FLUX Jumps After Board Unanimously Rejects Solidion’s Unsolicited Bid as “Substantially” Undervaluing the Company

Flux Power’s rejection sets the tone: the Board says the offer “substantially undervalues” FLUX

Flux Power Holdings, Inc. (NASDAQ:FLUX) said its Board of Directors unanimously rejected an unsolicited, non-binding acquisition proposal announced by Solidion Technology, Inc. (NASDAQ:STI) on September 30, 2026. According to Flux Power, the Board’s conclusion—reached after a comprehensive review with legal advisors—was that the proposal “substantially undervalues” Flux Power and is not in the best interests of the company and its shareholders.

The market reaction was positive during market hours: as of 10:26 AM, FLUX traded at $0.46, up $0.05 (13.02%).

Management is framing the decision around a FY 2027 profitability push and operational overhaul

Alongside the rejection, Flux Power emphasized it is focused on executing a strategy to reposition the company toward a path to profitability. The company pointed to extensive operational changes under a new management team that it expects to benefit FY 2027 and beyond, including lowering product and operating costs, improving operating efficiencies, enhancing its supply chain to improve margins, refreshing sales leadership, expanding OEM relationships, and launching marketing programs aimed at diversifying the customer base.

Early momentum is the key datapoint: Flux says Q4 operating expenses fell 33% year over year

Flux highlighted what it described as “early momentum” in its 2026 fiscal fourth quarter, including a 33% reduction in operating expenses versus the 2025 fiscal fourth quarter. It also cited certification with a new major OEM (expanding its addressable market within electric material handling) and a platform update with the launch of AI-driven SkyEMS® 3.0, which it says further positions Flux as a differentiated technology provider.

Growth narrative broadens beyond material handling: Flux points to S Series “white label” strategy and Robotics entry

Flux also laid out “new avenues for growth,” including a plan to use its S series as an anchor product to approach new OEMs and dealership networks by offering white label solutions. The company said it entered a new vertical—Robotics—in collaboration with a “large global technology company,” adding that it has “clear visibility into potential future demand.”

Macro expectations matter: Flux is betting easing headwinds lift demand while lithium-ion gains share

In the release, Flux stated it expects to capitalize on “growing pent-up demand” as macroeconomic headwinds ease. It also said it believes lithium-ion will become the dominant battery technology in the coming years, framing that shift as a potentially significant market opportunity as it builds a scalable framework.

Financing and partnerships remain a central variable as Flux evaluates paths to maintain “financial flexibility”

Flux said that, in addition to the operational strategy, the Board is evaluating potential financing paths and strategic partnerships to ensure the company has the flexibility needed to continue executing its plan. The forward-looking statements section also underscores risks tied to funding and liquidity, including access to its credit facility and the ability to secure sufficient funding to support operations.

What to watch next: the bid outcome may hinge on whether FLUX’s operating improvements continue into FY 2027

With the Board publicly rejecting Solidion’s unsolicited proposal on valuation grounds, the next signposts will likely be execution: whether cost reductions and supply-chain improvements translate into better margins, whether OEM certifications and expanded relationships convert into predictable demand, and whether new verticals like Robotics progress from collaboration to material revenue contribution. Flux’s message is clear: it believes internal improvements and market tailwinds justify a higher valuation than what the rejected proposal implied.

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