Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 52

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 52
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 initial business combination.

We
may structure our initial business combination to acquire less than 100% of the equity interests or assets of a target business, but
we will only consummate such business combination if we will become the majority shareholder of the target (or control the target through
contractual arrangements in limited circumstances for regulatory compliance purposes) or are otherwise not required to register as an
investment company under the Investment Company Act or to the extent permitted by law we may acquire interests in a variable interest
entity, in which we may have less than a majority of the voting rights in such entity, but in which we are the primary beneficiary. Even
though we may own a majority interest in the target, our shareholders prior to the business combination may collectively own a minority
interest in the post-business combination company, depending on valuations ascribed to the target and us in the business combination
transaction. For example, we could pursue a transaction in which we issue a substantial number of new shares in exchange for all of the
outstanding capital stock of a target. In this case, we acquire a 100% controlling interest in the target. However, as a result of the
issuance of a substantial number of new shares, our shareholders immediately prior to such transaction could own less than a majority
of our outstanding shares subsequent to such transaction. In addition, other minority shareholders may subsequently combine their holdings
resulting in a single person or group obtaining a larger share of the company’s stock than we initially acquired. Accordingly,
this may make it more likely that we will not be able to maintain our control of the target business.

34

Risks
Relating to Our Securities

The
value of the initial shares following completion of our initial business combination is likely to be substantially higher than the nominal
price paid for them, even if the trading price of our ordinary shares at such time is substantially less than $10.00 per share.

Upon
the closing of our initial public offering and the full exercise of the underwriter’s over-allotment option, our initial shareholders
invested in us an aggregate of $2,094,000, comprised of the $25,000 purchase price for the initial shares and the $2,069,000 purchase
price for the private units. Assuming a trading price of $10.00 per share upon consummation of our initial business combination, the
1,725,000 initial shares would have an aggregate implied value of $17,250,000. Even if the trading price