Dragonfly Energy Secures Waivers on Liquidity Covenant and Preferred Dividend, Pays $450K PIK Fee
DFLI is trading near its 52-week low of $0.8 (6.3% above the low).
Summary
Dragonfly Energy amended its term loan and obtained a preferred dividend waiver to avoid covenant and dividend defaults, paying a $450,000 PIK fee and deferring part of its Series B cash dividend.
Key Events · Financing and Capital Events · DFLI
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Liquidity Covenant Waived for September
Lenders waived testing of the minimum liquidity covenant solely for the fiscal month ending September 30, 2026, avoiding a potential default.
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$450K Amendment Fee Added to Debt
Company pays a $450,000 amendment fee paid-in-kind by adding it to the outstanding term loan principal balance.
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Preferred Dividend Deferred
Series B Preferred holders waived the full October 1 cash dividend; company pays 2% per annum by October 1 and 6% per annum by October 30, with PIK dividends continuing at 2%.
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Avoids Defaults, Preserves Cash
The waivers prevent a covenant breach and a preferred dividend default, but the PIK fee and deferred dividends increase obligations and signal continued cash constraints.
Analysis · DFLI · Manufacturing
Dragonfly Energy obtained limited waivers from its term loan lenders and Series B Preferred holders to avoid a covenant breach and a preferred dividend default. The lenders waived the minimum liquidity covenant test for September 2026 and any default from deferring part of the October 1 preferred dividend. In exchange, the company pays a $450,000 amendment fee added to loan principal, and the preferred holders agreed to a modified dividend schedule: 2% per annum by October 1 and 6% per annum by October 30, with PIK dividends continuing at 2%. This is a liquidity-preservation move that avoids an immediate default but increases debt and defers cash obligations — a sign of continued cash pressure despite the going-concern alleviation reported in August.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 29.5% of the 1629 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.59%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, DFLI was trading at $0.85 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $12.7M. The 52-week trading range was $0.80 to $26.10. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.