OTCMARKETS 8-K
Item 1.02 Termination of Material Definitive Agreement.
As previously disclosed, on June 23, 2023, Bannix Acquisition Corp. (“Bannix”), EVIE Autonomous Group Ltd. (“EVIE Group”) and the shareholder of the EVIE Group (“EVIE Group Shareholder”), entered into a Business Combination Agreement (the “Business Combination Agreement”), which provided for the acquisition by Bannix of all of the issued and outstanding share capital of EVIE Group from the EVIE Group Shareholder in exchange for the issuance of 85,000,000 shares of common stock of Bannix, $0.01 par value per share, pursuant to which EVIE Group will become a direct wholly owned subsidiary of Bannix.
Section 7.1(b) of the Business Combination Agreement provides that Bannix may terminate the Business Combination Agreement and abandon the acquisition of EVIE Group by Bannix in the event EVIE Group or the EVIE Group Shareholder has failed to perform any condition or agreement on the part of EVIE Group or EVIE Group Shareholder set forth in the Business Combination Agreement. Specifically, Section 5.21 of the Business Combination Agreement requires that if requested in writing by Bannix, EVIE Group shall loan, or procure a loan to Bannix such additional sums as Bannix may reasonably require.
On March 11, 2024, Bannix sent EVIE Group and the EVIE Group Shareholder a notice providing that the Business Combination Agreement has been terminated as a result of the failure of EVIE Group and the EVIE Group Shareholder to loan or procure a loan to Bannix as required pursuant to Section 5.21 of the Business Combination Agreement. An initial notice was sent by Bannix to EVIE Group and the EVIE Group Shareholder on January 12, 2024, and on February 22, 2024, which was subsequently withdrawn to resolve the failure of EVIE Group and the EVIE Group Shareholder to loan or procure a loan to Bannix.
The Company is not obligated to pay any penalties pursuant to the terms of the Business Combination Agreement as a result of the termination. The Sponsor Letter Agreement entered between Bannix, Instant Fame LLC and EVIE Group dated August 7, 2023 and the Transaction Support Agreement between Bannix and the EVIE Group Shareholder dated August 7, 2023 automatically terminated as a result of the termination of the Business Combination Agreement
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