Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 47

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 47
---
 in the issuance of 30,000 private units that will result in the issuance of up to an additional 33,333 ordinary shares.
On October 28, 2024, we issued an unsecured promissory note to the sponsor, pursuant to which we may borrow up to an aggregate principal
amount of $300,000 (the “Working Capital Loan Note”). The Working Capital Loan Note is non-interest-bearing and payable on
the consummation of the initial business combination or converted upon consummation of the business combination into additional private
units at a price of $10.00 per unit. As of December 31, 2024, the principal amount due and owing under the Working Capital Loan Note
was $nil. In addition, the potential for the issuance of a substantial number of additional shares upon conversion of the rights
could make us a less attractive acquisition vehicle in the eyes of a target business. Such securities, when converted, will increase
the number of issued and outstanding ordinary shares and reduce the value of the shares issued to complete the business combination.
Accordingly, our rights may make it more difficult to effectuate a business combination or increase the cost of acquiring the target
business. Additionally, the sale, or even the possibility of sale, of the shares underlying the rights could have an adverse effect on
the market price for our securities or on our ability to obtain future financing. If to the extent these rights are converted, you may
experience dilution to your holdings.

If
our shareholders exercise their registration rights with respect to their securities, it may have an adverse effect on the market price
of our ordinary shares and the existence of these rights may make it more difficult to effect a business combination.

Our
initial shareholders are entitled to make a demand that we register the resale of their initial shares at any time commencing three months
prior to the date on which their shares may be released from escrow. Additionally, the purchasers of the private units and our initial
shareholders, officers and directors are entitled to demand that we register the resale of the 206,900 ordinary shares underlying the
private units, 19,340 ordinary shares underlying the private rights and any securities our initial shareholders, officers, directors
or their affiliates may be issued in payment of working capital loans or loans to extend our life made to us at any time after we consummate
a business combination. The presence of these additional securities trading in the public market may have an adverse effect on the market
price of our securities