Dragonfly Energy Holdings Corp. announced a private placement of 1 unsecured convertible promissory note in the principal amount of $1,700,000 at a price of $1,700,000 for the gross proceeds of $1,700,000 to individual investor Brian Nelson on February 27, 2024. The note became due and payable in full on March 1, 2024.

The company was obligated to pay $85,000 to the holder on March 1, 2024. Subject to certain conditions, the company had the option to repay the balance of the note with any combination of cash and shares of common stock at a price not less than $0.55 per share. The note issued is pursuant to Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended.