Kernel announces charter & trust amendments, intends extension for combination

Kernel Group Holdings announced that its shareholders approved amendments to its charter and trust agreement to change the structure and cost of how KRNL can obtain extensions to the deadline to complete its initial business combination and that KRNL obtained the first of up to six 1-month extensions of the deadline – from February 5, to March 5 – by depositing $300,000 into its trust account with Continental Stock Transfer and Trust Company . KRNL’s shareholders, at an extraordinary general meeting of its shareholders held on February 3, 2023, approved amendments to KRNL’s Amended and Restated Articles of Association and KRNL’s Investment Management Trust Agreement dated February 5, 2021 with Continental to change how KRNL can obtain extensions to the previously applicable February 5, deadline to complete its initial business combination. The amendments allow KRNL to instead obtain up to six 1-month extensions by depositing the lesser of (x) $300,000 or (y) 6c per outstanding public share into the Trust Account by the deadline applicable prior to the extension.The Charter Amendment triggered a right of KRNL’s public shareholders to demand the redemption of their public shares out of funds held in the Trust Account. Holders of 22,848,122 public shares properly requested redemption leaving 7,626,878 public shares outstanding. After payment of the redemption price to the redeeming public shareholders of approximately $10.15 per share for an aggregate of $231.9 million, KRNL will have approximately $74.7 million left in its Trust Account. Based on the shares redeemed, the $300,000 per month represents approximately $0.04 per unredeemed share.