Flux Power Stock Plummets On Q1 Outlook, Supply Chain Challenges

Flux Power Holdings Inc (NASDAQ:FLUX) has entered into securities purchase agreements with several institutional investors for 2.14 million common shares and warrants to buy up to an aggregate of 1.07 million shares at a purchase price of $7 per share and associated warrant.
The company expects the direct offering to close on or about September 27, 2021.
Flux Power anticipates gross proceeds to be ~$15 million. It intends to use the net proceeds for general corporate and working capital purposes.
Earlier, the company reported Q4 and FY21 results, with Q4’21 revenue of $8.3 million (+33% year-over-year); and an FY’21 revenue increase of 56% Y/Y to $26.3 million.
The gross margin expanded by 350 bps to 21% in Q4 and expanded by 910 bps to 22.1% for FY21.
For Q1, Flux Power anticipates Y/Y growth but a lower growth quarter than the prior two quarters. The company also expects the continued impact from supply chain challenges but with a gradual recovery.
Price Action: FLUX shares are trading lower by 20.2% at $6 on the last check on Thursday.

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