Horizon Space Acquisition I Corp. (NASDAQ:HSPO), a special purpose acquisition company (SPAC), has announced an extension for completing its initial business combination. The company has secured an additional month, moving the deadline from November 27, 2024, to December 27, 2024.
The extension was facilitated by a $60,000 deposit into the company's trust account by Squirrel Enlivened (Hong Kong) Technology Limited. This deposit is linked to an agreement with Squirrel Enlivened Technology Co., Ltd and other related parties concerning a proposed business combination. The deposit acts as a Monthly Extension Fee allowing HSPO more time to finalize the merger.
In connection with the extension, HSPO issued an unsecured promissory note to Squirrel Enlivened (Hong Kong) Technology Limited for the same amount of $60,000. The note, which bears no interest, is payable by the earlier of the business combination's consummation or the company's expiry date.
The note includes standard provisions for default, which, if triggered, could lead to an accelerated repayment. Events such as bankruptcy proceedings, payment failures, or breaches of obligations can constitute a default under the terms of the note.
This extension is part of HSPO's broader strategy to finalize its business combination with entities outlined in the Agreement and Plan of Merger dated September 16, 2024. The proposed merger is with Squirrel HoldCo and its subsidiaries, including Squirrel Cayman and Merger Sub, aiming to establish a combined entity positioned for growth in its sector.
In other recent news, Horizon Space Acquisition I Corp. has been navigating several significant developments. The company has extended its merger deadline with Shenzhen Squirrel Enlivened Media Group Co. Ltd, depositing an additional $60,000 into its trust account to facilitate the extension. This move provides Horizon Space with additional time to finalize the merger plans and fulfill the necessary conditions for the combination.
Horizon Space has also issued an unsecured promissory note of $400,000 to its sponsor, Horizon Space Acquisition I Sponsor Corp. This note, which carries no interest, is intended to support the company's operations until the completion of its initial business combination.
In response to potential delisting from the Nasdaq Global Market due to non-compliance with the minimum shareholder requirement, Horizon Space Acquisition I Corp. has applied to transfer its listing to the Nasdaq Capital Market, which has less stringent requirements.
InvestingPro Insights
As Horizon Space Acquisition I Corp. (NASDAQ:HSPO) navigates its path towards completing its initial business combination, InvestingPro data provides additional context for investors. The company's market capitalization stands at $88.66 million, reflecting its current valuation as a SPAC.
HSPO's stock is trading near its 52-week high, with the price at 93.2% of its peak. This aligns with an InvestingPro Tip suggesting that the stock is trading near its 52-week high, which could be of interest to investors monitoring the SPAC's performance leading up to its merger deadline.
Another relevant InvestingPro Tip indicates that HSPO has been profitable over the last twelve months. This profitability, combined with the company's P/E ratio of 40.04, suggests that investors are placing a premium on the SPAC's potential future value, likely in anticipation of its proposed business combination.
For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for HSPO, providing a deeper understanding of the company's financial position and market performance as it approaches its extended merger deadline.
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