Golden Star Acquisition Corp (NASDAQ:GODNU), a $51 million market cap company, has made an eleventh monthly extension fee deposit of $50,000 to its trust account today, as part of its ongoing efforts to extend the time frame for completing its initial business combination. This follows a series of similar deposits made since February 2024. According to InvestingPro data, the stock has shown remarkable stability with low price volatility, gaining 7.8% year-to-date.
The company, which is classified under the "blank checks" industry, initially disclosed on January 10, 2024, that its sponsor, G-Star Management Corporation, requested an extension of the deadline to complete a business combination. InvestingPro analysis reveals that while the company maintains profitability with earnings of $0.26 per share over the last twelve months, it faces challenges with short-term obligations exceeding liquid assets, as indicated by a current ratio of 0.05. The initial deadline of February 4, 2024, could be extended up to 12 times by an additional month each, up to February 4, 2025. The board of directors approved this request unanimously.
As part of the agreement, the sponsor agreed to deposit monthly extension fees into the trust account. The first two deposits, made on February 2 and March 3, 2024, were $230,000 each, equating to $0.033 per public share. Following an extraordinary general meeting of shareholders on April 1, 2024, the monthly fee was amended to $0.02 per outstanding public share, with the revised fee taking effect from April 4, 2024. The sponsor has since complied with this arrangement, depositing $106,068 for April, May, and June.
Further adjustments to the fee structure were approved at a shareholder meeting on July 3, 2024, with the amended monthly extension fee set at the lesser of $50,000 for all outstanding public shares or $0.02 for each share. Since July, the sponsor has made consistent monthly deposits of $50,000.
Golden Star Acquisition Corp, based in New York, New York, is an emerging growth company with units, ordinary shares, and rights listed on The Nasdaq Stock Market under the symbols GODNU, GODN, and GODNR, respectively. Trading at a P/E ratio of 43.5, the company's stock currently appears overvalued according to InvestingPro Fair Value calculations. Subscribers can access 4 additional ProTips and comprehensive financial metrics to make more informed investment decisions.
In other recent news, Golden Star Acquisition Corp has made significant strides in its business operations. The company has extended its merger deadline with Gamehaus Inc. until February 4, 2025, providing additional time to finalize the business combination. This move follows a series of monthly extension fee deposits into its trust account, demonstrating Golden Star's commitment to securing this business combination.
The company's sponsor, G-Star Management Corporation, has complied with an adjusted shareholder fee structure resulting in recent deposits into the trust account. The monthly fee was amended to the lesser of $50,000 for all outstanding public shares or $0.02 per outstanding public share, ensuring the company's financial stability during this extension period.
Furthermore, Golden Star Acquisition Corp has postponed its extraordinary general meeting to allow more time for shareholder engagement. The meeting will focus on approving a reduced monthly fee to extend the deadline for an initial business combination.
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