Chardan NexTech Acquisition 2 in a regulatory filing included an investor presentation highlighting its proposed merger with Dragonfly Energy.
The SPAC is seeking a deadline extension for closing the deal.
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.
The deal is still expected to close in the second half of 2022, with the combined company listing on the Nasdaq.
Dragonfly is engaged in energy storage and production of deep cycle lithium-ion storage batteries.
As announced in May, estimated cash proceeds are expected to consist of CNTQ’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 CNTQ’s sponsor, Chardan NexTech Investments 2, and a $150 million Chardan Equity Facility from Chardan, an affiliate of the SPAC’s sponsor. Read more.
