Horizon Space Acquisition I Corp. (NASDAQ:HSPO), a $89 million market cap SPAC currently trading near its 52-week high of $11.65, has announced an amendment to its Trust Agreement and Charter, following a shareholder meeting on Monday. According to InvestingPro analysis, the company appears slightly overvalued at current levels. The company, which operates as a special purpose acquisition company (SPAC), is now allowed to extend the deadline to liquidate its trust account by up to twelve months, until December 27, 2025.
The shareholders' decision, made during the extraordinary general meeting, permits the company to commence liquidation of the trust account by December 27, 2024. However, Horizon Space Acquisition I Corp. may opt for up to twelve one-month extensions. InvestingPro data reveals potential liquidity concerns, with a current ratio of 0.09 and short-term obligations exceeding liquid assets.
Each extension requires a monthly fee of $120,000 to be deposited into the trust account. Failure to deposit the extension fee by the 27th of any month until November 27, 2025, will obligate the trustee to begin liquidating the account within two weeks from such date.
Additionally, the shareholders approved changes to the company's Amended and Restated Memorandum and Articles of Association, allowing Horizon Space Acquisition I Corp. to either complete a business combination or to wind up operations and redeem or repurchase 100% of the company's public shares by the new termination date.
The amendments come as Horizon Space Acquisition I Corp. works towards completing a business combination within the newly established timeframe. As part of the voting outcomes, Angel Colon was re-elected as a Class I director of the company, and UHY LLP was ratified and approved to serve as the independent registered public accounting firm for the fiscal years ending December 31, 2023, and 2024.
In connection with the approval of the Charter Amendment Proposal and the Trust Amendment Proposal, 3,663,651 Ordinary Shares were redeemed. The company's filings with the Securities and Exchange Commission (SEC) on Thursday provide further details on the amendments and the outcomes of the shareholder meeting.
This move is significant for investors and shareholders, who now have a clearer timeline regarding the company's future operations and potential business combination efforts. With a P/E ratio of 40.18 and an overall Financial Health Score of "Fair," investors seeking deeper insights into HSPO's financial metrics and growth potential can access additional analysis through InvestingPro, which offers 8 more exclusive ProTips and comprehensive financial health indicators.
In other recent news, Horizon Space Acquisition I Corp. has announced multiple extensions to its merger deadline with Shenzhen Squirrel Enlivened Media Group Co. Ltd, facilitated by a series of $60,000 deposits into the company's trust account.
These extensions provide Horizon Space with additional time to satisfy closing conditions and finalize the merger plans. In exchange for each extension payment, Horizon issued unsecured promissory notes to Shenzhen Squirrel for the same amount, which carry no interest and are set to be paid in full either when the business combination is completed or by the end of the company's term.
In a bid to support its operations until the completion of the initial business combination, Horizon Space has issued an unsecured promissory note of $400,000 to its sponsor, Horizon Space Acquisition I Sponsor Corp. This note, which carries no interest, is set to mature upon the completion of the business combination or at the end of the company's term.
In response to potential delisting from the Nasdaq Global Market due to non-compliance with the minimum shareholder requirement, Horizon Space Acquisition I Corp. has applied to transfer its listing to the Nasdaq Capital Market, which has less stringent requirements.
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