Flux Power Holdings Enters Loan Amendment, Must Raise $4M

What Happened
Flux Power Holdings, Inc. (FLUX) and its subsidiary entered Amendment No. 7 to their Loan and Security Agreement with Gibraltar Business Capital, LLC, effective September 17, 2026. The amendment requires the company to complete a sale of equity interests that yields net proceeds of at least $4.0 million within 50 days of the effective date, deliver updated projections, budgets and compliance reports to GBC, and amend the EBITDA covenant within 90 days. Flux remains in default under the loan agreement; GBC has allowed continued access to the revolver but has reserved rights to stop funding, accelerate repayment, and exercise other secured remedies.

Key Details

• Required equity raise: net proceeds of at least $4.0 million within 50 days of September 17, 2026.
• Reporting and controls: must provide projections, budgets and compliance reports; material deviations from budgets can trigger immediate default.
• Covenant change: EBITDA minimum covenant to be amended within 90 days of the effective date.
• Fees and payments: non‑refundable amendment fee of $135,000 payable in three cash installments of $45,000 on 9/17/2026, 10/17/2026 and 11/16/2026.
• Default status: despite the amendment, the company remains in default and GBC reserved all remedies available under the loan.

Why It Matters
This amendment highlights near‑term liquidity and covenant pressure: Flux must raise substantial equity (at least $4.0M) quickly or risk lender actions. The new reporting and stricter budget compliance raise the chance of an event of default if results deviate from plans. For investors, key items to watch are whether the equity raise closes, any changes to the EBITDA covenant, continued access to the revolver, and cash impact from the amendment fees and potential dilution from a financing.