Constellation Acquisition secures extension for business combination

Published 29/04/2025, 21:50
Constellation Acquisition secures extension for business combination

Constellation Acquisition Corp I (OTC Pink:CSTAF), a special purpose acquisition company with a market capitalization of $96 million, announced today that it has drawn an additional $5,000 from its sponsor to extend the deadline for completing its initial business combination by one month to May 29, 2025. This extension, made possible by a unanimous board resolution on April 21, 2025, and deposited into the company’s trust account, is the third of up to eleven one-month extensions allowed by the company’s governing documents. The company’s stock has shown resilience, gaining 5% year-to-date and currently trading near its 52-week high of $12.40.

The funds were obtained through an unsecured promissory note with Constellation Sponsor LP, dated January 30, 2024. This strategic move gives the company extra time to secure a business combination deal. The note does not incur interest and will mature upon the closing of the business combination. If the company fails to consummate a business combination, the note will be repaid from any remaining funds outside of the trust account.

Constellation Acquisition Corp I, which operates under the industrial classification of blank checks, is based in New York and is listed on the OTC Pink Market with its ordinary shares (CSTAF), redeemable warrants (OTCQB:CSTWF), and units (OTCQB:CSTUF). The company’s efforts to complete a business combination are being closely watched by investors, particularly given its current financial position with a low current ratio of 0.01 and negative earnings per share. InvestingPro subscribers can access additional insights through exclusive ProTips and detailed financial metrics to better evaluate the company’s prospects.

This update is based on a press release statement filed with the SEC.

In other recent news, Constellation Acquisition Corp I announced an extension of its deadline for completing a business combination. The special purpose acquisition company secured an additional $5,000 in funding to move the deadline from February 28, 2025, to March 29, 2025, through an unsecured promissory note. This extension is part of a series of potential one-month extensions, with the possibility to extend up to January 29, 2026, if all monthly extensions are utilized. Constellation Acquisition’s sponsor, Constellation Sponsor LP, has agreed to contribute $5,000 per month to the company’s trust account for each extension. Shareholders approved amendments to the company’s charter to facilitate this extension and authorized the issuance of Class A ordinary shares to holders of Class B shares upon conversion. Following these developments, shareholders redeemed over 2.3 million Class A shares, resulting in an aggregate redemption of approximately $27.43 million. The remaining balance in the trust account stands at approximately $770,700, with 7,664,302 Class A ordinary shares still outstanding. These moves reflect Constellation Acquisition’s strategic efforts to finalize a suitable business combination within the extended timeframe.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.