Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 5

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 5
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. We believe that target businesses
will favor this alternative, which we believe is less expensive, while offering greater certainty of execution than a traditional initial
public offering. During an initial public offering, there are typically expenses incurred in marketing, which would be costlier than
a business combination with us. Furthermore, once a proposed business combination is approved by our shareholders (if applicable) and
the transaction is consummated, the target business will have effectively become public, whereas an initial public offering is always
subject to the underwriters’ ability to complete the offering, as well as general market conditions that could prevent the offering
from occurring. Once public, we believe the target business would have greater access to capital and additional means of creating management
incentives that are better aligned with shareholders’ interests than it would as a private company. It can offer further benefits
by augmenting a company’s profile among potential new customers and vendors and aid in attracting talented management.

Strong
Financial Position and Flexibility

With
the funds held in our trust account, we offer a target business a variety of options such as creating a liquidity event for its owners,
providing capital for the potential growth and expansion of its operations or strengthening its balance sheet by reducing its debt ratio.
Because we are able to complete our initial business combination using our cash, debt or equity securities, or a combination of the foregoing,
we have the flexibility to use the most efficient combination that will allow us to tailor the consideration to be paid to the target
business to fit its needs and desires. However, we have not taken any steps to secure third-party financing, and there can be no assurance
it will be available to us.

Effecting
Our Initial Business Combination

General

We
are not presently engaged in, and we will not engage in, any substantive commercial business for an indefinite period of time following
our initial public offering. We intend to utilize cash derived from the proceeds of our initial public offering and the private placement
of private units, our share capital, debt or a combination of these in effecting a business combination. Although substantially all of
the net proceeds of our initial public offering and the private placement of private units are intended to be applied generally toward
effecting a business combination as described in this Report, the proceeds are not otherwise being designated for any more specific purposes.
Accordingly, investors in our initial public offering are investing without first having an opportunity to evaluate the specific merits
or risks of any one or more business combinations. A business combination