Anzu Special Acquisition Corp. I (ANZU) Adjourns Extension Vote

Anzu Special Acquisition Corp. I (NASDAQ:ANZU) announced this morning that it adjourned today’s special meeting to extend its completion deadline and will now be held on February 21.

Anzu had previously filed to explain its redemption and excise tax procedure around the vote.  Specifically, it stated that it plans to set aside 1% of interest to pay for any potential tax. In contrast, SPACs investors have been pushing back since any hold-back of funds would potentially reduce cash-in-trust values. However, today’s filing did not provide any context around Anzu’s need for an adjournment.

The SPAC is currently facing a completion deadline of March 4, but intends to extend its timeline by 6 months to September 30. Anzu investors also have its LOI with Envoy Medical to consider, which is valued at $150 million.

Announced earlier this week, the LOI remains non-binding and requires Anzu to have at least $40 million in its trust account in order for the deal to close. The US-based medical device company has developed and is in early clinical testing of fully implanted cochlear implants. Envoy Medical received “Breakthrough Device Designation” from the FDA in 2019 and was able to test its device on a patient at the Mayo Clinic in Q4’22.

Anzu was expecting to execute the definitive agreement with Envoy Medical shortly after its meeting today, but it will have to hold off until the end of the month. The Nasdaq has already reserved the stock symbol of “COCH” for the prospective combined company.

But, the SPAC has faced internal struggles since its $420 million IPO in March 2021. Over this past summer, Anzu’s team did not see eye to eye regarding its strategy, resulting in the loss of their CFO, General Counsel & Secretary, Chairman of the Board, and a Director, all of which have resigned. Its 8-K filing noted that at issue were the targets the company was evaluating as well as current market conditions.