Company: CSTAF
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027555
Chunk: 240

Company: Constellation Acquisition Corp I
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1A
Chunk 240
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 agreeing to pay a $6.75 million
civil penalty to settle such claims. In addition, litigation challenging completed and pending acquisitions by SPACs has increased, and
in such litigation, it is possible that sponsors and/or their director designees may be held liable either for breaches of fiduciary duties
owed to the SPAC’s public stockholders or for certain actions or omissions by the SPAC, including the failure by the SPAC to comply
with applicable securities laws. Litigation has also arisen asserting that SPACs are violating federal securities laws by operating as
unregistered investment companies. Any liabilities arising from these developments could adversely impact our business as well as harm
our professional reputation.

The SEC has recently adopted new rules to regulate special
purpose acquisition companies. Certain of the procedures that we, a potential Business Combination target, or others may determine to
undertake in connection with such rules may increase the Company’s costs and the time needed to complete our Business Combination
and may constrain the circumstances under which we could complete a Business Combination.

On January 24, 2024, the SEC adopted new rules (the “SPAC Rules”),
relating to disclosures in Business Combination transactions between SPACs, such as the Company, and private operating companies; the
condensed financial statement requirements applicable to transactions involving shell companies; the use of projections by SPACs in SEC
filings in connection with proposed Business Combination transactions; the potential liability of certain participants in proposed Business
Combination transactions; amend the definition of “blank check company” to make the safe harbor pursuant to the Private Securities
Litigation Reform Act of 1995 unavailable to SPACs, including with respect to projections of target companies; and the extent to which
SPACs could become subject to regulation under the Investment Company Act of 1940, as amended. Certain of the procedures that the Company,
a potential Business Combination target, or others may determine to undertake in connection with the SPAC Rules, or pursuant to the SEC’s
views expressed in the SPAC Rules, may have a material adverse affect on our business, including our ability to complete, and the costs
associated with, a Business Combination, and results of operations.

38

Our shareholders may be held liable for claims by third
parties against us to the extent of distributions received by them upon redemption of their shares.

If we are forced to enter into an insolvent liquidation, any distributions
received by shareholders could be viewed as an unlawful payment if