Horizon Space Acquisition I Corp. (NASDAQ:HSPO), a special purpose acquisition company, has announced an extension to the deadline for completing its initial business combination. The company now has until October 27, 2024, to finalize its merger, extended from the previous deadline of September 27, 2024.
The extension was made possible by a $60,000 deposit into the company's trust account by Shenzhen Squirrel Enlivened Media Group Co. Ltd. This payment was part of an agreement related to a planned business combination with Squirrel Enlivened Technology Co., Ltd and its subsidiaries. The deposit allows Horizon Space Acquisition I Corp. to extend the deadline by one month.
In connection with the extension payment, Horizon Space Acquisition I Corp. issued an unsecured promissory note to Shenzhen Squirrel for the same amount. The note carries no interest and is set to be paid in full either when the business combination is completed or by the end of the company's term.
This extension gives Horizon Space Acquisition I Corp. and its associated entities additional time to satisfy closing conditions and complete the proposed merger. The company's sponsor, Horizon Space Acquisition I Sponsor Corp., has the option to further extend the merger deadline up to December 27, 2024, by making additional monthly deposits into the trust account.
In other recent news, Horizon Space Acquisition I Corp. has extended its deadline for completing an initial business combination. The company deposited an additional $60,000 into its trust account, which extended the merger deadline to September 27, 2024. This extension was facilitated by Shenzhen Squirrel Enlivened Media Group Co. Ltd., the potential merger partner, who paid the Monthly Extension Fee.
In exchange, Horizon Space Acquisition I Corp. issued an unsecured promissory note to the Target. This note does not accrue interest and is due at the earlier of the business combination's completion or the company's term end. The Target has the option to convert the note into private units of Horizon Space Acquisition I Corp., which include ordinary shares, warrants, and rights to receive shares upon the completion of a business combination.
InvestingPro Insights
As Horizon Space Acquisition I Corp. (NASDAQ:HSPO) navigates its extended merger timeline, InvestingPro data offers additional context for investors. The company's market capitalization stands at $87.57 million, reflecting its current valuation as a SPAC. Interestingly, HSPO is trading near its 52-week high, with its price at 91.96% of the peak, suggesting investor optimism about the potential merger.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could indicate confidence in the company's future prospects. Additionally, HSPO is noted for generally trading with low price volatility, which may be attractive to risk-averse investors during this critical period before the merger completion.
For those considering an investment in HSPO, it's worth noting that InvestingPro offers 7 additional tips that could provide further insights into the company's financial health and market position. These additional tips could be particularly valuable as investors assess the potential outcomes of the planned business combination with Squirrel Enlivened Technology Co., Ltd.
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