In a recent filing with the Securities and Exchange Commission, Distoken Acquisition Corp (NASDAQ:DIST) announced a significant extension for completing its initial business combination, moving the deadline from November 18, 2024, to November 18, 2025. This decision was approved at an extraordinary general meeting held on Thursday, November 14, 2024.
The company, a blank check entity also known as a special purpose acquisition company (SPAC), is based in the Cayman Islands and has been seeking a business combination in the real estate and construction sectors. Distoken Acquisition Corp’s sponsor, Xiaosen Sponsor LLC, has agreed to provide up to $360,000 to be deposited into the company's trust account to support the extension. This will be done through a promissory note which will deposit $30,000 monthly into the trust account starting on November 19, 2024, until the new deadline or until a business combination is completed.
The additional funds will amount to roughly $0.046 per share each month for the remaining public shares that have not been redeemed. The first installment is expected to be deposited by November 26, 2024, increasing the trust account to approximately $11.28 per outstanding public share.
The filings also disclosed that shareholders approved the re-election of John Wallace, Joseph Valenza, and Ning Wang as Class I directors until the 2026 general meeting. Additionally, Marcum LLP has been ratified to continue as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024.
Following the approval of the extension, shareholders holding 3,229,522 public shares exercised their right to redeem these shares for a pro rata portion of the funds in the trust account, which will reduce the account by approximately $36.3 million, equating to about $11.24 per share. After these redemptions, 652,170 public shares will remain outstanding.
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