Flux Power Holding Inc. (NASDAQ:FLUX) stock is trading lower Monday after Solidion Technology Inc. (NASDAQ:STI) said it will not increase its acquisition proposal, calling the bid its “best and final” offer.
According to Benzinga Pro, Flux Power shares were down Monday as investors weighed the escalating takeover dispute.
Solidion Stands Firm on Offer
Solidion on Monday pushed back against Flux Power’s board, which unanimously rejected the unsolicited, nonbinding proposal on Friday. The board said the offer substantially undervalued Flux Power and was not in shareholders’ best interests.
Solidion said it sees no reason to raise the offer. CEO Jaymes Winters said the proposal already accounts for the capital and execution needed to stabilize Flux Power. The company said it plans to pursue other acquisition opportunities in parallel.
Solidion also pointed to Flux Power’s financing needs. It estimated the company requires at least $10 million in fresh capital and warned that private placements or other financing could significantly dilute existing shareholders.
Liquidity, Nasdaq Risks in Focus
Solidion first disclosed its acquisition interest on Sept. 30. At the time, it highlighted Flux Power’s deteriorating financial position.
Fiscal 2026 revenue fell about 37% to $42.1 million, while the company posted a $7.4 million net loss and about $5.9 million in negative operating cash flow. Flux Power ended the fiscal year with about $300,000 in cash.
Solidion also said Flux Power remained in default under its Gibraltar Business Capital credit agreement. A Sept. 18 amendment requires Flux Power to raise at least $4 million in equity capital within 50 days.
Meanwhile, Flux Power faces Nasdaq compliance pressure after its stock closed below the $1 minimum bid price for 30 consecutive business days. The company received an initial 180-day period to regain compliance.
Flux Power has defended its standalone strategy, citing lower costs, improved operating efficiency, expanded OEM relationships and new growth initiatives. The board is also evaluating financing options and strategic partnerships to support that plan.
Price Action: Flux Power Holdings shares were down 14.64% at $0.54 and Solidion Tech shares were down 0.19% at $5.30 at the time of publication on Monday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
