BofA warns Fed risks policy mistake with early rate cuts
DT Cloud Star Acquisition Corp. (NASDAQ:DTSQU) announced on Monday that it had entered into an unsecured promissory note with its sponsor, DT Cloud Star Management Limited. The note allows the company to borrow up to $300,000, which is intended to support its working capital needs.
The promissory note, dated October 28, 2024, is non-interest-bearing and is due on the date DT Cloud Star completes an initial business combination. The sponsor has the option to convert the note, in whole or in part, into private units at a conversion price of $10.00 per unit. These private units are the same as those issued during the company's initial public offering.
Furthermore, DT Cloud Star has agreed to provide registration rights for the conversion units, as per the terms set out in the registration rights agreement dated July 24, 2024. In the event that the company's initial business combination is not finalized, DT Cloud Star may repay the loan using its working capital held outside of the trust account, while ensuring that no funds from the trust account are utilized for this purpose.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.