Anzu Special Acquisition I in an amended proxy filing said it signed an agreement with a rated insurance agency to cover any excise tax liability for the SPAC, its sponsor, or the respective directors, officers, and managing members in the event of a liquidation in 2023.
The insurance is conditioned on shareholder approval of a deadline extension. Anzu's sponsor has agreed to provide funds for the premiums, fees and expenses associated with the insurance agreement. Funds provided by the sponsor will be in the form of a working capital loan.
Shareholders are voting on an extension proposal that would push the SPAC's deadline from March 4 to Sept. 30.
Anzu I earlier this month said it signed a non-binding letter of intent to pursue a potential merger with Envoy Medical, which has developed an FDA-approved cochlear implant to aid individuals with severe hearing loss. The SPAC expects to execute a definitive agreement by the end of this month. Terms would include a requirement that Anzu have at least $40 million in trust at closing. Read more.
Source: Anzu Special Acquisition I Offers to Buy Insurance to Cover Any Excise Tax