Dragonfly Energy Eliminates Series A Preferred Stock In Exchange For 2.1M Common Shares, Ending Related Obligations

Dragonfly Energy Holdings Corp. ("Dragonfly Energy" or the "Company") (NASDAQ:DFLI), an industry leader in energy storage and battery technology, today announced that it has entered into a Settlement and Mutual Release Agreement (the "Agreement") with the holder of its Series A Convertible Preferred Stock, par value $0.0001 per share (the "Series A Preferred Stock"), eliminating all outstanding shares of the Series A Preferred Stock and associated common stock issuance obligations.

Under the terms of the Agreement, Dragonfly Energy will issue 2,100,000 shares of the Company's common stock, par value $0.0001 per share, in exchange for the surrender of all outstanding shares of Series A Preferred Stock. The transaction satisfies in full the Company's obligations under the Series A Preferred Stock and related agreements.