Horizon Space Acquisition I Corp. (NASDAQ:HSPO), a special purpose acquisition company, has announced an extension to its deadline for completing an initial business combination. The company disclosed on Friday that it deposited an additional $60,000 into its trust account to extend the merger deadline by one month, moving the date from June 27, 2024, to July 27, 2024.
This strategic move comes after Horizon Space Acquisition entered into a non-binding letter of intent on October 17, 2023, with Shenzhen Squirrel Enlivened Media Group Co. Ltd. (the " Target (NYSE:TGT)"), which is considering a business combination with Horizon. In connection with this extension, Horizon issued an unsecured promissory note to the Target for the amount of the extension fee.
The promissory note carries no interest and is due on the earlier of the business combination's completion or the company's expiration date. The Target, as the payee, also has the option to convert the note into private units of Horizon Space Acquisition, which include ordinary shares and warrants, prior to the closing of any potential business combination.
Despite these developments, Horizon Space Acquisition has not yet entered into any definitive agreements regarding a merger or business combination. The company's actions are part of the process to secure more time to finalize a potential deal.
The issuance of the note and the extension were conducted in accordance with the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933. This information is based on a press release statement and reflects the latest steps taken by Horizon Space Acquisition as it works towards its business combination goal.
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