The extension provides KRNL more time to complete its initial business combination, which could be viewed positively as it allows for more thorough due diligence and negotiation. However, frequent extensions might raise concerns about the company's ability to finalize a deal, potentially creating uncertainty among investors.

As a unit of KRNL, KRNLU is indirectly affected by the extension. While the direct impact on KRNLU's stock might not be significant, the extended deadline could influence investor sentiment regarding the unit's future prospects, depending on the perceived reasons for and potential benefits of the extension.