If You Invested in Horizon Space Acquisition I Corp. (HSPO)

Horizon Space Acquisition I Corp. (NASDAQ: HSPO) is a special purpose acquisition company, or SPAC, classified in the Financial Services sector under shell companies. According to its public disclosures, HSPO is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The company is incorporated as an exempted company under the laws of the Cayman Islands.

HSPO’s securities are listed on The Nasdaq Stock Market LLC. Its capital structure includes units, ordinary shares, redeemable warrants and rights. Public filings describe units consisting of one ordinary share, one redeemable warrant to acquire one ordinary share, and one right to acquire one-tenth of one ordinary share. The ordinary shares, warrants, rights and units each trade under separate symbols on Nasdaq.

As a SPAC, Horizon Space Acquisition I Corp. raises capital in its initial public offering and deposits the proceeds into a trust account. The company’s governing documents and its investment management trust agreement set out the conditions under which HSPO must complete an initial business combination or, failing that, wind up and redeem public shares. Amendments to these documents, as described in its proxy materials and current reports, are focused on extending the timeframe to complete a business combination and modifying redemption-related limitations.

In its definitive proxy statement for an extraordinary general meeting, HSPO explains that it may consummate a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination, or otherwise cease operations except for the purpose of winding up if it does not complete such a transaction by specified termination dates. Shareholders have been asked to vote on proposals to extend these deadlines and to amend provisions relating to net tangible asset requirements and trust account liquidation timing.

HSPO’s filings also describe the role of its sponsor, Horizon Space Acquisition I Sponsor Corp., in funding monthly extension fees that are deposited into the company’s trust account to extend the deadline for completing a business combination. In connection with these extensions, the company has issued unsecured promissory notes to the sponsor, with terms that allow for possible conversion into private units of HSPO, subject to conditions described in its reports.

Horizon Space Acquisition I Corp. has reported that it previously entered into a Business Combination Agreement with Squirrel Enlivened Technology Co., Ltd and related entities, involving Squirrel Enlivened International Co., Ltd and Squirrel Enlivened Overseas Co., Ltd. This agreement outlined a proposed reorganization and merger structure, under which Squirrel-related entities and HSPO would be combined, and shares of Squirrel Enlivened International Co., Ltd would be listed on Nasdaq. The company later disclosed, through a termination agreement, that this Business Combination Agreement was terminated by mutual agreement, with no termination fee or other payment due between the parties.

Corporate governance matters for HSPO, including amendments to its memorandum and articles of association, trust agreement changes, director re-elections and auditor appointments, are presented to shareholders through proxy statements and voted on at extraordinary general meetings in lieu of annual general meetings. Voting results, including approvals of amendments and redemptions of public shares, are reported in current reports on Form 8-K.

Horizon Space Acquisition I Corp. has also filed a notification of late filing on Form 12b-25 for a quarterly report on Form 10-Q. In that filing, the company explains that additional time is required to assemble documents needed by its auditors and notes that changes in its results of operations are expected, primarily related to deposits of extension fees into the trust account associated with its business combination timeline.

HSPO’s disclosures emphasize that if it does not complete an initial business combination by its specified termination date (as extended in accordance with shareholder approvals), it will cease operations except for winding up, redeem public shares from the trust account, and proceed to liquidate and dissolve in accordance with Cayman Islands law and its governing documents.