Golden Star Acquisition Corporation (NASDAQ:GODN), a special purpose acquisition company, has deposited the tenth monthly extension fee of $50,000 into its trust account, as reported today. This move is part of a series of extensions agreed upon to allow the company more time to complete its initial business combination.
The series of extensions began on January 10, 2024, when the company's sponsor, G-Star Management Corporation, requested an extension of the deadline to complete a business combination until February 4, 2025. This request was approved by the company's board of directors and involved the sponsor depositing monthly fees into the trust account.
Originally set at $230,000 per month, the fee was later amended to $0.02 per outstanding public share starting on April 4, 2024. An extraordinary general meeting of shareholders held on July 3, 2024, further amended the monthly extension fee to the lesser of $50,000 or $0.02 per outstanding public share.
As of today, the sponsor has followed through with the agreed-upon terms, depositing the required fees into the trust account, which serves as a safeguard for the company's public shareholders during the extension period.
Golden Star Acquisition Corp, headquartered in New York, is classified under the "Blank Checks" industry and is focused on identifying a merger target within the real estate and construction sectors. The company's securities, including units (NASDAQ:GODNU), ordinary shares (NASDAQ:GODN), and rights (NASDAQ:GODNR), are listed on The Nasdaq Stock Market LLC.
In other recent news, Golden Star Acquisition Corp has been diligently working on its business operations. The company has made a series of monthly extension fee deposits into its trust account, demonstrating its commitment to securing a business combination. The most recent deposit marks the ninth of its kind, amounting to $50,000, as part of the company's ongoing efforts to extend the deadline for completing an initial business combination.
Golden Star Acquisition Corp has also extended its merger deadline with Gamehaus Inc. until February 4, 2025, according to recent SEC filings. This strategic move provides the company with additional time to finalize their business combination with the Cayman Islands-based company.
Moreover, Golden Star Acquisition Corp has adjusted its shareholder fee structure. Following a shareholder meeting, the monthly fee was amended to the lesser of $50,000 for all outstanding public shares or $0.02 per outstanding public share. The sponsor, G-Star Management Corporation, has complied with this new arrangement, resulting in recent deposits into the trust account.
In addition, the company has postponed its extraordinary general meeting, originally scheduled for an earlier date, to allow more time for shareholder engagement. The focus of the meeting will be on approving a reduced monthly fee to extend the deadline for an initial business combination. The deadline for shareholders to redeem their ordinary shares or withdraw any previously submitted redemption requests has also been extended.
InvestingPro Insights
Golden Star Acquisition Corporation's recent deposit of the extension fee aligns with its strategy to secure more time for completing an initial business combination. This approach is reflected in some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Golden Star Acquisition Corporation has a market capitalization of $50.06 million USD. The company's P/E ratio stands at 43.83, while its adjusted P/E ratio for the last twelve months as of Q2 2024 is 23.81. These figures suggest that investors are placing a premium on the company's potential future earnings, which is typical for SPACs still seeking a merger target.
InvestingPro Tips highlight that the stock generally trades with low price volatility, which could be appealing to investors looking for stability during the extended search period. Additionally, the company is profitable over the last twelve months, with a basic EPS (Continuing Operations) of $0.25 USD for the same period.
It's worth noting that Golden Star Acquisition Corporation does not pay a dividend to shareholders, which is common for SPACs focusing on growth through acquisition rather than income distribution. This aligns with the company's current strategy of preserving capital for a potential business combination.
For investors interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for Golden Star Acquisition Corporation, providing a deeper understanding of the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.