Bannix Acquisition Corp. Announces Monthly Extension to Complete its Initial Business Combination
Rhea-AI Summary
Bannix Acquisition Corp (BNIX) has announced that its board of directors has extended the deadline for completing its initial business combination by one month, from January 14, 2025, to February 14, 2025. This extension is part of a previously approved amendment that allows up to six one-month extensions until March 14, 2025.
The extension was approved by stockholders at an annual meeting on September 6, 2024. As part of the extension terms, the company's sponsor, Instant Fame , or its designees will deposit into the trust account, as a loan, either $25,000 or $0.05 for each non-redeemed share, whichever is less. This marks the twenty-third extension implemented by the board at the sponsor's request.
Positive
- None.
Negative
- Continued delays in completing initial business combination
- Additional costs incurred through extension-related loans
- Uncertainty about the company's ability to complete a business combination
Insights
This SPAC extension announcement reveals important dynamics about Bannix Acquisition Corp.'s merger timeline and cash burn considerations. The extension to February 14, 2025, represents the twenty-third such extension, with the sponsor required to deposit up to
The continuous need for extensions, while common in the current SPAC market, raises concerns about deal execution and the potential for shareholder dilution. With a small market cap of
In simple terms: Think of this like extending the deadline on a house purchase closing - each extension costs money and suggests there might be complications in finalizing the deal. The sponsor keeps paying to keep the deal alive, but there's no guarantee of success.
WILMINGTON, Del., Jan. 16, 2025 (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 January 14, 2025 for an additional month, to February 14, 2025.
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)
On January 14, 2025, the Board, at the request of the Sponsor, decided to implement the twenty-third Extension and to extend the Deadline Date for an additional month to February 14, 2025.
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) 305-479
doug.davis@bannixacquisition.com
FAQ
When is BNIX's new deadline for completing its initial business combination?
How many extensions has BNIX implemented for its business combination deadline?
What is the maximum number of additional extensions available to BNIX?
How much must BNIX's sponsor deposit for each extension?
When did BNIX shareholders approve the extension amendments?
