Data Knights Sponsor to Indemnify SPAC Against Excise Tax on any Redemptions

Data Knights Acquisition in a regulatory filing said its sponsor intends to indemnify the blank-check company against the 1% excise tax on stock repurchases and redemptions that goes into effect in January 2023.

The UK-based SPAC is asking shareholders for a deadline extension to complete a $317 million deal with OneMedNet, a data solutions provider that connects healthcare providers and patients. Because the merger plan most likely will not be put to a vote until the New Year, the SPAC’s sponsor said proceeds in the Data Knights trust, as well as earned interest, “shall not be used to pay for any excise tax.” Read more.

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