Dragonfly Energy SPAC Presentation Deck
Risk Considerations (4/5)
Risks Related to Ownership of CNTQ Securities and the Business Combination (Cont'd)
Our Sponsor, directors or officers or their affiliates may elect to purchase shares from public stockholders, which could reduce the number of shares that may be redeemed in
connection with the Business Combination and reduce the public "float" of CNTQ common stock.
The unaudited pro forma financial information included elsewhere in this presentation may not be indicative of what New Dragonfly's actual financial position or results of
operations would have been.
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CNTQ and Dragonfly have incurred and expect to incur significant costs associated with the Business Combination. Whether or not the Business Combination is completed, the
incurrence of these costs will reduce the amount of cash available to be used for other corporate purposes by CNTQ if the Business Combination is not completed.
A provision in CNTQ's Warrant Agreement may make it more difficult for CNTQ to consummate the Business Combination.
Our ability to successfully effect the Business Combination and to be successful thereafter will be dependent upon the efforts of certain key personnel, including the key
personnel of Dragonfly whom we expect to stay with the post-combination business following the Business Combination. The loss of key personnel could negatively impact the
operations and profitability of our post-combination business and its financial condition could suffer as a result.
CNTQ and Dragonfly will be subject to business uncertainties and contractual restrictions while the Business Combination is pending.
The ability of CNTQ's public stockholders to exercise redemption rights with respect to a large number of shares of CNTQ's Class A common stock could reduce the amount of
working capital available to New Dragonfly upon the closing of the Transaction and could adversely affect the completion of the Transaction.
Recently, there have been changes to the accepted accounting for special purpose acquisition companies ("SPACs"). Changes in the accepted accounting related to SPACS may
result in the recognition of accounting errors in previously issued financial statements, restatements of previously issued financial statements, the filing of notices that
previously issued financial statements may not be relied upon, notices from stock exchanges that CNTQ or New Dragonfly is not in compliance with continued listing standards
and findings of material weaknesses and significant deficiencies in internal controls over financial reporting. In addition, such changes could delay or have a material adverse
effect on CNTQ's and Dragonfly's ability to consummate the Transaction.
CONFIDENTIAL | 45View entire presentation