Dragonfly Energy Holdings Corp. (NASDAQ:DFLI), a manufacturer in the miscellaneous electrical machinery sector, announced the execution of a one-for-nine reverse stock split of its issued and outstanding common stock. The action took effect today, with shares beginning to trade on a split-adjusted basis on the Nasdaq Capital Market under the unchanged ticker symbol "DFLI".
The reverse stock split was approved by the company's board of directors on November 11, 2024, following authorization from stockholders at the annual meeting on November 12, 2024. The stockholders had granted the board the discretion to determine the exact split ratio within a range of one-for-five to one-for-twenty. The board settled on a one-for-nine ratio.
In practical terms, every nine shares of Dragonfly Energy's common stock have been consolidated into one share. The adjustment was applied uniformly to all shareholders and did not affect any shareholder's percentage interest in the company, except for the rounding up of fractional shares to the nearest whole number. This means no fractional shares were issued, and any fractional shares resulting from the split were rounded up.
The reverse stock split did not alter the par value of the common stock or the authorized number of shares. However, it necessitated an adjustment to all outstanding securities that provide the right to purchase or acquire common stock, such as stock options and warrants.
The company's CUSIP number for the common stock has changed to 26145B 304 following the reverse stock split. The authorized capital stock of the company remains unchanged.
This report is based on a press release statement and the Certificate of Amendment filed with the Secretary of State of Nevada.
In other recent news, Dragonfly Energy Corp. has experienced a series of significant developments. The company's Third Quarter 2024 Earnings Call revealed a decrease in net sales to $12.7 million from $15.9 million the previous year, and a reduction in its net loss. However, the company expanded its portfolio by entering the heavy-duty trucking sector and announced plans to launch the Dragonfly Intelligence system in the fourth quarter of 2024.
Canaccord Genuity, an independent investment dealer, adjusted its price target on shares of Dragonfly Energy, reducing it to $1.25 from $1.50, while still recommending a Buy rating on the stock. The revision was due to concerns over the pace of recovery in the recreational vehicle (RV) market and slower customer uptake in the heavy-duty trucking sector.
Despite the current market conditions, Canaccord Genuity expressed optimism about Dragonfly Energy's potential to revolutionize battery manufacturing economics. The firm also emphasized the need for a strategic capital infusion to accelerate Dragonfly Energy's plans. These are just a few of the recent developments at Dragonfly Energy.
InvestingPro Insights
The recent reverse stock split by Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) comes at a challenging time for the company, as reflected in several InvestingPro metrics and tips. The company's market capitalization stands at a modest $23.2 million, indicating its small-cap status. This move may be an attempt to maintain Nasdaq listing requirements and potentially improve investor perception.
InvestingPro data shows that DFLI's revenue for the last twelve months as of Q3 2024 was $48.87 million, with a concerning revenue growth decline of -34.1% over the same period. This aligns with an InvestingPro Tip suggesting that analysts anticipate a sales decline in the current year.
The company's financial health appears precarious, with InvestingPro Tips highlighting that DFLI operates with a significant debt burden and may have trouble making interest payments. This is particularly concerning given that the company is not profitable over the last twelve months and is quickly burning through cash.
The stock's performance has been notably poor, with InvestingPro data showing a -61.83% price total return over the past six months. This is corroborated by an InvestingPro Tip indicating that the stock has taken a big hit over the last six months.
Investors considering DFLI should note that InvestingPro offers 17 additional tips for this stock, providing a more comprehensive analysis of the company's financial situation and market position.
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