Flux Power Holdings, a developer of lithium-ion energy storage solutions for the electrification of commercial and industrial equipment, entered into a $2 million subordinated line of credit facility with Cleveland Capital, which includes a duration to Aug. 15, 2025.
In conjunction with entering into the new facility, Flux Power cancelled its existing $5 million subordinated LOC. Subject to the subordination provisions of the new facility, the entire principal amount and all unpaid accrued interest shall be due and payable on Aug. 15, 2025. Interest shall accrue on each advance at SOFR plus 9% per annum. The accrued but unpaid interest on the advances, if any, shall be payable on the due date in cash.
The new credit facility follows a $15 million credit facility Flux Power entered into with Gibraltar Business Capital in July. The Gibraltar facility’s term goes to July 20, 2025, and the facility has no warrants and can be expanded to $20 million. The facility refinanced Flux Power’s existing credit facility with Silicon Valley Bank.
