Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 192

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 192
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 per share price
for the founder shares as our public shareholders paid for their public shares.

The
nominal purchase price paid by our initial shareholders for the initial shares may significantly dilute the implied value of your public
shares in the event we consummate an initial business combination.

While
we offered our units at an offering price of $10.00 per unit and the amount in our trust account was initially $10.00 per public share,
implying an initial value of $10.00 per public share, our initial shareholders paid only a nominal aggregate purchase price of $25,000
for the 1,725,000 initial shares, or approximately $0.014 per share. As a result, the value of your public shares may be significantly
diluted in the event we consummate an initial business combination. Note that redemptions of our public shares in connection with our
initial business combination would further reduce the implied value of our ordinary shares.

Furthermore,
as our initial shareholders acquired their initial shares at a nominal price, they are likely to make a substantial profit on its investment
in us even if we select and consummate an initial business combination that causes the trading price of our ordinary shares to decline,
while our public shareholders who purchased our securities could lose significant value in their public shares. Our initial shareholders
may therefore be economically incentivized to consummate an initial business combination with a riskier, weaker-performing or less-established
target business than would be the case if our initial shareholders had paid the same per share price for the founder shares as our public
shareholders paid for their public shares.

We
may issue additional ordinary or preferred shares or debt securities to complete a business combination, which would reduce the equity
interest of our shareholders and likely cause a change in control of our ownership.

Our
amended and restated memorandum and articles of association currently authorize the issuance of 500,000,000 shares of a single class
each with par value of $0.0001. We may issue a substantial number of additional ordinary shares or preferred shares or debt securities,
or a combination of thereof, to complete a business combination. The issuance of additional ordinary shares or preferred shares:

    ●
    may
    significantly reduce the equity interest of investors in our initial public offering;

    ●
    may
    subordinate the rights of holders of ordinary shares if we issue preferred shares with rights senior to those afforded to our ordinary
    shares;

    ●
    may
    cause a change in control