Bite Acquisition in a regulatory filing said no funds in its trust account or the interest earned on the funds would be used to pay for any exxcise tax that might be levied in connection with redemptions.
The Inflation Reduction Act of 2022 calls for a 1% excise tax on stock repurchases starting Jan. 1. While it remains unclear as to whether the tax also applies to shares redeemed in connection with SPAC transactions, most blank-check firms have been maneuvering in the belief that it will.
Bite raised $175 million in a February 2021 IPO with plans to focus on the traditional and non-traditional restaurant sectors in North America.
