Chardan NexTech Acquisition 2 in a regulatory filing said merger partner Dragonfly entered into a stock purchase agreement with THOR Industries. THOR purchased 1,267,502 shares of Dragonfly common stock for $15 million.
THOR and Dragonfly will enter into a commercial arrangement under which THOR and some of its affiliates will transition to lithium-ion batteries manufactured and sold by Dragonfly, while Dragonfly will grant certain board observer rights to THOR.
In addition to this fresh funding, estimated cash proceeds when the deal was announced in May are expected to consist of the SPAC’s approximately $128 million cash in trust (assuming no redemptions) and an additional $230 million consisting of $75 million senior secured term loan (used in part to refinance approximately $45 million of outstanding Dragonfly indebtedness), a $5 million equity investment from CNTQ’s sponsor, Chardan NexTech Investments 2, and a $150 million Chardan Equity Facility from Chardan, an affiliate of CNTQ’s sponsor.
The transaction also includes an earn-out provision for up to an additional 40 million shares.
Chardan late last month filed a prelim proxy asking shareholders for a three-month deadline extension to complete the deal. Read more.
