Solidion argues that Flux Power faces an existential need for capital, warning that the target company’s reliance on dilutive equity financing and private placements will only erode shareholder value. According to Solidion, the target requires at least $10 million in fresh capital to stabilize, a threshold they contend is best met through an acquisition rather than continued market-based fundraising.

Beyond capital constraints, Flux Power remains under pressure from NASDAQ regarding its minimum bid price. Following a notice issued on July 24, 2026, the company faces a ticking clock to regain compliance, with the prospect of a reverse stock split creating further risk of share price decay. Solidion maintains that a combined entity would be better equipped to navigate these listing issues and macroeconomic headwinds, including supply chain tariff exposure, than Flux could manage independently. While Solidion continues to scout other growth opportunities, it insists that Flux shareholders deserve full transparency regarding the risks of maintaining the current, uncertain turnaround strategy.