Flux Power Amends Loan Agreement, Must Raise $4M in 50 Days or Face Default
FLUX sits 17% above its 52-week low of $0.47 on light trading volume (0.3× avg).
Summary
Flux Power amended its loan agreement with Gibraltar Business Capital, requiring a $4 million equity raise within 50 days or immediate default. The company remains in default and GBC has reserved all remedies.
Key Events · Legal and Risk Events · FLUX
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Loan Amendment Requires $4M Equity Raise
Amendment No. 7 to the Loan and Security Agreement with Gibraltar Business Capital requires Flux Power to complete a sale of equity interests generating at least $4.0 million in net proceeds within 50 days of September 17, 2026. Failure to do so is an immediate Event of Default with no cure or grace period.
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Company Remains in Default
Flux Power remains in default under the Loan and Security Agreement. GBC has allowed continued access to the revolving credit facility but has reserved all rights to terminate the facility, accelerate all obligations, and seize collateral at any time.
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Weekly Budget Compliance with Strict Thresholds
The amendment imposes weekly budget reporting with Material Budget Deviation thresholds: actual sales and cash receipts must be at least 80% of projections, and cash disbursements no more than 110% of projections. Any deviation is an immediate Event of Default.
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$135,000 Non-Refundable Amendment Fee
Flux Power agreed to pay a non-refundable amendment fee of $135,000 in three installments: $45,000 due September 17, 2026, $45,000 due October 17, 2026, and $45,000 due November 16, 2026.
Analysis · FLUX · Manufacturing
Flux Power entered into Amendment No. 7 to its Loan and Security Agreement with Gibraltar Business Capital on September 17, 2026. The amendment requires the company to complete a sale of equity interests generating at least $4.0 million in net proceeds within 50 days — a hard deadline with no cure period. Failure to do so constitutes an immediate Event of Default. The company remains in default under the existing loan agreement, and GBC has reserved all rights to terminate the revolving credit facility, accelerate all obligations, and seize collateral at any time. The amendment also imposes weekly budget compliance reporting with strict variance thresholds (sales and cash receipts must be at least 80% of projections, cash disbursements no more than 110%), where any material deviation is an immediate Event of Default. A non-refundable $135,000 amendment fee is payable in three installments. This filing confirms the company's survival now hinges on raising $4 million in equity within 50 days while already in default and facing a Nasdaq delisting notice.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 36.3% of the 1065 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.57%. 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, FLUX was trading at $0.55 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $11.9M. The 52-week trading range was $0.47 to $7.55. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.