonfly Energy tumbles on deep-discounted $25 mln stock offering

Canaccord Genuity

06/10/2025 12:49

** Shares of lithium battery supplier Dragonfly Energy DFLI.O down 27.5% to $1.38 premarket after $25 mln follow-on offering prices at steep discount

** Reno, Nevada-based firm DFLI announces 20 mln shares at $1.25, about 34% discount to stock's last close

** Co intends to use net proceeds for working capital and general purposes, including repayment of $4 mln under term loan agreement, and investments in next-gen battery technologies

** Canaccord Genuity sole bookrunner for offering

** DFLI has ~61.8 mln shares outstanding as of Oct 3, per the prospectus, giving co roughly $117 mln market cap through Fri

** Shares had more than tripled in past two sessions, leaving them down 32% YTD through Fri

** DFLI went public in Oct 2022 after it completed merger with SPAC Chardan NexTech Acquisition 2 Corp

** All 3 analysts covering DFLI rate the stock "buy" with median PT of $1, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))