Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 48

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 48
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. In addition, the existence of these rights may make it more difficult to effectuate a business combination or
increase the cost of acquiring the target business, as the shareholders of the target business may be discouraged from entering into
a business combination with us or will request a higher price for their securities because of the potential effect the exercise of such
rights may have on the trading market for our ordinary shares.

If
we were deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements
and our activities may be restricted, which may make it difficult for us to complete a business combination.

On
January 24, 2024, the SEC adopted final rules (the “SPAC Final Rules”) relating to, among other items, enhancing disclosures
in business combination transactions involving SPACs and private operating companies; amending the financial statement requirements applicable
to transactions involving shell companies; effectively limiting the use of projections in SEC filings in connection with proposed business
combination transactions; increasing the potential liability of certain participants in proposed business combination transactions; and
the extent to which SPACs could become subject to regulation under the Investment Company Act. The SPAC Final Rules were published in
the Federal Register on February 26, 2024 and became effective on July 1, 2024.

Instead
of adopting a safe harbor from the “investment company” definition under section 3(a)(1)(A) of the Investment Company Act,
the SPAC Final Rules provide that whether a SPAC is an “investment company” under the Investment Company Act is based on
particular facts and circumstances. A specific duration period of a SPAC is not the sole determinant, but one of the long-standing factors
to consider in determination of a SPAC’s status under the Investment Company Act. A SPAC could be deemed as an investment company
at any stage of its operation. The determination of a SPAC’s status as an investment company includes analysis of multiple facts
and circumstances, including but not limited to, the nature of SPAC assets and income, the activities of the SPAC’s officers, directors
and employees, the duration of a SPAC, the manner a SPAC holding itself out to investors, and the merging with an investment company.

32

We
do not believe that our anticipated principal activities will subject us to the Investment Company Act. The funds in the trust account
are held only in U.S. government securities within the meaning set forth in Section 2(a