Horizon Space Acquisition extends merger deadline

Published 28/03/2025, 21:06
Horizon Space Acquisition extends merger deadline

Horizon Space Acquisition I Corp. (NASDAQ:HSPO), a special purpose acquisition company with a market capitalization of $91.8 million, announced it has deposited an additional $120,000 into its trust account to extend the deadline for completing its initial business combination. According to InvestingPro data, the company’s stock has gained 0.52% year-to-date, trading at $11.61. This move, detailed in an 8-K filing with the Securities and Exchange Commission, allows the company an extra month, moving the deadline from March 27, 2025, to April 27, 2025.

The extension fee was provided by Squirrel Enlivened (Hong Kong) Technology Limited under the terms of a Business Combination Agreement dated September 16, 2024. This agreement is part of Horizon Space Acquisition’s ongoing efforts to finalize a merger with Squirrel Enlivened Technology Co., Ltd and its affiliates, collectively known as the Squirrel Companies.

To formalize this extension, Horizon Space Acquisition issued an unsecured promissory note to Squirrel Enlivened (Hong Kong) Technology Limited on Friday, March 28, 2025. The note carries no interest and its principal amount is due on the earlier of the completion of the business combination or the expiration of the company’s term.

The filing also includes forward-looking statements about the proposed business combination, cautioning that actual results may vary due to a number of risks and uncertainties. These statements outline expectations for the future financial and operational performance, market opportunities, and growth prospects of the combined entity post-merger. InvestingPro analysis indicates the company currently maintains a GOOD financial health score, though it faces challenges with a high P/E ratio of 40.18 and short-term liquidity concerns, as reflected in its current ratio of 0.09.

Investors are advised to read the forthcoming proxy statement/prospectus, which will provide more details about the business combination and the parties involved. This document will be available on the SEC’s website once filed.

The extension aligns with Horizon Space Acquisition’s amended and restated memorandum and articles of association, which allow for up to ten one-month extensions to complete a business combination, with the latest possible date being December 27, 2025.

The information reported is based on the company’s SEC filing and does not constitute an offer to sell or a solicitation of an offer to buy any securities. For deeper insights into HSPO’s valuation and 8 additional key investment tips, consider exploring InvestingPro’s comprehensive analysis tools and advanced financial metrics.

In other recent news, Horizon Space Acquisition I Corp. has extended the deadline for its initial business combination. The company now has until March 27, 2025, to finalize the merger, following a deposit of $120,000 into its trust account by Squirrel Enlivened (Hong Kong) Technology Limited. This move is part of a business combination agreement with the Squirrel Companies and includes the issuance of an unsecured promissory note for the same amount, which bears no interest. Additionally, Horizon Space Acquisition issued a $300,000 promissory note to its sponsor, Horizon Space Acquisition I Sponsor Corp., to bolster its working capital. This note is also unsecured, carries no interest, and is repayable upon the consummation of a business combination or the company’s term expiration. The sponsor may convert the note into private units of the company, highlighting Horizon’s efforts to secure necessary capital. These developments are part of Horizon Space’s broader strategy to complete its merger with the Squirrel Companies, aiming to enhance growth potential and market reach. Investors are advised to review forthcoming SEC filings for more detailed information on the business combination.

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

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