Anzu Special Acquisition Corp I Reports Q3 2022 Net Income Increase to $5.69 Million

Anzu Special Acquisition Corp I reported a net income of $5.69 million for the third quarter of 2022, a slight increase from $5.57 million in the same period of 2021. For the nine months ending September 30, 2022, the company achieved a net income of $21.24 million, significantly up from $4.47 million in the prior year. The increase in profitability is attributed to a $19.20 million gain from changes in the fair value of warrant liabilities and $2.53 million in interest income from investments held in the Trust Account. Operating expenses for the third quarter were $1.03 million, down from $2.99 million in the previous year, reflecting a strategic reduction in costs.

The company’s total assets as of September 30, 2022, stood at $427.81 million, a marginal increase from $426.90 million at the end of 2021. Current assets decreased to $590,192 from $863,167, primarily due to a reduction in prepaid expenses. The Trust Account, which holds the proceeds from the company’s initial public offering (IPO), reported investments of $427.11 million, up from $425.04 million at the end of 2021. The company’s working capital deficit widened to $5.41 million from $1.82 million, driven by increased accrued expenses and a $1.50 million working capital loan from its sponsor.

In terms of strategic developments, Anzu Special Acquisition Corp I has not yet completed a business combination but continues to evaluate potential targets. The company has focused on identifying high-quality businesses with transformative technologies for industrial applications. As of September 30, 2022, the company had 42.5 million shares of Class A common stock subject to possible redemption, valued at $426.88 million, reflecting a redemption value increase from $425 million at the end of 2021.

Operationally, the company has maintained its headcount at 10,625,000 shares of Class B common stock, with no changes reported. The company has also seen a significant reduction in deferred underwriting fees, with $4.46 million forgiven in September 2022 as the underwriters resigned from their role in any potential future business combination. The company has until March 4, 2023, to complete its initial business combination, or it will face mandatory liquidation.

Looking ahead, Anzu Special Acquisition Corp I plans to utilize the funds held in the Trust Account to complete its business combination and may seek additional financing to cover operational costs and transaction expenses. The company remains focused on identifying suitable acquisition targets and is prepared to take necessary measures to ensure liquidity, including potential loans from its sponsor or third parties. The management has expressed confidence in completing a business combination before the liquidation deadline, although uncertainties remain regarding market conditions and the availability of suitable targets.