Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 50

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 50
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 or in money market funds investing
solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. However, as noted
above, one of the factors the SEC identified as relevant to the determination of whether a SPAC which holds securities could potentially
be deemed an “investment company” under the Investment Company Act is the SPAC’s duration. To mitigate the risk of
us being deemed to be an unregistered investment company (including under the subjective test of Section 3(a)(1)(A) of the Investment
Company Act) and thus subject to the regulations under the Investment Company Act, we may determine, in our discretion, to liquidate
the securities held in the trust account and instead hold all funds in the trust account in an interest-bearing bank demand deposit account,
which may earn less interest than we otherwise would have if the trust account had remained invested in U.S. government securities or
money market funds.

We
may not seek an opinion from an unaffiliated third party as to the fair market value of the target business we acquire.

We
are not required to obtain an opinion from an unaffiliated third party that the target business we select has a fair market value in
excess of at least 80% of the balance of the trust account (excluding any deferred underwriting discounts and commissions and taxes payable
on the income earned on the trust account) unless our board of directors cannot make such determination on its own. We are also not required
to obtain an opinion from an unaffiliated third party indicating that the price we are paying is fair to our shareholders from a financial
point of view unless the target is affiliated with our officers, directors, initial shareholders or their affiliates. If no opinion is
obtained, our shareholders will be relying on the judgment of our board of directors, whose collective experience in business evaluations
for blank check companies like ours is not significant. Furthermore, our directors may have a conflict of interest in analyzing the transaction
due to their personal and financial interests.

We
may acquire a target business that is affiliated with our officers, directors, initial shareholders or their affiliates.

While
we do not currently intend to pursue an initial business combination with a company that is affiliated with our officers, directors,
initial shareholders or their affiliates, we are not prohibited from pursuing such a transaction, nor are we prohibited from consummating
a business combination where any of our officers, directors, initial shareholders or their affiliates acquire a minority interest