Dragonfly Energy entered into a Limited Waiver and Eighth Amendment to its senior secured term loan to address near-term liquidity issues. The agreement waives testing of the minimum liquidity covenant for the month ending September 30, 2026.
The waiver also covers any default related to deferring part of the October 1 cash dividend on the company’s Series B preferred stock. In exchange, Dragonfly will pay lenders a $450,000 amendment fee in kind, which will be added to the loan’s principal balance.
The measure is intended to give the company more operational flexibility as it manages cash flow.