Constellation Acquisition Corp I (OTCQX:CSTAF), a special purpose acquisition company, has announced the drawdown of $55,000 in extension funds to prolong the deadline for its initial business combination. The extension, confirmed on Thursday, allows the company an additional month until October 29, 2024, to finalize its business combination plans.
The funds, drawn on September 26, 2024, come from an unsecured promissory note dated January 30, 2024, between Constellation Acquisition Corp I and Constellation Sponsor LP. This move represents the eighth one-month extension out of a possible eleven, as permitted by the company's amended and restated memorandum and articles of association.
The deposit into the company's trust account is intended to benefit public shareholders by providing more time to secure a suitable business combination target. The promissory note does not accrue interest and is set to mature upon the closing of the company's initial business combination. However, if a business combination is not achieved, repayment of the note will be made from funds that are external to the company’s trust account, if any are available.
Constellation Acquisition Corp I specializes in blank check offerings, which are typically used to raise capital for acquiring other businesses. The company's securities, including Class A ordinary shares, redeemable warrants, and units, are traded on the OTCQX Best Market and OTCQB Venture Market under the ticker symbols CSTAF, CSTWF, and CSTUF, respectively.
This extension is a strategic step for Constellation Acquisition Corp I as it continues to search for a business combination that aligns with its investment criteria. The company's headquarters are located at 200 Park Avenue, 32nd Floor, New York, NY 10166. This announcement is based on a press release statement from the company.
In other recent news, Constellation Acquisition Corp I has secured an extension for its initial business combination deadline. The company has drawn $55,000 from an unsecured promissory note, depositing the funds into its trust account to facilitate an extension from July to August 2024. This is the sixth extension, out of a possible eleven, permitted by the company's governing documents, offering additional time to finalize its initial business combination.
The promissory note, established between Constellation Acquisition Corp I and Constellation Sponsor LP, does not accrue interest and is set to mature upon the closing of the company's initial business combination. The note's terms specify that repayment is dependent on the completion of a business combination, with repayment sourced from funds outside the company's trust account, if any are available.
The extension grants Constellation Acquisition Corp I an additional month to secure a business combination, a pivotal process for a special purpose acquisition company. Specific details regarding potential business combination targets or negotiation progress remain undisclosed.
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