Dragonfly Energy Holdings Corp. announced that it has entered into a Settlement and Mutual Release Agreement with the holder of its Series A Convertible Preferred Stock, par value $0.0001 per share, eliminating all outstanding shares of the Series A Preferred Stock and associated common stock issuance obligations.
Under the terms of the agreement, Dragonfly Energy will issue 2,100,000 shares of the company’s common stock, par value $0.0001 per share, in exchange for the surrender of all outstanding shares of Series A Preferred Stock. The transaction satisfies in full the company’s obligations under the Series A Preferred Stock and related agreements.
“This settlement completes the resolution of the remaining outstanding shares of Series A Preferred Stock,” said Dr. Denis Phares, chief executive officer. “By eliminating the risks related to the number of conversion shares and dividend obligations associated with the Series A Preferred Stock, we believe we have successfully improved our capital structure and have enhanced our financial flexibility, while removing potential future dilution concerns. We believe this strategic move will position us to better focus our resources on driving growth and achieving profitability.”
The shares of common stock are being sold and issued without registration under the Securities Act in reliance on the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended.
