Bannix Acquisition Corp. Announces Monthly Extension to Complete its Initial Business Combination

Rhea-AI Summary

Bannix Acquisition Corp. announced that its board of directors has extended the deadline for completing its initial business combination from November 14, 2024 to December 14, 2024. This extension is part of a previously approved amendment allowing up to six one-month extensions until March 14, 2025. For each extension, the sponsor Instant Fame will deposit into the trust account a loan of either $25,000 or $0.05 per non-redeemed share, whichever is less. This marks the twenty-first extension of the deadline.

Positive

• None.

Negative

• Continued need for deadline extensions suggests difficulties in completing the business combination
• Additional loans required for each extension may increase company debt

Insights

Financial Analyst

This SPAC extension announcement represents a routine administrative update with minimal immediate market impact. The key points to note: Bannix Acquisition Corp is extending its business combination deadline by one month to December 14, 2024, with the sponsor required to deposit up to $25,000 or $0.05 per unredeemed share into the trust account. This is part of their previously approved ability to extend up to six times until March 2025.

The extension suggests ongoing negotiations or due diligence with potential merger targets, though no specific target has been announced. For SPAC investors, these extensions are common and typically signal that management needs more time to finalize a deal. The small deposit requirement helps maintain the trust value but indicates minimal commitment compared to the total trust assets.

WILMINGTON, Del., Nov. 19, 2024 (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 November 14, 2024 for an additional month, to December 14, 2024.

As previously disclosed, at an annual meeting of its stockholders held on September 6, 2024, Bannix’ 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 six times for an additional one month each time (the “Extension”) until March 14, 2025.

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) $25,000 and (y) $0.05 for each share that is not redeemed in connection with the special meeting.

On November 14, 2024, the Board, at the request of the Sponsor, decided to implement the twenty-one Extension and to extend the Deadline Date for an additional month to December 14, 2024.

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.

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.

Contact:

Bannix Acquisition Corp
Douglas Davis, CEO
(302) 305-4790
doug.davis@bannixacquisition.com

FAQ

When is Bannix Acquisition Corp's (BNIX) new deadline for completing its business combination?

The new deadline for Bannix Acquisition Corp to complete its business combination is December 14, 2024.

How many extensions can Bannix (BNIX) implement for its business combination deadline?

Bannix can implement up to six one-month extensions until March 14, 2025, as approved by stockholders on September 6, 2024.

How much does Instant Fame need to deposit for each Bannix (BNIX) deadline extension?

For each extension, Instant Fame must deposit the lesser of $25,000 or $0.05 per non-redeemed share as a loan into the trust account.