Shares of Solidion Technology tumbled 11.2% to $5.47 on October 2, erasing nearly a week of gains, after Flux Power's board unanimously rejected Solidion's unsolicited acquisition proposal — a stark rebuke that strips the small battery-materials company of its clearest near-term catalyst. Solidion's Flux Power Bid Blows Up — Can a Micro-Cap With Almost No Revenue Afford to Play Acquirer?
Shares of Solidion Technology cratered 11.2% to $5.47 on October 2 after Flux Power's board unanimously rejected its unsolicited, all-cash takeover bid, exposing the fragility of a growth-by-acquisition strategy at a company with almost nothing to show on the top line.
The Deal Was Dead on Arrival — And the Market Punished the Bidder
Flux Power announced its board unanimously rejected the non-binding proposal, which Solidion had made public on September 30.
The board concluded, after consulting legal advisors, that the proposal "substantially undervalues" Flux Power. Notably, Solidion itself had conceded that its indicative price would likely fall below Flux's September 28 closing price after balance-sheet adjustments — a remarkable admission that telegraphed weakness. STI stock had already slipped from $6.68 to $6.16 over the prior three sessions as skepticism built.
A $57 Million Company Chasing a Turnaround Target It Can't Easily Afford
Solidion's market cap stood at roughly $53.6 million as of October 1 , and its trailing twelve-month revenue was just $219,690 with an operating margin of roughly negative 96,786%.
It reported approximately $27.7 million in cash as of June 30, 2026. Meanwhile, Flux Power's fiscal 2026 revenue was $42.1 million — down 37% — with a $6.5 million operating loss and $7.4 million net loss. Solidion was essentially trying to buy a company many times its own revenue size, raising obvious questions about financing and dilution risk for STI shareholders.
Flux Power Thinks It Has Better Options — And That Emboldens the Rejection
Flux Power cut operating expenses by 33% year-over-year in its fiscal fourth quarter, earned certification with a new major equipment manufacturer, and launched a new AI-driven fleet management platform.
It also entered the robotics market through a collaboration with a large global technology company.
Flux Power shares actually surged 22.7% on the rejection news , a clear signal the market believes Flux is better off alone.
What Happens Next Could Define Solidion's Identity
Solidion CEO Jaymes Winters said the company "remains open to dialogue," urging shareholders to weigh immediate cash versus an uncertain future. But with the company also having announced plans to buy SpaceX shares and a Bitcoin treasury policy — neither of which have been executed — investors are left wondering whether Solidion is a battery-materials business or a holding company in search of a thesis. The 11.2% single-day drop suggests the market wanted this deal more than management may have realized.