Kernel Group Under New Management Seeks Merger Extension

Two days after disclosing new management and a buyout of the original sponsors, Kernel Group filed a proxy asking shareholders for an extra six months to do a deal.

The SPAC wants to push the current termination date of Feb. 5 back to Aug. 5 and the new sponsors are willing to deposit $300,000 into trust for each month required if the extension is approved.

Kernel earlier this week announced new sponsors, accompanied by a change in management and directors.

New Chairman and CEO Surendra Ajjarapu and Howard Doss serve in the same roles at Aesther Healthcare Acquisition, which has a March 16 deadline to close a deal with Ocean Biomedical.

At such time as Kernel might complete a deal, the new sponsor has agreed to give 2 million Class B shares to equity holders of the original sponsor. Additionally, the new sponsor and management agreed to pay each of the initial sponsor founders $250,000 and convey 125,000 Class B shares to each for advisor fees.

Kernel in June 2021 was reportedly in talks about a $1 billion deal with Infarm, an -based startup focused on indoor and urban farming. However, those discussion were evidently fruitless.

Kernel raised $265 million in a February 2021 to a business in the Commerce Enablement, Supply Chain, and related Technology Infrastructure sectors, with an enterprise value of more than $1 billion. Read more.

Source: Kernel Group Under New Management Seeks Merger Extension