Dragonfly Energy converts $25M term loan into Series B Preferred Stock

Dragonfly Energy Holdings Corp.

• Issued $25M Series B Preferred (stated value $1,000/share) in exchange for $25M principal of Term Loan.
• Preferred convertible at $3.15/share, yielding up to ~7.94M common shares; subject to 4.99% ownership cap.
• 10% annual dividend, payable quarterly: 80% cash, 20% paid-in-kind; ranks senior to all other stock.
• Company may redeem at Optional Redemption Price; mandatory 50% of future equity offering net proceeds toward redemption.
• Holders can force redemption if not redeemed by Oct 7, 2027 or upon non-payment event.