Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 166

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 166
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 time, effort and resources to
identify a suitable target for an initial business combination.

In
addition, because there are more special purpose acquisition companies seeking to enter into an initial business combination with available
targets, the competition for available targets with attractive fundamentals or business models may increase, which could cause target
companies to demand improved financial terms. Attractive deals could also become scarcer for other reasons, such as economic or industry
sector downturns, geopolitical tensions or increases in the cost of additional capital needed to close business combinations or operate
targets post-business combination. This could increase the cost of, delay or otherwise complicate or frustrate our ability to find a
suitable target for and/or complete our initial business combination.

We
may not be able to complete an initial business combination with a U.S. target company since such initial business combination may be
subject to U.S. foreign investment regulations and review by a U.S. government entity, such as the Committee on Foreign Investment in
the United States (“CFIUS”), or ultimately prohibited.

Infinity-Star
Holdings Limited, a British Virgin Islands company, and Jin Xin, a PRC resident, hold 20% and 80%, respectively, of the outstanding shares
of our sponsor. Our sponsor currently owns approximately 21.7% of our issued and outstanding ordinary shares. Certain companies requiring
federally issued licenses in the United States, such as broadcasters and airlines, may be subject to rules or regulations that limit
foreign ownership. In addition, CFIUS is an interagency committee authorized to review certain transactions involving foreign investment
in the United States by foreign persons in order to determine the effect of such transactions on the national security of the United
States. Therefore, because we may be considered a “foreign person” under such rules and regulations, we could be subject
to foreign ownership restrictions and/or CFIUS review if our proposed business combination is with a U.S. target company engaged in a
regulated industry or which may affect national security. The jurisdictional scope of CFIUS was expanded by the Foreign Investment Risk
Review Modernization Act of 2018 (“FIRRMA”), to include certain non-passive, non-controlling investments in sensitive U.S.
businesses and certain acquisitions of real estate even with no underlying U.S. business. FIRRMA, and subsequent implementing regulations
that are now in force, also subject certain categories of investments to mandatory filings. Therefore, if our potential initial business
combination with a U.S. target