Why Did Dragonfly Energy Shares Jump Over 6% After Hours?

Dragonfly Energy Holdings Corp. (NASDAQ:DFLI) saw its stock climb 6.73% in after-hours trading on Thursday, reaching $1.42.

Check out the current price of DFLI stock here.

The American lithium battery technology company announced the pricing of an underwritten public offering of 36 million shares of common stock at $1.35 each, along with pre-funded warrants for up to 5 million shares at $1.3499 per warrant.

The offering is expected to generate roughly $55.4 million in gross proceeds before deducting underwriting discounts and commissions.

Q3 Sales Growth Precedes Offering

Dragonfly Energy Holdings also reported its preliminary third-quarter net sales of $16.0 million on Monday, representing 26% year-over-year growth.

Debt Prepayment Plans Outlined

Dragonfly Energy intends to use the net proceeds from the offering to prepay $45 million in outstanding debt under its term loan agreement as part of a proposed debt restructuring, according to a press release issued by the company on Thursday.

Canaccord Genuity (TSE: CF) is acting as the sole bookrunner, while Roth Capital Partners is serving as co-manager.

The offering is expected to close on Friday.

Capital Allocation Plans

Additional proceeds will be used for working capital and general corporate purposes, including investments aimed at boosting near-term revenue and advancing next-generation battery technologies.

These efforts include scaling the dry electrode process and developing solid-state battery applications. The underwriters have a 30-day option to purchase up to 6.15 million additional shares.

Patent Allowance Received

Dragonfly Energy Holdings also announced Wednesday that the U.S. Patent and Trademark Office (USPTO) has issued a Notice of Allowance for a patent application tied to its Dragonfly IntelLigence battery communication technology.

CEO Dr. Denis Phares stated the patent “represents a major step forward in connected battery technology.”

Stock Performance

The Nevada-based company has seen a year-to-date loss of 52.16%, despite gaining 114.52% over the past six months. The stock has traded between $0.15 and $5.78 over the past 52 weeks. The company currently has a market capitalization of $112.79 million, with an average daily trading volume of about 57.28 million shares.

Price Action: DFLI closed at $1.33 on Thursday, down 32.49% for the day, according to Benzinga Pro data.

With a strong Momentum in the 88th percentile, Benzinga’s Edge Stock Rankings indicate that DFLI has a positive price trend across all time frames. Know how its momentum lines up with other well-known names.