Elong Power Holding Limited priced a new public offering of 21,700,000 units on February 26 2026 at $0.3231 per unit, a total of $7.0 million in gross proceeds before underwriting discounts and other expenses. The offering is expected to close on February 27 2026 and will provide the company with a critical liquidity cushion as it faces ongoing cash‑flow challenges and Nasdaq compliance pressures.
The company plans to deploy the proceeds for general corporate purposes and working capital, to expand its sales network—including hiring sales personnel and developing regional channels—and to increase production capacity through new equipment and facility upgrades. The financing is intended to shore up the balance sheet, support operational initiatives, and demonstrate to regulators and investors that Elong Power is actively addressing its financial distress.
Elong Power’s financial performance has deteriorated sharply in recent years. In 2024 the company reported revenue of $386,940, a decline of 87.77% from $3.16 million in 2023, and a net loss of $30.11 million, a 304.4% increase in losses. Operating cash flow was negative $2.8 million for FY2024, and the operating margin collapsed to –7,526.2% from –251.2% the prior year. Gross margin for the trailing twelve months was –1,001.36%, underscoring the severity of the company’s profitability decline.
Elong Power has a history of Nasdaq compliance issues. The company received non‑compliance notices for minimum bid price requirements in October 2025 and again in March 2025, and it regained compliance with the minimum bid price rule in January 2026. The company’s low stock price and ongoing need for capital raises heighten the risk of delisting, making the new offering a key step in maintaining Nasdaq listing status.
Investors have reacted skeptically to previous capital raises. After a $7.6 million offering priced on February 2 2026, the stock plunged 91.6%, and a $7.6 million offering on February 5 2026 saw a 17.94% decline. The steep discount of $0.3231 per unit relative to the earlier $3.16 per unit offering signals a deteriorating market perception and raises concerns about dilution and the company’s ability to generate sustainable cash flow.
The new offering provides a short‑term liquidity cushion but also dilutes existing shareholders, as each unit consists of one Class A ordinary share and one common warrant. Management’s focus on expanding sales channels and upgrading production capacity reflects an attempt to reverse the revenue decline, but the company’s deep losses and negative cash flow suggest that the financing will be a temporary measure unless operational improvements materialize. Investors will likely monitor the company’s ability to convert the capital infusion into improved earnings and to maintain Nasdaq compliance in the coming months.
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