Table of Contents
- New Credit Facility Announcement
- Benefits of the Credit Facility
- Testimonials and Appreciation
- About Gibraltar Business Capital
- About Flux Power Holdings, Inc.
VISTA, CA —August 3, 2023 — Flux Power Holdings, Inc. (NASDAQ: FLUX), a leading developer of advanced lithium-ion energy storage solutions for the electrification of commercial and industrial equipment, is pleased to announce the securing of a new $15.0 million credit facility with Gibraltar Business Capital (“GBC”). This facility will play a crucial role in funding working capital and refinancing Flux Power’s existing credit facility with Silicon Valley Bank (“SVB”).
New Credit Facility Announcement
Gibraltar Business Capital, an industry leader in asset-based lending for middle-market businesses, has established itself as a trusted partner by offering customized credit solutions and collaborating with private equity and financial partners. The new credit facility is designed to meet Flux Power’s working capital needs while also facilitating the repayment of its existing facility with SVB. The interest rate on the facility is tied to the Secured Overnight Financing Rate (“SOFR”) plus 5.50% per annum.
Benefits of the Credit Facility
This credit facility, which is secured by the company’s existing assets, will mature on July 28, 2025, with no warrants attached. Flux Power has the option to increase the facility to $20.0 million, subject to GBC’s approval. The company has also forged a partnership with Bank of America for cash management and operational banking services.
Chuck Scheiwe, Chief Financial Officer of Flux Power, expressed his satisfaction with the new financing partnership, stating, “GBC is a reliable financing partner to help increase our borrowing power and access to capital. This facility, along with our existing cash reserves, is crucial for funding our planned operations and meeting the demands of our aggressive growth trajectory.” Scheiwe also expressed gratitude for the assistance of Bank of America in implementing this facility.
Testimonials and Appreciation
Ron Dutt, Chief Executive Officer of Flux Power, emphasized the favorable terms of the new credit facility, asserting that it enhances the company’s borrowing capacity and provides greater financial flexibility for internal initiatives and future growth. Dutt considers this development an important milestone in Flux Power’s long-term growth objectives, aiming to create sustainable, long-term value for shareholders.
Scott Winicour, CEO of Gibraltar Business Capital, expressed his pleasure in providing Flux Power with a reliable and flexible working capital solution. Winicour acknowledged the goal of Flux Power to drive the adoption of clean, safe, and innovative energy solutions and considered it an honor to be selected as their strategic financing partner.
About Gibraltar Business Capital
Gibraltar Business Capital, headquartered in Chicago, is a well-capitalized specialty finance company that delivers working capital through asset-based loans ranging from $5 to $100 million. With over 70 years of experience, Gibraltar has established itself as an expert financial partner for mid-market companies, providing access to capital to solve challenges and fuel growth at any stage of the business lifecycle.
About Flux Power Holdings, Inc.
Flux Power (NASDAQ: FLUX) is a leading designer, manufacturer, and seller of advanced lithium-ion energy storage solutions for various industrial and commercial sectors, including material handling, airport ground support equipment (GSE), and stationary energy storage. With a focus on superior performance, lower cost of ownership, and environmental sustainability, Flux Power’s lithium-ion battery packs, equipped with their proprietary battery management system (BMS) and telemetry, offer customers a compelling alternative to traditional lead-acid and propane-based solutions. These lithium-ion battery packs not only reduce CO2 emissions but also contribute to improving sustainability and ESG metrics for fleets.