Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 28

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 28
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 foreign ownership restrictions and/or CFIUS review if our proposed business combination is with a U.S. target company engaged in a
regulated industry or which may affect national security. The jurisdictional scope of CFIUS was expanded by the Foreign Investment Risk
Review Modernization Act of 2018 (“FIRRMA”), to include certain non-passive, non-controlling investments in sensitive U.S.
businesses and certain acquisitions of real estate even with no underlying U.S. business. FIRRMA, and subsequent implementing regulations
that are now in force, also subject certain categories of investments to mandatory filings. Therefore, if our potential initial business
combination with a U.S. target company falls within the scope of foreign ownership restrictions, we may be unable to consummate a business
combination with such target company. In addition, if our potential business combination falls within CFIUS’s jurisdiction, we
may be required to make a mandatory filing or determine to submit a voluntary notice to CFIUS, or to proceed with the initial business
combination without notifying CFIUS and risk CFIUS intervention, before or after closing the initial business combination. CFIUS may
decide to block or delay our initial business combination, impose conditions to mitigate national security concerns with respect to such
initial business combination or order us to divest all or a portion of a U.S. business of the combined company were we to proceed without
first obtaining CFIUS clearance. The foreign ownership limitations, and the potential impact of a CFIUS review, may limit the attractiveness
of a transaction with us or prevent us from pursuing certain initial business combination opportunities that we believe would otherwise
be beneficial to us and our shareholders. As a result, the pool of potential targets with which we could complete an initial business
combination may be limited and we may be adversely affected in terms of competing with other special purpose acquisition companies that
do not have similar foreign ownership issues.

21

Moreover,
the process of government review, whether by CFIUS or otherwise, could be lengthy. Because we have only a limited time to complete our
initial business combination, our failure to obtain any required approvals within the requisite time period may require us to liquidate.
If we liquidate, our public shareholders may only receive $10.00 per share initially or 100.0% of the gross proceeds from the offering,
and our rights will expire worthless. This will also cause you to lose any potential investment opportunity in a target company and the
chance of realizing future gains