Shares of Dragonfly Energy Holdings (NASDAQ: DFLI) are plunging today, down more than 25% as of 10:45 a.m. ET. The sharp move lower came after the battery supplier unveiled in an SEC filing that certain security holders intended to sell shares and stock warrants they held. 

Dragonfly Energy Holdings filed a prospectus on behalf of certain security holders to sell up to 38.6 million shares of its common stock, 16.7 million warrants to purchase common stock, and 16.7 million shares issued upon the exercise of stock warrants. 

These shares and warrants were issued to investors in the company as part of its business combination with a special purpose acquisition company (SPAC), Chardan NexTech Acquisition 2 Corp, which closed in October. The transaction provided the company with $250 million of capital, including a private strategic investment by Thor Industries. That transaction gave Dragonfly Energy the capital to accelerate its business and commercialize its all-solid-state battery technology. 

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Source Fool.com