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Energy Storage Firm Dragonfly Energy to Publicly List on NASDAQ Through Merger with SPAC.

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Vincent

MANews-(C)2009-2022

US-based deep cycle lithium-ion storage batteries developer Dragonfly Energy Corp and special purpose acquisition company Chardan NexTech acquisition 2 Corp (NASDAQ: CNTQ) have inked a definitive agreement for a business combination that will result in Dragonfly becoming a publicly listed company, the companies said.

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."

Dragonfly has created lithium-ion batteries equipped with a proprietary battery management system that are currently used in recreational vehicles, marine vessels, material handling, and off-grid residences and solar applications.

Sold direct-to-consumers under the Battle Born Batteries brand and to original equipment manufacturers, such as Keystone RV, a subsidiary of Thor Industries (NYSE: THO), and Midwest Automotive, a subsidiary of REV Group (NYSE: REVG), under the Dragonfly Energy brand, Dragonfly generated USD 78m of revenue and nearly USD 9m 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 USD 115m and USD 255m, respectively, and 2022 and 2023 adjusted EBITDA forecasts of USD 12m and USD 41m, respectively.

CNTQ believes that an investment in Dragonfly presents a compelling opportunity at a 32% discount to its peers' 2023 revenue multiples.

Dragonfly said it plans 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 and chief executive officer, Dr...

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