1. DFLI announces a 1-for-10 reverse stock split effective December 18, 2025. 2. The split reduces outstanding shares from 120.8 million to 12.1 million. 3. CEO highlights the split as necessary for Nasdaq compliance and growth. 4. Recent capital raises have improved liquidity and financial stability for DFLI. 5. The reverse split maintains stockholder equity percentage, reducing fractional shares.
FAQ
Why Bullish?
Reverse stock splits can attract institutional investors by increasing share price. Historically, companies like Tesla have seen positive price movements post-split.
How important is it?
The reverse split is significant for compliance and future capital raising, impacting investor perception.
Why Short Term?
The immediate impact will be felt as shares adjust; however, long-term growth depends on execution of growth strategy.
Dragonfly Energy Executes 1-For-10 Reverse Stock Split
RENO, Nev., Dec. 16, 2025 (GLOBE NEWSWIRE) -- Dragonfly Energy Holdings Corp. (Nasdaq: DFLI), a leader in energy storage and battery technology, has announced a 1-for-10 reverse stock split of its outstanding common stock. This decision, effective December 18, 2025, aims to enhance compliance with Nasdaq requirements while positioning the company for future growth.
Details of the Reverse Stock Split
Under the terms of the reverse stock split, each ten shares of pre-split common stock will convert into one share of post-split common stock. The company will retain its par value of $0.0001 per share, and the authorized number of shares will remain unchanged. Notably:
- The reverse stock split will reduce the number of shares outstanding from approximately 120.8 million to 12.1 million.
- No fractional shares will be issued. Instead, stockholders will receive cash for any fractional shares resulting from the split.
- The adjustment will also affect common stock related to outstanding warrants and stock options.
Purpose and Approval of the Stock Split
Dr. Denis Phares, CEO of Dragonfly Energy, stated, “This reverse stock split is a technical step to maintain Nasdaq compliance and position the Company for its next phase of growth.” He emphasized that recent capital raises and debt restructuring have significantly bolstered the company's balance sheet and liquidity. With a solid financial foundation, Dragonfly Energy aims to scale revenue, foster strategic partnerships, and advance in battery technologies.
The reverse stock split was approved by a majority of shareholders at the company’s Annual Meeting held on October 15, 2025. The decision was made by the board of directors on December 2, 2025, under the provision of a proposal that allowed for a ratio between 1-for-2 and 1-for-50.
Investor Guidance and Next Steps
Equinity Trust Company, LLC will serve as the exchange and transfer agent for the reverse stock split. Stockholders with shares in book-entry form or brokerage accounts do not need to take any action. However, beneficial holders are advised to reach out to their respective banks, brokers, or custodians for any procedural inquiries.
About Dragonfly Energy
Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) specializes in lithium battery technology, focusing on cell manufacturing, battery pack assembly, and system integration. Through its well-known Battle Born Batteries® brand, the company has emerged as a key player in the lithium battery market, with a robust presence across various sectors including electric vehicles and energy storage systems. Dragonfly Energy is committed to advancing its proprietary, nonflammable, all-solid-state battery cells, contributing to clean energy technologies.
Forward-Looking Statements
This announcement contains forward-looking statements as defined by the United States Private Securities Litigation Reform Act of 1995, including statements about the company’s future operations and growth potential. These statements are subject to risks and uncertainties that could cause actual results to differ significantly. Factors include those detailed in the company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other SEC filings available at www.sec.gov.