Bannix Acquisition Corp. Announces Monthly Extension to Complete its Initial Business Combination
WEST HOLLYWOOD, Calif., March 14, 2023 (GLOBE NEWSWIRE) -- Bannix Acquisition Corp. (“Bannix”) announced today that its board of directors (the “Board”) has decided to extend the date by which Bannix must consummate an initial business combination (the “Deadline Date”) from March 14, 2023 for an additional month, to April 14, 2023.
As previously disclosed, at a special meeting of its stockholders held on March 8, 2023, Bannix’s stockholders voted in favor of a proposal to amend Bannix’s Amended and Restated Certificate of Incorporation (as amended, the “Amended Charter”) to provide Bannix with the right to extend the Deadline Date up to 12 times for an additional one month each time (the “Extension”), from March 14, 2023 to up to March 14, 2024. On March 9, 2023, Bannix filed the Amended Charter with the Secretary of State of the State of Delaware.
Also as previously announced, if an Extension is implemented, the sponsor of Bannix, Instant Fame LLC (the “Sponsor”), or its designees will deposit into the trust account, as a loan, the lesser of (x) $75,000 and (y) $0.07 for each share that is not redeemed in connection with the special meeting.
In connection with the initial Extension, on March 13, 2023, Bannix issued an unsecured promissory note to the Sponsor with a principal amount equal to $75,000 (the “Note”). The Note bears no interest and is repayable in full upon the earlier of (a) the date of the consummation of Bannix’s initial business combination, or (b) the date of the liquidation of Bannix. If Bannix does not cosummate an initial business combination by the Deadline Date, the Note will be repaid only from funds held outside of the trust account or will be forfeited, eliminated or otherwise forgiven.
On March 13, 2023, the Board, at the request of the Sponsor, decided to implement a first Extension and to extend the Deadline Date for an additional month to March 14, 2023.
Bannix Acquisition Corp. is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities.