Plutonian Acquisition Corp. Announces Additional Contribution to Trust Account to Extend Period to Consummate Business Combination

Rhea-AI Summary

Plutonian Acquisition Corp. (NASDAQ: PLTN) announced an addition of $210,000 to its trust account by Big Tree Cloud International Group to extend the deadline for completing a business combination from May 15, 2024, to August 15, 2024.

This extension is facilitated by a promissory note from Plutonian to Big Tree Cloud, which is convertible into shares of common stock at $10.00 per unit. The note bears no interest.

The extension aims to provide additional time to finalize a business combination.

Positive

• Big Tree Cloud's $210,000 deposit increases financial reserves.
• The extension provides additional time to secure a business combination, potentially increasing shareholder value.
• The promissory note is interest-free, reducing financial burden.
• Convertible note at $10.00 per unit could be favorable, aligning with current stock value.

Negative

• The need for an extension suggests delays in securing a business combination, which might concern investors.
• The promissory note, though interest-free, implies future dilution of shares.
• Dependence on external funding (Big Tree Cloud) may indicate underlying financial constraints.

NEW YORK, May 15, 2024 /PRNewswire/ -- Plutonian Acquisition Corp. (NASDAQ: PLTN, the "Company"), a special purpose acquisition company, announced today that Big Tree Cloud International Group Limited ("Big Tree Cloud") has deposited into the Company's trust account (the "Trust Account") an aggregate of $210,000, in order to extend the period of time the Company has to complete a business combination for three additional months, from May 15, 2024 to August 15, 2024. The Company issued a promissory note to Big Tree Cloud with a principal amount equal to the amount deposited. The promissory note bears no interest and is convertible into the Company's shares of common stock at a price of $10.00 per unit (each unit is consisted of one share of common stock and one right to receive one-sixth (1/6) of a share of common stock) at the closing of a business combination by the Company. The purpose of the extension is to provide more time for the Company to complete a business combination.

About Plutonian Acquisition Corp.

Plutonian Acquisition Corp. is a Delaware corporation incorporated as a blank check company for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company's efforts to identify a prospective target business will not be limited to a particular industry or geographic region, although it intends to focus its search for a target business on companies engaged in metaverse technologies, tourism and e-commerce related industries in the Asia-Pacific, or APAC, region. The Company affirmatively excludes as an initial business combination target any company of which financial statements are audited by an accounting firm that the United States Public Company Accounting Oversight Board is unable to inspect for two consecutive years beginning in 2021 and any target company with China operations consolidated through a VIE structure.

Forward-Looking Statements

This press release includes forward-looking statements that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Such forward-looking statements, including the successful consummation of the Company's initial public offering, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

View original content:https://www.prnewswire.com/news-releases/plutonian-acquisition-corp-announces-additional-contribution-to-trust-account-to-extend-period-to-consummate-business-combination-302146052.html

SOURCE Plutonian Acquisition Corp.

FAQ

What is the recent announcement by Plutonian Acquisition Corp.?

Plutonian Acquisition Corp. announced an addition of $210,000 to its trust account by Big Tree Cloud to extend the business combination deadline to August 15, 2024.

Why did Plutonian Acquisition Corp. extend their business combination period?

The extension provides Plutonian Acquisition Corp. more time to finalize a business combination, aiming to increase shareholder value.

How much money was deposited into Plutonian Acquisition Corp.'s trust account for the extension?

Big Tree Cloud deposited $210,000 into Plutonian Acquisition Corp.'s trust account.

What are the terms of the promissory note issued by Plutonian Acquisition Corp.?

The promissory note is for $210,000, bears no interest, and is convertible into shares at $10.00 per unit.

When is the new deadline for Plutonian Acquisition Corp. to complete its business combination?

The new deadline is August 15, 2024.

What is the ticker symbol for Plutonian Acquisition Corp.?

The ticker symbol for Plutonian Acquisition Corp. is PLTN.