Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 179

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 179
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 not seek conversion may be able
to sell their securities.

Because
of our limited resources and structure, other companies may have a competitive advantage and we may not be able to consummate an attractive
business combination.

We
expect to encounter intense competition from entities other than blank check companies having a business objective similar to ours, including
venture capital funds, leveraged buyout funds and operating businesses competing for acquisitions. Many of these entities are well established
and have extensive experience in identifying and effecting business combinations directly or through affiliates. Many of these competitors
possess greater technical, human and other resources than we do, and our financial resources will be relatively limited when contrasted
with those of many of these competitors. While we believe that there are numerous potential target businesses that we could acquire with
the net proceeds of our initial public offering, our ability to compete in acquiring certain sizable target businesses will be limited
by our available financial resources. This inherent competitive limitation gives others an advantage in pursuing the acquisition of certain
target businesses. Furthermore, seeking shareholder approval of a business combination may delay or prevent the consummation of a transaction,
a risk a target business may not be willing to accept. Additionally, our outstanding rights, and the future dilution they potentially
represent, may not be viewed favorably by certain target businesses. Any of the foregoing may place us at a competitive disadvantage
in successfully negotiating a business combination.

Our
initial shareholders control a substantial interest in us and thus may influence certain actions requiring a shareholder vote, potentially
in a manner that you do not support.

Our
initial shareholders currently own approximately 20.0% of our issued and outstanding ordinary shares. Accordingly, they may exert a substantial
influence on actions requiring a shareholder vote, potentially in a manner that you do not support, including amendments to our memorandum
and articles of association. None of our officers, directors, initial shareholders or their affiliates has indicated any intention to
purchase units in our initial public offering or any units or ordinary shares from persons in the open market or in private transactions
(other than the private units). However, if our initial shareholders purchase any units in our initial public offering or if our officers,
directors, initial shareholders or their affiliates determine in the future to make such purchases in the open market or in private transactions,
to the extent permitted by law, in order to assist us in consummating our initial business combination, this will increase their control.
Factors that would be considered in making such additional purchases would include consideration of the current