Alpha Star Acquisition Faces Delisting from Nasdaq Due to Failure to Meet Business Combination Deadline

Alpha Star Acquisition Corporation (NASDAQ: ALSAU) received notice from the Nasdaq Stock Market LLC on December 16, 2024, stating that its securities would be delisted. The letter from Nasdaq outlined that the company’s Ordinary Shares, Units, Rights, and Warrants would cease trading on December 23, 2024. The delisting decision was a result of the company’s failure to complete its initial business combination by the required deadline of December 13, 2024, violating Nasdaq Listing Rule IM-5101-2.

According to Nasdaq rules, special purpose acquisition companies (SPACs) are expected to finalize one or more business combinations within 36 months of their IPO registration statement’s effectiveness. Since Alpha Star Acquisition did not meet this requirement, its securities became subject to delisting.

The company chose not to contest Nasdaq’s decision to delist its securities. Consequently, trading of Alpha Star Acquisition’s securities on Nasdaq will be suspended from December 23, 2024. The company intends to seek listing of its securities on the OTC market under the same ticker symbols post-delistment. Despite the delisting, Alpha Star’s planned business combination with OU XDATA GROUP, a company incorporated in Estonia, remains unaffected as both parties strive towards completing the merger. The merged entity is expected to apply for listing their securities on the Nasdaq Stock Market following the completion of the business combination.

To address the situation, Alpha Star Acquisition filed a definitive proxy statement on December 16, 2024, for an extraordinary general meeting of shareholders scheduled for December 27, 2024. The meeting aims to approve amendments to the investment management trust agreement between Alpha Star and Wilmington Trust, N.A., providing the company the flexibility to extend the liquidation period of the Trust Account established during the IPO up to six additional times, each for a month, until June 15, 2025, by depositing $35,000 for each extension. The company anticipates utilizing this option to extend the business combination period.

Although Alpha Star Acquisition’s securities will be delisted from Nasdaq, the company reaffirmed its commitment to remaining transparent under the Securities Exchange Act of 1934, continuing to provide financial and operational disclosures.

The content of this disclosure contains forward-looking statements subject to uncertainties and changes. Alpha Star Acquisition emphasized that there are inherent risks and uncertainties that could lead to actual results differing from the expectations laid out in these statements. The company indicated ongoing efforts to complete the business combination in cooperation with OU XDATA GROUP.

Please be advised that any material contained herein constitutes forward-looking statements. These statements should be interpreted considering the uncertainties and conditions that may impact future developments. Alpha Star Acquisition does not undertake to update or revise forward-looking statements post events or circumstances other than those mandated by law.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Alpha Star Acquisition’s 8K filing here.

Alpha Star Acquisition Company Profile

Alpha Star Acquisition Corporation does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to focus on businesses in clean energy, internet and high technology, financial technology, health care, consumer and retail, energy and resources, manufacturing, and education sectors in Asia.