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Flux Power Announces Capital Structure Update Including New Credit Facility with Cleveland Capital
VISTA, Calif.--(BUSINESS WIRE)-- Flux Power Holdings, Inc. (NASDAQ: FLUX), a developer of advanced lithium-ion energy storage solutions for electrification
About this update from Flux Power Holdings, Inc.
[{"type":"text","content":" VISTA, Calif.--(BUSINESS WIRE)--\nFlux Power Holdings, Inc. (NASDAQ: FLUX), a developer of advanced lithium-ion energy storage solutions for electrification of commercial and industrial equipment, today announced a new credit facility with Cleveland Capital L.P. (“CCLP”) and provided an update on its capital structure.\n\n\nThe Company has taken the following recent actions to strengthen its capital structure:\n\n\n\nSecured a $15 million credit facility with Gibraltar Business Capital (“GBC”) with a term to July 28, 2025, with no warrants, that can be expanded to $20 million.\n\n\n\n\nEntered into a new $2 million subordinated credit facility with Cleveland Capital, L.P. (“CCLP”) which includes a duration to August 15, 2025.\n\n\n\n\nTerminated an at-the-market (“ATM”) offering program.\n\n\n\n\nFiled a universal shelf registration statement on Form-3, which became effective on October 6, 2023, having a three-year term to provide flexibility with respect to capital structure.\n\n\n\nNew $15.0 Million Gibraltar Business Capital Credit Facility\n\n\nOn July 28, 2023, the Company secured a new $15.0 million credit facility from GBC to fund working capital and to refinance its existing credit facility with Silicon Valley Bank. The $15.0 million credit facility is designed for working capital requirements. The facility is secured by the existing assets of the Company, matures on July 28, 2025, and includes no warrants. The agreement allows the Company to increase the facility to $20.0 million at the Company’s request subject to approval by GBC. The Company has also chosen to work with Bank of America for cash management and other operational banking services.\n\n\nCleveland Capital L.P. Subordinated Line of Credit Facility\n\n\nOn November 2, 2023, the Company entered into a new $2.0 million Subordinated LOC agreement with CCLP with a duration to August 15, 2025, and cancelled the existing $5.0 million Subordinated LOC. Subject to the subordination provisions, the entire principal amount and all unpaid accrued interest shall be due and payable on August 15, 2025. Interest shall accrue on each Advance at the Secured Overnight Financing Rate plus nine percent per annum. The accrued but unpaid interest on the Advances, if any, shall be payable on the due date in cash.\n\n\nAt-The-Market Offering – Terminated on October 5, 2023\n\n\nOn...