Flux Power Stock Plummets On Q1 Outlook, Supply Chain Challenges

Flux Power Holdings Inc 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.