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- Dragonfly has entered into a definitive business combination agreement with Chardan NexTech Acquisition 2 Corp. (Nasdaq: CNTQ); upon closing, the combined company will be listed on the Nasdaq under the new ticker DFLI.
- Dragonfly has produced 17 quarters of profitability.
- The combined company is expected to be valued at approximately $500 million.
- Dragonfly intends to use the proceeds from the transaction to accelerate the market penetration of its existing business and commercialize its proprietary and patented All-Solid-State-Battery technology that will dramatically reduce reliance on the power grid.
Dragonfly Energy Corp., a leader in energy storage and producer of deep cycle lithium-ion storage batteries, and Chardan NexTech Acquisition 2 Corp. (“CNTQ”) (Nasdaq: CNTQ), a publicly-traded special purpose acquisition company, announced an agreement for a business combination that will result in Dragonfly becoming a publicly listed company. Upon closing of the transaction, the combined company will be renamed Dragonfly Energy and is expected to be listed on the Nasdaq under the new ticker symbol “DFLI.”
Creating a New Standard for Environmentally Impactful Energy Storage
Dragonfly has created state-of-the-art lithium-ion batteries equipped with a proprietary battery management system that are currently used in RVs, marine vessels, material handling, and off-grid residences and solar applications.
Sold direct to consumers under the Battle Born Batterie brand and to OEMs—such as Keystone RV—under the Dragonfly Energy brand, Dragonfly generated $78 million of revenue and nearly $9 million of adjusted EBITDA in 2021, both representing an 80+% CAGR since 2018. As Dragonfly penetrates new and existing markets, the Company anticipates continued growth with 2022 and 2023 revenue forecasts of $115 million and $255 million, respectively, and 2022 and 2023 adjusted EBITDA forecasts of $12 million and $41 million, respectively.
Dragonfly intends to use a portion of the proceeds raised from this transaction to accelerate the development and commercialization of its revolutionary All-Solid-State-Battery technology. All-Solid-State-Batteries are non-flammable and are designed to allow for efficient, distributed energy storage that enables renewables to be cost-competitive with fossil fuels while further stabilizing the power grid.
Dragonfly Co-Founder, Chairman & Chief Executive Officer, Dr. Denis Phares, and the current management team are expected to continue to lead the combined company.
Dr. Phares said: “CNTQ shares our vision for providing the safe and cost-effective distributed storage solution required for our renewable energy future and supports our unique customer-centric approach to technology and innovation. This transaction will help us grow our core business and facilitate the development and large-scale deployment of our All-Solid-State-Battery technology.”
Jonas Grossman, Chief Executive Officer and Director of CNTQ, added, “As an innovator in the battery space, Dragonfly can transform distributed energy storage with the growth and commercialization of its All-Solid-State-Battery technology. We are excited to support the team as they become a public company.”