Elong Power Holding Ltd. has taken significant steps to improve its financial standing by entering into an inducement offer agreement with warrant holders. This agreement allows the company to exercise existing warrants while reducing the exercise price, which is expected to enhance liquidity and strengthen its capital structure.

On November 5, 2026, Elong Power Holding Ltd. entered into an agreement to exercise Ordinary Shares Purchase Warrants with certain warrant holders. This agreement involves warrants that allow the purchase of up to 1,147,541 Class A ordinary shares issued on May 18, 2026, 1,684,213 Class A ordinary shares issued on July 13, 2026, and 362,108 Class A ordinary shares issued on August 4, 2026, all originally priced at $3.80 per share.

As part of the agreement, the warrant holders will partially exercise their existing warrants to purchase 1,808,803 Class A ordinary shares. In return, Elong Power will reduce the exercise price of all existing warrants to $1.80 per share and issue new unregistered warrants to purchase up to 2,713,204 Class A ordinary shares at an exercise price of $2.50 per share. This issuance is part of a private placement under the Securities Act of 1933.

The new warrants will be immediately exercisable and will expire three years from their issuance date. The exercise price and the number of shares issuable under the new warrants will be adjusted in the event of certain transactions involving the Class A ordinary shares, including stock dividends or share splits.

Elong Power Holding anticipates that the gross proceeds from the partial exercise of the existing warrants will amount to approximately $3.26 million, which will be used for working capital and general corporate purposes. Following this transaction, the company will have 2,738,344 Class A ordinary shares outstanding.

The company has engaged Maxim Group LLC as the exclusive warrant solicitation agent and financial advisor for this exercise, agreeing to pay a fee equal to 5% of the gross proceeds received from the partial exercise of the existing warrants.

This strategic move reflects Elong Power Holding's commitment to enhancing its financial flexibility in a competitive market. The company plans to file a resale registration statement within 30 days for the new warrants and the Class A ordinary shares issuable upon their exercise.

The filing does not specify what happens next, but the proactive steps taken by Elong Power Holding may encourage other companies in the miscellaneous electrical machinery sector to explore similar strategies to optimize their capital resources.