Chardan NextTech 2 (CNTQ) Shareholders Approve Dragonfly Energy Deal
Chardan NextTech Acquisition 2 Corp. (NASDAQ:CNTQ) announced in a press release this afternoon that its shareholders approved its combination with energy storage firm Dragonfly Energy at a special meeting held earlier today.
Over 99.9% of the votes cast at today’s meeting were in favor of the merger. CNTQ disclosed yesterday that it received requests to redeem 79.4%, or 2,071,910, of its shares, but the SPAC also saw 9,556,652 shares redeemed during its August extension vote, bringing the total to 91.93%.
Based off of yesterday’s redemption numbers, $31,430,584.81 will be removed from CNTQ’s trust account, leaving it with approximately $10,565,137.34 and 1,021,438 shares.
As a refresher, Chardan NextTech 2 recently secured a $75 million loan with CCM Investments 5 LLC, an affiliate of Chardan Capital Markets, and EICF Agent LLC, and a $15 million stock purchase agreement with THOR Industries.
The SPAC did not provide further details on the closing timeline of the deal, but it is expected to close shortly. Upon closing, the combined company will trade on the Nasdaq under the ticker symbol “DFLI”.
Chardan NextTech 2 announced its $500 million business combination with Dragonfly 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.
- Stifel, Nicolaus & Company, Incorporated is serving as financial advisor.
- O’Melveny & Myers, LLP and Parsons Beble & Latimer are serving as legal counsel to Dragonfly.
- Chardan is serving as financial advisor, Stifel and Chardan are acting as joint placement agents, Skadden, Arps, Slate, Meagher & Flom LLP and Brownstein Hyatt Farber Schreck, LLP are serving as legal counsel to CNTQ.
- Energy Impact Partners is serving as lead arranger of the senior secured term loan.
- Chapman and Cutler LLP is serving as legal counsel to Energy Impact Partners.