In a recent filing with the Securities and Exchange Commission, Distoken Acquisition Corporation, a special purpose acquisition company, announced an extension of its deadline to complete an initial business combination.
The company's shareholders approved the amendment to extend the deadline from November 18, 2024, to November 18, 2025, providing an additional year for the company to secure a merger or acquisition target.
The extension came as a result of a shareholder meeting held on November 14, 2024, where multiple proposals were voted upon. One key outcome of the meeting was the decision to extend the business combination timeframe, which is a common practice for companies that have not yet identified a suitable merger partner.
Additionally, the SEC filing disclosed that shareholders owning 3,229,522 of Distoken's public shares opted to redeem their shares. Consequently, approximately $36.3 million, or roughly $11.24 per share, will be withdrawn from the company's trust account to fulfill these redemptions. After these redemptions, Distoken Acquisition Corp will have 652,170 public shares remaining.
The company has also assured that no funds from the trust account, including any accrued interest, will be used to pay for potential Chinese income taxes that might arise prior to or during the consummation of a business combination.
Distoken Acquisition Corp, which is listed on The Nasdaq Stock Market under the ticker symbols DISTU for its units, DIST for its ordinary shares, DISTW for its redeemable warrants, and DISTR for its rights, is categorized under the "blank check" industry sector. The company, based in Kunming, Yunnan, China, is focused on identifying a prospective target business in the real estate and construction sector.
This report is based on a press release statement and provides a factual summary of the company's SEC filing, without speculating on potential industry impacts or broader market trends.
In other recent news, Distoken Acquisition Corp announced a significant extension for its initial business combination deadline, now set for November 18, 2025. This decision, approved at an extraordinary general meeting, allows for more time in the pursuit of a business combination in the real estate and construction sectors.
To support the extension, Distoken Acquisition Corp's sponsor, Xiaosen Sponsor LLC, has agreed to deposit up to $360,000 into the company's trust account via a promissory note. This will result in roughly $0.046 per share each month for the remaining public shares.
The additional funds are expected to increase the trust account to approximately $11.28 per outstanding public share. In other updates, shareholders re-elected John Wallace, Joseph Valenza, and Ning Wang as Class I directors until the 2026 general meeting, with Marcum LLP continuing as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
Following the extension approval, shareholders holding 3,229,522 public shares redeemed these shares, reducing the trust account by approximately $36.3 million, equating to about $11.24 per share. After these redemptions, 652,170 public shares remain outstanding. These are some of the recent developments surrounding Distoken Acquisition Corp.
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