Flux Power Holdings, Inc., a developer of advanced lithium-ion energy storage solutions for electrification of commercial and industrial equipment, has renewed the available credit under its existing facility with Silicon Valley Bank, a division of First Citizens Bank (“SVB Facility”), of $14.0 million to support higher working capital requirements related to increased customer demand.
“First Citizens Bank is a top-tier financial institution, and we are pleased to now be partnering with them on our revolving line of credit,” said Chuck Scheiwe, Chief Financial Officer of Flux Power. “This renewal, along with our existing cash, is intended to meet our anticipated capital resources to fund planned operations.”
Ron Dutt, Chief Executive Officer of Flux Power, added, “Our strong purchase orders, improving backlog and expansion of margins through improved sourcing and supply chain management, and operational process improvement is leading us toward our near-term goal of profitability. Combined with a recent successful showcase of our full product line at Promat 2023, the material handling and logistics industry’s premier global event, I have never been more confident about the future and long-term shareholder value of Flux Power.”
On March 10, 2023, the Federal Deposit Insurance Corporation (the “FDIC”) issued a press release stating that Silicon Valley Bank (“SVB”) was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. On March 26, 2023, the Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association, by First Citizens Bank & Trust Company, Raleigh, North Carolina. On March 27, 2023, the 17 legacy Silicon Valley Bridge Bank, N.A. branches began operating as Silicon Valley Bank, a division of First Citizens Bank.
The Company’s other available financing resources include: (i) the previously disclosed $5 million Credit Facility Agreement, dated May 11, 2022, by and among the Registrant and Cleveland Capital, L.P., a Delaware limited partnership, Herndon Plant Oakley, Ltd., and other lenders, which remains unused; and (ii) the Company’s At-the-Market (ATM) facility.