Golden Star Acquisition Corp (NASDAQ:GODN), a special purpose acquisition company, announced today that its shareholders have approved a proposal to extend the deadline for completing its initial business combination. The extension grants the company until February 4, 2025, to finalize a merger or acquisition.
During an extraordinary general meeting held today, shareholders voted on the Extension Fee Reduction Proposal, which also included an agreement for the sponsor to deposit a monthly fee into the trust account to support the extension. The monthly fee will be the lesser of $50,000 for all outstanding public shares or $0.02 for each outstanding public share, starting from the first month following the proposal's approval and continuing until the new deadline.
The proposal passed with 3,129,399 votes for and 2,831,124 votes against, with no abstentions. As a result, the Adjournment Proposal, which would have allowed for further solicitation and voting if necessary, was not presented.
In conjunction with the approval of the Extension Fee Reduction Proposal, 2,801,372 ordinary shares were redeemed by shareholders for approximately $10.82 per share, totaling about $30.3 million.
Golden Star Acquisition Corp, based in New York, is focused on identifying a prospective target in the real estate and construction sector. The company's securities, including units (GODNU), ordinary shares (GODN), and rights (GODNR), are listed on The Nasdaq Stock Market LLC.
"In other recent news, Golden Star Acquisition Corp has decided to postpone an extraordinary general meeting initially scheduled for an earlier date. The meeting, now set for July 3, 2024, will focus on approving a reduced monthly fee into the trust account to extend the deadline for an initial business combination. The decision to reschedule was made to allow more time for shareholder engagement. In addition, the deadline for shareholders to redeem their ordinary shares or to withdraw any previously submitted redemption requests has been extended to 5 p.m. Eastern Time on July 1, 2024.
In other developments, Golden Star Acquisition Corp has extended its existing merger agreement with Gamehaus Inc. until February 4, 2025. This extension, disclosed in a recent SEC filing, affords Golden Star additional time to finalize the business combination with the Cayman Islands-based company. The initial agreement, announced in 2023, involved Golden Star merging with Gamehaus and its related entities, with Gamehaus becoming a publicly traded entity as a result. These are among the recent developments concerning Golden Star Acquisition Corp."
InvestingPro Insights
As Golden Star Acquisition Corp (NASDAQ:GODN) navigates the SPAC landscape with an extended timeline for its initial business combination, investors may consider several key metrics and insights from InvestingPro. The company, with a market cap of $79.3M, is trading at a high earnings multiple with a P/E ratio recently at 48.22. This valuation reflects investor anticipation of future growth but also suggests caution as the stock trades near its 52-week high, at 90.02% of this peak value.
InvestingPro Tips highlight that while Golden Star Acquisition Corp has been profitable over the last twelve months, it does not pay dividends to shareholders, which may influence investment strategies for those seeking income-generating assets. Additionally, the stock's low price volatility could appeal to investors looking for stability in their SPAC investments. Prospective investors should note that the company's short-term obligations exceed its liquid assets, a factor that may warrant closer scrutiny of its financial health.
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