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DT Cloud Star Acquisition Corporation (NASDAQ:DTSQ), currently trading near its 52-week high at $10.99 and valued at $93.64 million, announced Tuesday that it has entered into a non-redemption agreement with an unaffiliated third-party shareholder in connection with its upcoming shareholder meeting. The information is based on a press release statement included in a recent SEC filing. According to InvestingPro analysis, the stock appears overvalued at current levels.
According to the filing, the agreement was made with DT Cloud Star Management Limited, the company’s sponsor, and involves 600,000 ordinary shares of DT Cloud Star Acquisition Corporation. The shareholder has agreed not to redeem, or to rescind any redemption requests for, these shares at the shareholder meeting. In exchange, the sponsor has agreed to transfer 200,000 ordinary shares to the shareholder upon the closing of the company’s initial business combination.
The shareholder meeting was called to vote on, among other matters, an extension of the deadline to complete an initial business combination to October 26, 2026.
The non-redemption agreement will terminate on the earliest of the following: the date of the shareholder meeting, mutual written agreement of the parties, or the effectuation of the extension and the delivery of the 200,000 ordinary shares to the investor.
DT Cloud Star Acquisition Corporation is a blank check company incorporated in the Cayman Islands and listed on The Nasdaq Stock Market LLC under the symbols DTSQ, DTSQU, and DTSQR. The company maintains strong liquidity with a current ratio of 2.85, indicating its ability to meet short-term obligations effectively.
The company’s ordinary shares, units, and rights are registered pursuant to Section 12(b) of the Securities Exchange Act of 1934.
The summary of the non-redemption agreement is qualified in its entirety by reference to the full agreement, which is attached as an exhibit to the SEC filing.
In other recent news, DT Cloud Star Acquisition Corporation has made several announcements concerning its annual general meeting of shareholders. The company initially adjourned the meeting, which was set for October 7, to October 15, and has since further rescheduled it to October 20 and then to October 22. These changes were confirmed through filings with the Securities and Exchange Commission. Shareholders have been given the opportunity to change or revoke their votes on any proposals until the respective deadlines preceding each new meeting date. Additionally, DT Cloud Star Acquisition extended the deadline for shareholders to exercise their redemption rights, allowing them to withdraw requests through the company’s transfer agent, VStock Transfer, LLC. These developments reflect ongoing adjustments in the scheduling and administrative processes related to the company’s shareholder meeting.
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