Chardan NextTech 2 (CNTQ) Adds $15M to Dragonfly Deal
by Marlena Haddad on 2022-07-12 at 10:17am

Chardan NextTech Acquisition 2 Corp. (NASDAQ:CNTQ) announced this morning that it has added $15 million to its business with energy storage firm Dragonfly Energy.

The new money comes in the form of a Stock Purchase Agreement with THOR Industries, Inc. whereby for $15 million in cash, THOR purchased 1,267,502 shares of Dragonfly common stock. And as part of the investment, THOR and Dragonfly will enter into a commercial arrangement pursuant to which THOR and certain affiliates will transition to lithium-ion batteries manufactured and sold by Dragonfly. Additionally, Dragonfly will grant certain board observer rights to THOR.

CNTQ brings $128.4 million into the deal from its current trust along with a $230 million PIPE consisting of $75 million senior secured term loan, which will be used in part to refinance approximately $45 million of outstanding Dragonfly indebtedness, a $5 million PIPE at $10.00 per share from CNTQ’s Sponsor, Chardan NexTech Investments 2 LLC, and a $150 million Chardan Equity Facility from Chardan, an affiliate of the sponsor.

The SPAC announced its $500 million business combination with Dragonfly just a few months ago on May 16. Reno, Nevada-based Dragonfly creates lithium-ion batteries equipped with a proprietary battery management system that are currently used in recreational vehicles (RVs), marine vessels, material handling, off-grid residences and solar applications.

 

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