Anzu Special Acquisition Corp I Reports $1.14 Million Net Loss for Q2 2023

Anzu Special Acquisition Corp I reported a net loss of $1.14 million for the three months ended June 30, 2023, compared to a net income of $3.09 million for the same period in 2022. The loss for the first half of 2023 totaled $420,543, a significant decline from the $15.55 million net income recorded in the first half of 2022. The company attributed the losses primarily to a $1.18 million loss on the change in the fair value of forward purchase agreements and increased operating costs of $2.59 million, which were partially offset by $3.90 million in interest income from investments held in a trust account.

The company experienced a substantial decrease in total assets, which fell to $45.04 million as of June 30, 2023, down from $430.62 million at the end of 2022. This decline was largely due to the redemption of approximately $387.6 million in Class A common stock, which left the company with 4.31 million shares outstanding, down from 42.5 million at the end of 2022. The Class A common stock is subject to possible redemption, valued at $10.34 per share as of June 30, 2023.

Strategically, Anzu has entered into a business combination agreement with Envoy Medical Corporation, a medical device company, which is expected to close in the third quarter of 2023. This merger will result in Envoy becoming a wholly-owned subsidiary of Anzu, which will subsequently change its name to Envoy Medical, Inc. The company is actively pursuing this business combination as part of its strategy to utilize the funds held in its trust account, which are intended to finance the operations of the target business post-merger.

Operationally, Anzu's working capital deficit increased to $8.95 million as of June 30, 2023, compared to $7.09 million at the end of 2022. The company has relied on working capital loans from its sponsor, with $2.69 million outstanding as of June 30, 2023. The company has indicated that it may need to raise additional funds to meet its operational needs and complete the business combination, raising concerns about its ability to continue as a going concern if the merger is not consummated by the September 30, 2023 deadline.

Looking ahead, Anzu's management remains focused on completing the proposed business combination with Envoy Medical. However, they have acknowledged the uncertainty surrounding the timeline and the potential need for additional financing to support ongoing operations. The company has emphasized that it does not expect to generate any operating revenues until after the completion of the business combination, which underscores the importance of successfully executing this strategic initiative.