NEW YORK, NY / ACCESSWIRE / September 16, 2024 / Squirrel Enlivened International Co., Ltd ("Squirrel Cayman"), a brand marketing and strategy consulting company, and Horizon Space Acquisition I Corp. ("HSPO") (Nasdaq:HSPO), a publicly traded special purpose acquisition company, today announced that they have entered into an Agreement and Plan of Merger (the "Business Combination Agreement").
Squirrel Cayman is a holding company of Shenzhen Squirrel Enlivened Media Group Co., Ltd ("Shenzhen Squirrel" or "Squirrel"). 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.
Upon the completion of the business combination of Squirrel Cayman and HSPO and related transactions pursuant to the Business Combination Agreement (the "Business Combination"), shares of Squirrel Cayman will be listed on The Nasdaq Stock Market LLC ("Nasdaq").
Transaction Overview
On September 16, 2024, HSPO, Squirrel Enlivened Technology Co., Ltd., a Cayman Islands exempted company ("Squirrel HoldCo"), Squirrel Cayman, and Squirrel Enlivened Overseas Co., Ltd., a Cayman Islands exempted company and a wholly-owned subsidiary of Squirrel Cayman ("Merger Sub"), entered into the Business Combination Agreement, pursuant to which, among other things, (a) Squirrel HoldCo will merge with and into Squirrel Cayman, whereupon the separate existence of Squirrel HoldCo will cease, and Squirrel Cayman will be the surviving company (the "Reorganization") as a result of which all issued and outstanding shares of Squirrel HoldCo immediately prior to the Reorganization shall be cancelled and automatically converted into a right to receive the aggregated amount of 20,000,000 shares of ordinary shares of Squirrel Cayman, and (b) at least one (1) business day after the closing of the Reorganization (the "Reorganization Closing"), Merger Sub will merge with and into HSPO, whereupon the separate existence of Merger Sub will cease, and HSPO will be the surviving company (the "Merger"). As a result of the Reorganization and the Merger, among other things, (a) all of the issued and outstanding securities of Squirrel HoldCo immediately prior to the filing of the plan of merger with respect to the Reorganization (the "Plan of Reorganization") to the Registrar of Companies of the Cayman Islands, or such later time as may be specified in the Plan of Reorganization (the "Reorganization Effective Time") shall no longer be outstanding and shall automatically be cancelled, in exchange for the right of the holders thereof to receive a certain number of securities of Squirrel Cayman as described below, and (b) all of the issued and outstanding securities of HSPO immediately prior to the filing of the plan of merger with respect to the Merger (the "Plan of Merger") to the Registrar of Companies of the Cayman Islands, or such later time as may be specified in the Plan of Merger (the "Merger Effective Time") shall no longer be outstanding and shall automatically be cancelled, in exchange for the right of the holders thereof to receive substantially equivalent securities of Squirrel Cayman.
No assurances can be made that the Business Combination will be consummated on the terms or timeframe currently contemplated, or at all. Any transaction would be subject to the approval of certain companies' boards, regulatory and shareholder approvals as well as other customary conditions.
Additional information about the Business Combination, including a copy of the Business Combination Agreement, will be provided in a Current Report on Form 8-K to be filed by HSPO with the Securities and Exchange Commission (the "SEC") and will be available at www.sec.gov.
Management Commentary
Mr. Angxiong Zhao, the co-founder, Chief Executive Officer and director of Shenzhen Squirrel commented, "We are thrilled to enter into the Business Combination Agreement and excited about the contemplated Nasdaq listing, which will provide Squirrel with a platform to connect with growth capital and investors across the global. The additional capital and financial flexibility from this transaction will empower our solutions and fuel our growth and expansion. We believe that empowered by the support from the public capital markets, we are well positioned to further grow business, expand our client base, upgrade our technology, and enhance our innovation."
Mr. Michael ("Mingyu") Li, the CEO, Chairman and director of HSPO commented, "We are excited to announce signing the Business Combination Agreement. Squirrel's in-depth understanding of e-commerce in China, its expertise in China's brand marketing and strategy consulting industry, and its experienced management team present significant growth potential. We are confident that our combination and collaboration will accelerate the success of Squirrel."
Advisors
Sidley Austin LLP is serving as U.S. legal counsel to Shenzhen Squirrel. Robinson & Cole LLP is serving as U.S. legal counsel to HSPO.
About Squirrel
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.
About HSPO
HSPO is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities.
