RENO – October 29, 2026 -- Dragonfly Energy Holdings Corp. (Nasdaq: DFLI) has completed the $4.0 million acquisition of substantially all operating assets of the Dakota Lithium brand, which it expects to turn accretive to Adjusted EBITDA in the fourth quarter of 2026.
Dakota Lithium generated about $12 million in 2025 revenue despite supply constraints
Based on historical financial information provided to Dragonfly, Dakota Lithium booked approximately $12 million in net revenue in 2025. That was significantly below prior-year levels, as working-capital limitations and inventory constraints materially reduced product availability.
The acquired assets include the brand and related intellectual property, product inventory, a complementary battery portfolio, and customer and distributor relationships. The deal extends Dragonfly's reach across marine, outdoor recreation, powersports, golf cart and other specialty battery markets.
Dragonfly pays $1.0 million in cash and $3.0 million in locked-up stock
The equity portion consists of 1,500,000 common shares valued at $2.00 each, a premium to recent trading levels. The shares carry a 12-month contractual lock-up and were issued under a Securities Act exemption without registration. The structure limits upfront cash needs while the operations are integrated.
Lenders cut minimum cash covenant and allow two quarters of paid-in-kind interest
In connection with the deal, Dragonfly's existing lenders agreed to reduce the minimum cash covenant. They also agreed that interest for the next two quarters will be paid in kind rather than in cash. The company expects the amendments to preserve approximately $1 million of near-term liquidity.
Dragonfly will run Dakota alongside Battle Born Batteries on existing infrastructure
Dragonfly plans to operate Dakota Lithium as a distinct brand next to Battle Born Batteries. It will use its existing commercial, operational, fulfillment and customer-support infrastructure, which management says avoids a proportional increase in fixed overhead. The company expects the multi-brand approach to reach additional customer segments and price points.
CEO Denis Phares said restoring product availability and reconnecting with customers is the core of the plan, and that the acquisition supports the company's goal of positive Adjusted EBITDA in the fourth quarter of 2026.
An affiliate of Resolution Financial Advisors LLC facilitated the transaction.