Elong Power Holding Ltd. has announced a significant warrant inducement agreement that aims to enhance its financial position. The company is reducing the exercise price of existing warrants and issuing new warrants to existing holders. This strategic move is designed to improve liquidity and strengthen the company’s capital structure.

On November 5, 2026, Elong Power entered into an inducement offer letter agreement with certain warrant holders. This agreement relates to warrants that allow the purchase of up to 1,147,541 Class A ordinary shares issued on May 18, 2026, and others issued on July 13 and August 4, 2026. The current exercise price for these warrants was $3.80 per share.

As part of the agreement, the warrant holders have agreed to partially exercise 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. Additionally, the company will issue new unregistered warrants to purchase up to 2,713,204 Class A ordinary shares at an exercise price of $2.50 per share.

The new warrants are immediately exercisable and will expire three years from their issuance date. They also include provisions for downward adjustments in the event of certain share transactions, ensuring that the exercise price remains competitive.

Elong Power Holding expects to raise approximately $3.26 million from the partial exercise of the existing warrants. The company plans to use the net proceeds for working capital and general corporate purposes. Following this transaction, the total number of Class A ordinary shares issued and outstanding will be 2,738,344.

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

This move comes as part of a broader strategy to strengthen Elong Power's financial health amid the competitive landscape of the electrical machinery industry. Companies in this sector may look to similar financial maneuvers to enhance their capital structures and improve liquidity.

Elong Power has filed the necessary registration statements for the resale of the existing warrants and the Class A ordinary shares that may be issued upon their exercise. This filing will help facilitate the transaction and ensure compliance with regulatory requirements.

Details regarding the next steps following this filing were not specified. However, the company is expected to continue engaging with its investors and stakeholders as it implements this strategic financial move.