Flux Power stock jumped, then faded, after its board rejected Solidion's cash proposal on October 2, 2026

Flux Power Holdings (FLUX) said at 8:31 a.m. ET on Friday, October 2, 2026 that its board had unanimously rejected an unsolicited, non-binding acquisition proposal from Solidion Technology (STI). The stock stood 8.098% above its $0.41 reference level at the one-minute mark and 18.8% above it by the close of the next minute. The gain did not last: ten minutes after the announcement the stock was 6.27% below the reference level.

A rejected takeover approach usually takes a premium out of the share price, but Solidion had offered none. Its proposal, published two days earlier as an open letter to Flux Power shareholders, was described as all cash, named no price per share, and stated that the eventual price would likely be lower than Flux Power's closing price on September 28, 2026.

What Solidion proposed to Flux Power

1. September 30, 2026: Solidion announced a plan to acquire Flux Power and issued an open letter to its shareholders. The letter said Flux Power's board and management had already turned the approach down in private.
2. September 30, 2026: Solidion chief executive Jaymes Winters argued that shareholders deserved a choice between "money now and little or no money later", and compared the offer with a $4 million financing facility that he said would dilute existing shareholders at the current share price.
3. October 2, 2026: Flux Power said its board, after a review with its legal advisors, concluded that the proposal substantially undervalues the company and does not serve shareholders' interests.

The proposal was non-binding and subject to due diligence and financing. Solidion reported about $27.7 million of cash and cash equivalents at June 30, 2026, after a private placement completed that month. Its filings before that placement had carried a going-concern warning.

The numbers Solidion used against Flux Power

Solidion built its case on Flux Power's fiscal 2026 results, for the year ended June 30, 2026.

These figures explain why a bidder felt able to go public with an offer under the market. A company with that little cash generally needs outside capital, and at a share price well under a dollar new equity is expensive for existing owners. Solidion's argument was that a below-market cash exit would still be worth more than the shares after such a financing.

Flux Power also has a listing problem. Nasdaq notified the company on July 24, 2026 that its bid price had closed below the $1.00 minimum for 30 consecutive business days. The company has 180 calendar days from that notice to regain compliance, and the shares continue to trade on the Nasdaq Capital Market in the meantime.

Why did Flux Power stock rise after rejecting Solidion?

Once Solidion's letter was public, the market had a named acquirer telling shareholders that the business was worth less than its quoted price. The letter worked as a ceiling on the price. A shareholder weighing the stock on October 1 had to consider that the only visible bid pointed lower.

The board's statement took that reference point away and put a different one in its place. Flux Power said the proposal substantially undervalues the company, and it listed operating changes: fiscal fourth-quarter operating expenses down 33% from a year earlier, certification with a new major equipment manufacturer, a refreshed sales leadership team, and the launch of its SkyEMS 3.0 software. The company said a leaner cost structure positions it to return to growth and move toward profitability.

The rejection did not change the balance sheet. Flux Power's release did not announce new funding, and the Nasdaq bid-price deadline still runs from the July notice. In the first minutes of trading the low public bid was off the table and the board was on record that its standalone plan is worth more than Solidion's cash. Within ten minutes the stock had given back that gain, with the funding and listing questions unchanged.