SoFi CEO enters prepaid forward contract on 1.5 million shares
Horizon Space Acquisition II Corp. (NASDAQ:HSPT), a $92.8 million market cap company currently trading at $10.35, announced Monday that it has issued an unsecured promissory note with a principal amount of $300,000 to its sponsor, Horizon Space Acquisition II Sponsor Corp. The proceeds from the note may be drawn down as needed until the company completes its initial business combination and will be used for general working capital purposes, according to a statement in a Securities and Exchange Commission filing.
The note carries no interest and is payable in full upon the earlier of either the completion of the company’s business combination or the expiration of the company’s term. The sponsor, or its registered assignees or successors, has the right—but not the obligation—to convert the outstanding principal of the note into private units of the company. Each unit consists of one ordinary share, one warrant, and one right to receive one-tenth of an ordinary share upon the completion of a business combination. The number of units to be issued upon conversion is determined by dividing the outstanding principal by $10.00 per unit.
The note specifies several events that would constitute a default, including failure to pay the principal within five business days of the maturity date, the commencement of bankruptcy proceedings, breach of obligations, cross defaults, enforcement proceedings, or any unlawfulness or invalidity in connection with the performance of obligations. In the event of a default, the note may be accelerated.
The issuance of the note was made under an exemption from registration pursuant to Section 4(a)(2) of the Securities Act of 1933. For investors seeking deeper insights into HSPT’s financial health and valuation metrics, InvestingPro offers exclusive access to over 8 additional key indicators and financial health scores that can help inform investment decisions. Any units issued upon conversion of the note, and the underlying securities, will be subject to transfer restrictions until the completion of the company’s initial business combination and will be entitled to registration rights.
Horizon Space Acquisition II Corp.’s ordinary shares, units, and rights are listed on the Nasdaq Stock Market under the symbols HSPT, HSPTU, and HSPTR, respectively. The information is based on a press release statement included in the company’s SEC filing.
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