Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 182

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 182
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 our initial business combination transaction with us.

The
ability of a large number of our shareholders to exercise redemption rights may not allow us to consummate the most desirable business
combination or optimize our capital structure.

At
the time we enter into an agreement for our initial business combination, we will not know how many shareholders may exercise their redemption
rights, and therefore will need to structure the transaction based on our expectations as to the number of shares that will be submitted
for redemption. If a large number of shares are submitted for redemption, we may need to restructure the transaction to reserve a greater
portion of the cash in the trust account to redeem such larger number of shares or arrange for additional third-party financing. If the
acquisition involves the issuance of our shares as consideration, we may be required to issue a higher percentage of our shares to the
target or its shareholders to make up for the failure to satisfy a minimum cash requirement. Raising additional funds to cover any shortfall
may involve dilutive equity financing or incurring indebtedness at higher than desirable levels. The above considerations may limit our
ability to complete the most desirable business combination available to us or optimize our capital structure.

If
we seek shareholder approval of our initial business combination, all of our existing shareholders, including all of our officers and
directors, have agreed to vote in favor of such initial business combination, regardless of how our public shareholders vote.

Pursuant
to the letter agreement, our initial shareholders, officers and directors have agreed to vote the initial shares owned by them in favor
of our initial business combination. The holders of the representative shares also have agreed, among other things, to vote their representative
shares in favor of any proposed business combination. As a result, we would need only approximately 35.4% of our public shares to be
voted in favor of an initial business combination (assuming that all issued and outstanding shares are voted and that the initial shareholders
do not purchase any units or shares in the after-market) in order to have our initial business combination approved. Our initial shareholders
currently own approximately 20.0% of our issued and outstanding ordinary shares. Accordingly, if we seek shareholder approval of our
initial business combination, the agreement by our initial shareholders, officers and directors to vote in favor of our initial business
combination will increase the likelihood that we will receive the requisite shareholder approval for such initial business combination.

You
will not have any rights or interests in funds from the trust account, except under certain limited circumstances.