UPDATE - Bannix Acquisition Corp. Clarifies Position on Excise Tax and Rational for Extension Periods
Bannix Acquisition Corp. (NASDAQ: BNIX) clarified its intentions regarding excise tax liabilities related to redemptions, following uncertainty from the Inflation Reduction Act of 2022. The Company assured that it will not withdraw amounts from its Trust Account for these liabilities, as the Sponsor will indemnify it against such taxes. The Board aims to propose a Business Combination to shareholders within nine months and will start preliminary steps within three months, pending regulatory reviews. The Company continues to maintain funds in an interest-bearing account to safeguard shareholder interests.
- Sponsor indemnifies the Company against excise tax liabilities, protecting shareholder funds.
- Board plans to propose a Business Combination within nine months, indicating progress.
- Funds remain in an interest-bearing account, ensuring liquidity for future initiatives.
- Potential delays in regulatory review could affect the timeline for the Business Combination.
WEST HOLLYWOOD, Calif., March 06, 2023 (GLOBE NEWSWIRE) -- Bannix Acquisition Corp. (NASDAQ: BNIX) (the “Company”) today announced that it is further clarifying its and Instant Fame, LLC (the “Sponsor”) intent with respect to the excise tax liabilities associated with any redemptions. To clarify the language in the prior press release dated March 1, 2023, to mitigate the current uncertainty surrounding the implementation of the Inflation Reduction Act of 2022, in the event that the extension (the “Extension”) of the time period the Company has to complete an initial business combination (the “Business Combination”) is implemented, as described in the Company’s definitive proxy statement (the “Proxy Statement”), the Sponsor or a designee will indemnify the Company against any excise tax liabilities with respect to any redemption opportunities. As such, the Company will not, under any circumstances, withdraw any amounts from the Trust Account, including interest earned on the Trust Account, to pay for the Excise Tax. As previously stated, if the Extension is implemented, the Company plans to maintain the remaining amount in its trust account in an interest-bearing demand deposit account at a bank.
The Company’s Board of Directors (“Board”), which, except for one (1) director, have only served as directors since late October 2022, is undertaking to submit a proposed Business Combination to its shareholder for approval within the next nine (9) months. The potential extension to the Extended Date, as defined in the Proxy Statement is needed for the time required to have each of the applicable regulators review the disclosure related to the Business Combination and ultimately have such Business Combination approved by the shareholders of the Company. The Board will use its reasonable best efforts to take the initial steps in presenting a potential Business Combination within the next three (3) months.
About Bannix Acquisition Corp.
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.
Participants in the Solicitation
The Company and its directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from the Company’s stockholders in respect of the Extension. Information regarding the Company’s directors and executive officers is available in its annual report on Form 10-K filed with the SEC. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests are contained in the Proxy Statement.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Additional Information
The Company has filed the Proxy Statement with the Securities and Exchange Commission (the “SEC”) in connection with the Meeting and, beginning on December 2, 2022, mailed the Proxy Statement and other relevant documents to its stockholders as of the November 17, 2022 record date for the Meeting. The Company’s stockholders and other interested persons are advised to read the Proxy Statement and any other relevant documents that have been or will be filed with the SEC in connection with the Company’s solicitation of proxies for the Meeting because these documents will contain important information about the Company, the Extension and related matters. Stockholders may also obtain a free copy of the Proxy Statement, as well as other relevant documents that have been or will be filed with the SEC, without charge, at the SEC’s website located at www.sec.gov or by directing a request to Morrow Sodali LLC at (800) 662-5200 (toll free) or by email at BNIX.info@investor.morrowsodali.com.
Forward-Looking Statements
This press release and oral statements made from time to time by representatives of the Company may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this press release are forward-looking statements. When used in this press release, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions, as they relate to the Company or its management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in the Company’s filings with the SEC. All subsequent written or oral forward-looking statements attributable to the Company or persons acting on its behalf are qualified in their entirety by this paragraph. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and prospectus for the Company’s initial public offering filed with the SEC. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Contacts:
Bannix Acquisition Corporation
Doug Davis, CEO
(323) 682-8949
doug.davis@bannixacquisition.com
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