"Solidion strongly disagrees with the Flux Power Board's assertion that its proposal 'significantly undervalues' the company," said Jaymes Winters, Chairman and CEO of Solidion Technology. "This offer takes into account the capital and execution required to stabilize the business, and Solidion has no intention of increasing its offer at this time."

Winters continues, "Solidion is and always will be an opportunistic acquirer of companies it believes will complement and amplify its existing technology. In doing so, we will be resolute custodians of our shareholder value and not seek opportunities that are overpriced, beyond repair or not related to Solidion's growth strategy. We will continue to pursue other prospects in parallel with FLUX."

In Solidion's opinion:

Flux Power still faces an immediate need for capital, resulting in highly discounted equity issuance: Private placements, equity lines of credit or other highly dilutive capital facilities used in this distressed manner (which may have been utilized on 10/02/2026) will only accelerate the loss of shareholder value. If the Board believes that its strategy offers greater shareholder value, Solidion believes that shareholders deserve to know how much additional capital will be required, where it will come from, and what it could cost existing shareholders.
In order to meet their stated objectives, Flux Power requires, at minimum, $10 million in fresh capital: In order to achieve this without substantial shareholder dilution, the only alternative financing path is an acquisition of Flux by a stronger company.
Flux Power continues to face NASDAQ listing pressure: On July 24, 2026, Flux Power received notice from NASDAQ that its common stock had closed below the $1.00 minimum bid price for 30 consecutive business days, providing an initial 180-day period to regain compliance. Additionally, in the event that a reverse stock split becomes necessary, the post-stock split decay risk has historically resulted in a 20-40% decline in the price per share.
Changing macroeconomic winds remain a significant risk: Flux Power's expectations for easing headwinds overlook continued uncertainty in the macroeconomic environment, particularly with regard to the significant tariff exposure facing its supply chain. In order to overcome these challenges, a company with a strong balance sheet is far better suited to weather macroeconomic uncertainties.
Solidion believes that Flux Power shareholders should be given the transparency and information necessary to make an informed assessment of the condition of Flux's ability to continue as a going concern, and deserve a clear choice between an acquisition that provides a large degree of certainty or continuing to fund a turnaround whose ultimate cost, dilution, and outcome remain critically uncertain.