Chardan NexTech Acquisition 2 said its registration statement on Form S-4, relating to the proposed business combination with Dragonfly Energy has been declared effective by the SEC.
The SPAC scheduled a shareholder vote on the deal for Oct. 6. If approved, Dragonfly shares and warrants would trade on the Nasdaq under new ticker symbols DFLI and DFLIW.
Dragonfly is engaged in energy storage and production of deep cycle lithium-ion storage batteries.
The business combination values Dragonfly at an implied $500 million pro forma enterprise value. Terms include an earn-out provision for up to an additional 40 million shares.
As announced in May, estimated cash proceeds are expected to consist of the SPAC’s approximately $128 million of 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 sponsor Chardan NexTech Investments 2, and a $150 million Chardan Equity Facility from Chardan, an affiliate of the SPAC’s sponsor. Read more.
