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.