425: Horizon Space Acquisition I Corp. and Squirrel Enlivened International Co., Ltd. Announce Confidential Submission of Registration Statement for Proposed Business Combination

Horizon Space Acquisition I Corp. (HSPO) and Squirrel Enlivened International Co., Ltd have confidentially submitted a draft Registration Statement to the SEC for their proposed business combination.

Summary

• Horizon Space Acquisition I Corp. (HSPO), a SPAC, and Squirrel Enlivened International Co., Ltd (Squirrel Cayman), a brand marketing and strategy consulting company, announced the confidential submission of a draft Registration Statement on Form F-4 to the SEC on September 19, 2024.
• The Registration Statement includes a preliminary proxy statement and prospectus related to the proposed business combination.
• The business combination agreement is dated September 16, 2024.
• Upon completion of the business combination, shares of Squirrel Cayman will be listed on The Nasdaq Stock Market LLC.
• Squirrel Cayman is a holding company of Shenzhen Squirrel Enlivened Media Group Co., Ltd (Shenzhen Squirrel).
• Squirrel provides brand marketing and strategy consulting solutions, combining rational and emotional marketing.
• The consummation of the Business Combination is subject to the satisfaction or waiver by the respective parties of a number of conditions, including but not limited to, the approval of the Business Combination Agreement and the Business Combination by HSPOs shareholders.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive, reflecting the standard language used in merger announcements. The document focuses on the process of the business combination and the potential benefits, but also acknowledges the inherent risks and uncertainties.

Positives

• The proposed business combination could provide Squirrel Cayman with access to public markets and capital.
• Listing on Nasdaq could increase Squirrel Cayman's visibility and credibility.
• The combined company could benefit from synergies between HSPO's and Squirrel Cayman's businesses.

Risks

• The Registration Statement has not yet become effective and the information contained therein is subject to change.
• The consummation of the business combination is subject to various conditions, including shareholder approval.
• The inability to complete the proposed Business Combination.
• The inability to recognize the anticipated benefits of the proposed Business Combination, which may be affected by, among other things, the amount of cash available following any redemptions by HSPO shareholders.
• The ability to meet Nasdaqs listing standards following the consummation of the proposed Business Combination.
• HSPO or Squirrel Companies limited operating history.
• General economic and market conditions impacting demand for the services of Squirrel Companies.

Future Outlook

The document outlines the intention to complete a business combination, with Squirrel Cayman's shares to be listed on Nasdaq upon completion, subject to customary closing conditions and regulatory approvals.

Management Comments

• Squirrel provides brand marketing and strategy consulting solutions to brands, with a novel methodology combining rational marketing with emotional marketing.
• Squirrel helps brands expand and grow their businesses by providing a combination of brand marketing solutions, including digital marketing, blockbuster product development, and brand image enhancement, as well as strategy consulting solutions.
• It harnesses the power of technology, innovation and creation to drive significant business growth for a wide array of blue-chip and start-up companies in China.

Industry Context

The announcement reflects the ongoing trend of SPACs seeking merger targets, particularly in high-growth sectors like brand marketing and strategy consulting.

Stakeholder Impact

• Shareholders of HSPO will have the opportunity to vote on the proposed business combination.
• If the business combination is completed, shareholders of HSPO will receive shares of Squirrel Cayman.
• The business combination could create value for shareholders of both HSPO and Squirrel Cayman.
• Employees of Squirrel Companies may benefit from the increased resources and opportunities of the combined company.

Next Steps

• Squirrel Cayman intends to file a registration statement on Form F-4 with the SEC.
• HSPO will mail a definitive proxy statement to its shareholders.
• HSPO shareholders will vote on the proposed business combination.
• The parties will work to satisfy the closing conditions for the business combination.

Key Dates