Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 188

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 188
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 Investment Company Act, we may determine, in our discretion, to liquidate
the securities held in the trust account and instead hold all funds in the trust account in an interest bearing bank demand deposit account,
which may earn less interest than we otherwise would have if the trust account had remained invested in U.S. government securities or
money market funds.” If we were deemed to be an investment company under the Investment Company Act, our activities would be severely
restricted. In addition, we would be subject to burdensome compliance requirements, which would require additional expenses for which
we have not allotted funds and may hinder our ability to complete a business combination. As a result, unless we are able to modify our
activities so that we would not be deemed an investment company, we may be unable to consummate the initial business combination and
instead be required to conduct a liquidation. If we were required to liquidate, our investors would not be able to realize the benefits
of owning shares in a successor operating business, including the potential appreciation in the value of our securities following such
a transaction, and the public rights would expire worthless.

To
mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, we may determine, in
our discretion, to liquidate the securities held in the trust account and instead hold all funds in the trust account in an interest
bearing bank demand deposit account, which may earn less interest than we otherwise would have if the trust account had remained invested
in U.S. government securities or money market funds.

Following
the consummation of our initial public offering, the funds in the trust account are held only in U.S. government securities within the
meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 180 days or less or in money market funds investing
solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. However, as noted
above, one of the factors the SEC identified as relevant to the determination of whether a SPAC which holds securities could potentially
be deemed an “investment company” under the Investment Company Act is the SPAC’s duration. To mitigate the risk of
us being deemed to be an unregistered investment company (including under the subjective test of Section 3(a)(1)(A) of the Investment
Company Act) and thus subject to the regulations under the Investment Company Act, we may determine, in