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Distoken Acquisition Corporation (DIST0.00%) has filed its annual report on Form 10-K for the fiscal year ended December 31, 2024. The report is available for review filing.
Distoken Acquisition Corporation is a blank check company formed in the Cayman Islands with the purpose of effecting a business combination. As of December 31, 2024, the company had not commenced operations and will not generate operating revenues until a business combination is completed.
The company completed its initial public offering on February 17, 2023, raising $69 million through the sale of 6.9 million units. Each unit consists of one ordinary share, one redeemable warrant, and one right. The proceeds from the offering were placed in a trust account.
The company has extended the deadline to complete its initial business combination to November 18, 2025, with the approval of its shareholders. The extension allows the company additional time to identify and complete a suitable business combination.
On May 17, 2024, Distoken entered into a business combination agreement with Youlife International Holdings Inc. The agreement outlines the merger of Youlife with a subsidiary of Distoken, resulting in Youlife becoming a wholly-owned subsidiary of Distoken.
The company has issued promissory notes to its sponsor to provide working capital and fund extension payments. As of December 31, 2024, the company had $764,274 in outstanding borrowings under these notes.
The report highlights various risks and uncertainties, including the possibility of not completing a business combination within the specified time frame, which could result in the liquidation of the company.
Distoken's management is focused on identifying a target business in the technology sector with primary operations in Asia. The company aims to leverage its management team's experience to add value to the target business through access to U.S. capital markets.
The company has identified a material weakness in its internal control over financial reporting and is taking steps to address this issue. The management is committed to improving its financial reporting processes.
Distoken's financial statements for the year ended December 31, 2024, show net income of $37,131, primarily due to interest earned on investments held in the trust account. The company continues to incur costs related to its search for a business combination.
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 annual 10-K report dated March 7, 2025. To report an error, please email earnings@qz.com.