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Distoken Acquisition Corporation (DIST0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing net income of $195,738, with interest income of $555,371 from investments held in the Trust Account. Operating costs were $326,185, and a provision for Chinese income taxes was $33,448.
As of September 30, 2024, the company had total assets of $43,420,760, primarily consisting of investments held in the Trust Account amounting to $43,355,649. Total liabilities were $2,625,947, with accounts payable and accrued expenses of $1,000,799.
The company reported a shareholders' deficit of $1,736,499 as of September 30, 2024, compared to $66,145 as of December 31, 2023. This change is attributed to accretion for ordinary shares to redemption amount and net income.
Distoken Acquisition Corporation has entered into a Business Combination Agreement with Youlife Group Inc. and related entities. The agreement includes provisions for merging with Youlife, with Distoken becoming a wholly-owned subsidiary of Pubco.
On November 14, 2024, the company held an extraordinary general meeting where shareholders approved an extension to the deadline for completing a Business Combination to November 18, 2025. In connection with this, 3,229,522 ordinary shares were redeemed, resulting in $36.3 million being removed from the Trust Account.
The company plans to extend the time to complete a Business Combination by one month from November 18, 2024, to December 18, 2024, by depositing a $30,000 monthly extension payment into the Trust Account.
Distoken Acquisition Corporation continues to explore potential business combinations and acknowledges the challenges posed by high redemption rates in the SPAC market, which may require additional financing to complete a Business Combination.
The filing also details various financial agreements, including a promissory note issued to the Sponsor for working capital needs and an extension note for monthly deposits into the Trust Account to extend the Business Combination deadline.
The company faces liquidity challenges and substantial doubt about its ability to continue as a going concern if a Business Combination is not completed by the extended deadline.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Distoken Acquisition Corporation quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.