Flux Power Holdings, Inc. announced that it has entered into a security purchase agreement for the issuance of subordinated unsecured promissory note for $2,000,000 on November 2, 2023. The transaction will include participation from returning lender Cleveland Capital, L.P., a fund managed by Cleveland Capital Management, LLC. The note accrues interest at secured overnight financing rate plus nine percent (9%) per annum on each advance from and after the date of disbursement of such advance with a maturity date of August 15, 2025.

The company agreed to issue the Lender warrants to purchase 41,196 shares of common stock which rights are represented by a warrant certificate. Subject to certain ownership limitations, the Warrants are exercisable immediately from the date of issuance, expire on the five-year anniversary of the date of issuance and have an exercise price of $3.24 per share.