Flux Power amends Gibraltar Business Capital loan pact, remains in default
FLUX•Loan amendment adds equity raise requirement and tighter controls
- Flux Power Holdings entered Amendment No. 7 to its loan and security agreement with Gibraltar Business Capital, effective Sept. 17, 2026.
- The new covenant requires an equity sale raising at least USD 4 million in net proceeds within 50 days.
- The lender gained tighter reporting controls; material budget deviations trigger an immediate event of default.
- The parties plan to revise the EBITDA minimum covenant within 90 days, while the company remains in default.
- Gibraltar kept revolving credit access available, while reserving rights to cut off borrowing and accelerate repayment; the amendment fee totals USD 135,000.
