Overview

Dragonfly Energy Holdings Corp (NASDAQ: DFLI) announced that it has acquired substantially all operating assets of the Dakota Lithium brand for a total consideration of $4 million. The purchase price comprises $1 million in cash and $3 million in Dragonfly Energy common stock priced at $2.00 per share, resulting in the issuance of 1,500,000 shares that are subject to a twelve‑month contractual lock‑up. The acquisition was disclosed on 31 July 2026 and immediately triggered a 12 % decline in Dragonfly Energy’s share price.

Financial Details of the Target

Dakota Lithium generated approximately $12 million of net revenue in fiscal year 2025, a decline from prior years attributed to working‑capital constraints and inventory shortages that limited product availability.

Expected Contribution and Strategic Rationale

Dragonfly Energy expects the Dakota Lithium assets to begin delivering meaningful revenue and to be accretive to Adjusted EBITDA in the fourth quarter of 2026, supporting the company’s goal of achieving positive Adjusted EBITDA in that period. The deal expands Dragonfly’s presence in marine, outdoor recreation, powersports, golf‑cart and other specialty battery markets. The acquired brand will be operated as a distinct entity alongside Battle Born Batteries, leveraging Dragonfly’s existing commercial, operational, fulfillment and customer‑support infrastructure.

Debt Covenant Amendments

Concurrent with the transaction, Dragonfly’s lenders agreed to amend certain debt terms, including a reduction in the minimum cash covenant and permission for interest payments to be made in kind for the next two quarters. These amendments are projected to preserve roughly $1 million of near‑term liquidity.

Management Commentary

Dr. Denis Phares, Chief Executive Officer of Dragonfly Energy, stated that supporting the Dakota Lithium brand through existing infrastructure will restore product availability, reconnect with customers and enable efficient growth, and that the acquisition is expected to help achieve positive Adjusted EBITDA in Q4 2026.

Acquired Assets

The assets transferred include the Dakota Lithium brand, related intellectual property, product inventory, a complementary battery portfolio, and established customer and distributor relationships.