Renovacor, Inc. executed a non-binding letter of intent to acquire Chardan Healthcare Acquisition 2 Corp. (AMEX:CHAQ) in a reverse merger transaction on January 11, 2021. Renovacor, Inc. entered into a definitive agreement to acquire Chardan Healthcare Acquisition 2 Corp. (AMEX:CHAQ) in a reverse merger transaction for $85.2 million on March 22, 2021. Under the terms of the proposed transaction announced today, CHAQ will issue 6.5 million shares to current securityholders of Renovacor. Current Renovacor stockholders may also receive up to 2.0 million earn out shares (“Company Earn Out Shares”): 0.6 million shares if the share price exceeds $17.5 by the end of calendar year 2023, 0.6 million shares if the share price exceeds $25 by the end of calendar year 2025, and 0.8 million shares if the share price exceeds $35 by the end of calendar year 2027. Furthermore, CHAQ's sponsor Chardan agreed to shift 0.5 million of its founder shares to earn out shares (“Sponsor Earn Out Shares”), subject to same terms as Company Earn Out Shares. The Combined Company is expected to receive gross proceeds of up to $116 million, funded by approximately $86 million held in CHAQ's trust account (assuming no redemptions are effected) and a common stock PIPE of $30 million at $10 per share. Current securityholders of Renovacor are estimated to own approximately 42% of the issued and outstanding securities in the Combined Company at closing (excluding ownership of the Company Earn Out Shares and Sponsor Earn Out Shares). Upon closing of the transaction, CHAQ will be renamed Renovacor, Inc. and its common stock is expected to be listed on NYSE under the ticker symbol “RCOR” (the “Combined Company”). Post-closing, it is anticipated that Magdalene Cook, along with Thomas Needham of Broadview Ventures and three individuals designated by the Renovacor, will sit on the board of directors along with Chardan Healthcare Acquisition 2 Corp's Chief Executive Officer Jonas Grossman and Gbola Amusa on the seven-person board of directors of the Combined Company. The Combined Company will be led by President and Chief Executive Officer Magdalene Cook, M.D. Jonas Grossman is President and Managing Partner at Chardan. Amusa is a Director and head of research at Chardan Capital Markets.

Completion of the transaction is subject to approval of CHAQ and Renovacor's stockholders, minimum cash condition, Registration Statement effectiveness, Ancillary Agreements, the transactions shall have been approved for listing on NYSE, Resignations of directors and executive officers and the satisfaction or waiver of certain other customary closing conditions. The boards of directors of both Renovacor and CHAQ have unanimously approved the proposed transaction. As of September 1, 2021, Chardan Healthcare shareholders approved the transaction. The transaction had been previously approved by Renovacor stockholders. The transaction is expected in the second quarter of 2021. As of August 19, 2021, the transaction is expected to complete in the third quarter of 2021. As of September 1, 2021, the transaction is expected to complete on September 2, 2021. Chardan is acting as the M&A advisor and Placement Agent for CHAQ. Ryan Maierson, Charles Ruck, Lisa Watts, Adam Perlman, Stuart Kurlander, Michelle Carpenter, Betty Pang, Alyssa Lattner and Elizabeth Richards of Latham & Watkins LLP acted as legal advisors to CHAQ. Rachael Bushey, Jennifer Porter and Kristen O'Connor of Troutman Pepper Hamilton Sanders LLP, and Andrew Hamilton of Morgan Lewis & Bockius LLP acted as legal counsels for Renovacor. Ryan Maierson and Charles K. Ruck of Latham & Watkins LLP acted as a partner to the Transaction. Continental Stock Transfer & Trust Company acted as transfer agent to CHAQ. Morrow & Co., LLC acted as legal advisor to Chardan and will receive a fee of $27,500 for its services.