NEW YORK - Squirrel Enlivened International Co., Ltd ("Squirrel Cayman"), a brand marketing and strategy consulting company, and Horizon Space Acquisition I Corp. ("HSPO") (Nasdaq:HSPO), have announced a Business Combination Agreement, which will result in Squirrel Cayman's shares being listed on the Nasdaq Stock Market LLC ("Nasdaq"). This announcement comes as both companies seek to capitalize on Squirrel Cayman's novel approach to brand marketing and strategy consulting, which blends rational and emotional marketing techniques.
The agreement, signed today, outlines a two-step acquisition process. Initially, Squirrel HoldCo will merge with and into Squirrel Cayman, followed by the merger of Merger Sub with and into HSPO. This transaction is intended to cancel all issued and outstanding shares of Squirrel HoldCo, converting them into 20,000,000 ordinary shares of Squirrel Cayman. Similarly, securities of HSPO will be exchanged for substantially equivalent securities of Squirrel Cayman.
However, the completion of the Business Combination is not guaranteed and is subject to regulatory and shareholder approvals, as well as other customary conditions. The terms and timeframe could change, and there is no assurance that the transaction will be completed as currently contemplated.
Mr. Angxiong Zhao, co-founder and CEO of Shenzhen Squirrel, expressed enthusiasm for the Nasdaq listing, which he believes will provide the necessary capital and financial flexibility to fuel growth and technological advancements for the company. Similarly, Mr. Michael Li, CEO and Chairman of HSPO, showed confidence in the growth potential of Squirrel's expertise in e-commerce and brand marketing in China.
Sidley Austin LLP and Robinson & Cole LLP are serving as U.S. legal counsel to Shenzhen Squirrel and HSPO, respectively. Further details about the Business Combination will be disclosed in a Current Report on Form 8-K to be filed by HSPO with the Securities and Exchange Commission (SEC) and will be available at www.sec.gov.
The proposed Business Combination is expected to be submitted to HSPO's shareholders for approval. Investors and security holders are advised to read the registration statement and proxy statement/prospectus, as well as other relevant documents filed with the SEC, once they become available.
This press release is based on a press release statement and contains forward-looking statements subject to risks and uncertainties. It does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
As Squirrel Enlivened International Co., Ltd gears up for its Nasdaq listing through its Business Combination Agreement with Horizon Space Acquisition I Corp. (HSPO), investors are closely monitoring the financial metrics and market signals that may impact the merged entity's future performance. According to InvestingPro data, HSPO currently boasts a market capitalization of $87.57 million and is trading at a price-to-earnings (P/E) ratio of 32.25, reflecting a market sentiment that values the company's earnings relatively highly.
InvestingPro Tips suggest that HSPO's management has been actively engaged in share buybacks, indicating a possible confidence in the company's value. Additionally, HSPO is trading near its 52-week high, with a price 99.55% of that peak. This could signal strong market confidence or, as some analysts might suggest, a cautionary tale of a stock potentially being in overbought territory. It's important to note that HSPO does not pay dividends, which might influence investment decisions for those seeking regular income from their holdings.
For investors considering the potential of HSPO post-merger, it's noteworthy that the company has been profitable over the last twelve months. However, it also faces challenges with weak gross profit margins and short-term obligations exceeding liquid assets. These factors, along with the company's low price volatility, could be crucial for investors who are weighing the risks and opportunities presented by this Business Combination.
For more detailed analysis and additional InvestingPro Tips on HSPO, interested parties can visit https://www.investing.com/pro/HSPO. As of the latest update, there are 9 more InvestingPro Tips available, which could provide further insights into HSPO's financial health and market position.
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