Important Information About the Proposed Business Combination and Where to Find It
In connection with the proposed Business Combination, Squirrel Cayman intends to file with the SEC a registration statement on Form F-4, which will include a preliminary proxy statement containing information about the proposed Business Combination and the respective businesses of Squirrel Cayman and its subsidiaries, including among others Shenzhen Squirrel (collectively as enumerated in accordance with the Business Combination Agreement, the "Squirrel Companies") and HSPO, as well as the prospectus relating to the offer of the Squirrel Cayman securities to be issued to in connection with the completion of the proposed Business Combination. After the registration statement is declared effective, HSPO will mail a definitive proxy statement and other relevant documents to its shareholders as of the record date established for voting on the proposed Business Combination.
Investors and security holders are advised to read, when available, the registration statement, proxy statement/prospectus and any other relevant documents filed with the sec carefully and in their entirety if and when they become available because they will contain important information about the business combination and the parties to the business combination. Investors and security holders will be able to obtain copies of these documents (if and when available) and other documents filed with the SEC free of charge at www.sec.gov. Shareholders of HSPO will also be able to obtain copies of the proxy statement/prospectus without charge, once available, at the SEC's website at www.sec.gov.
Participants in the Solicitation
Squirrel Companies and HSPO and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies from HSPO's shareholders with respect to the proposed Business Combination. Information regarding HSPO's directors and executive officers is available in HSPO's filings with the SEC. Additional information regarding the persons who may, under the rules of the SEC, be deemed to be participants in the proxy solicitation relating to the proposed Business Combination and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus when it becomes available.
No Offer or Solicitation
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act").
Forward-Looking Statements
This press release includes forward looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts and may be accompanied by words that convey projected future events or outcomes, such as "believe," "may," "will," "estimate," "continue," "anticipate," "design," "intend," "expect," "could," "plan," "potential," "predict," "seek," "target," "aim," "plan," "project," "forecast," "should," "would," or variations of such words or by expressions of similar meaning. Such forward-looking statements, including statements regarding anticipated financial and operational results, projections of market opportunity and expectations, the estimated post-transaction enterprise value, the advantages and expected growth of Squirrel Companies, the cash position of Squirrel Companies following the closing of the Business Combination, the ability of Squirrel Companies and HSPO to consummate the proposed Business Combination and the timing of such consummation, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled "Risk Factors" in HSPO's Annual Report on Form 10-K filed with the SEC on April 1, 2024 (the "Form 10-K"), HSPO's final prospectus dated December 22, 2022 filed with the SEC (the "Final Prospectus") related to HSPO's initial public offering, and in other documents filed by HSPO with the SEC from time to time. Important factors that could cause the combined company's actual results or outcomes to differ materially from those discussed in the forward-looking statements include: HSPO's or Squirrel Companies' limited operating history; the ability of HSPO or Squirrel Cayman to identify and integrate acquisitions; general economic and market conditions impacting demand for the services of Squirrel Companies; 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 Nasdaq's listing standards following the consummation of the proposed Business Combination; costs related to the proposed Business Combination; and such other risks and uncertainties as are discussed in the Form 10-K, the Final Prospectus and the proxy statement to be filed relating to the Business Combination. Other factors include the possibility that the proposed Business Combination do not close, including due to the failure to receive required security holder approvals, or the failure of other closing conditions.
Squirrel Companies and HSPO each expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the expectations of Squirrel Companies or HSPO with respect thereto or any change in events, conditions or circumstances on which any statement is based, except as required by law.
Use of data
The data contained herein is derived from various internal and external sources that Squirrel Companies and HSPO believe to be reliable. Although Squirrel Companies and HSPO are not aware of any misstatements regarding the external data presented herein, their estimates involve risks and uncertainties and are subject to change based on various factors, including those described under "Forward-Looking Statements" above. Any data on past performance or modeling contained herein is not an indication as to future performance, and each of Squirrel Companies and HSPO disclaims any obligation, except as required by law, to update or revise the information in this presentation, whether as a result of new information, future events or otherwise.
Contact Information:
Shenzhen Squirrel Enlivened Media Group Co., Ltd
Angxiong Zhao
Chief Executive Officer
Tel: +86075525725072
Website: https://www.songshucm.com/
Horizon Space Acquisition I Corp.
Michael Li
Chief Executive Officer
Tel: (646) 257-5537
Email: mcli@horizonspace.cc
SOURCE: Horizon Space Acquisition I Corp.
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