DT Cloud Acquisition Corp, a blank check company incorporated in the Cayman Islands, has reported its financial performance and strategic developments in its recent 10-K filing. The company completed its initial public offering (IPO) on February 23, 2024, raising gross proceeds of $69 million from the sale of 6.9 million units, each priced at $10.00. Additionally, a private placement with its sponsor, DT Cloud Capital Corp, generated $2.35 million. As of December 31, 2024, the company reported a net income of $2.27 million, primarily from dividend income earned on cash and investments held in trust, offset by operating costs of approximately $734,000.
Compared to the previous fiscal period, DT Cloud Acquisition Corp has seen a significant turnaround, moving from a net loss of $87,271 in 2023 to a net income in 2024. The company has also extended its deadline to complete a business combination to April 23, 2025, following shareholder approval for an extension amendment proposal. This extension allows the company to pursue potential acquisition targets for up to 27 months from the IPO closing date, contingent on additional funding from insiders.
In terms of operational developments, the company is actively seeking a target business for acquisition, with a focus on sectors that demonstrate growth potential. The management team, led by CEO Shaoke Li, is leveraging its extensive experience and industry relationships to identify suitable candidates. As of the filing date, the company had two executive officers and reported a working capital deficit of approximately $129,000, indicating a need for careful financial management as it moves forward.
The filing also highlights the company's proposed business combination with Maius Pharmaceutical Co., Ltd., which is subject to various regulatory approvals and conditions. The completion of this transaction is contingent upon securing at least $10 million in private investment in public equity (PIPE) financing, which remains uncertain. The company has acknowledged the potential risks associated with regulatory scrutiny, particularly concerning its operations in China, where it may face challenges related to foreign investment regulations and cybersecurity reviews.
Looking ahead, DT Cloud Acquisition Corp remains optimistic about its ability to identify and complete a business combination that aligns with its strategic goals. However, the company has cautioned that its future performance is subject to various risks, including market conditions, regulatory changes, and the potential for increased competition in the special purpose acquisition company (SPAC) landscape. The management team is committed to navigating these challenges while maximizing shareholder value through a successful business combination.
About DT Cloud Acquisition Corp
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