Alpha Star Acquisition Corp Annual Report - How They Did This Year

Hey there, fellow investor! Let's break down Alpha Star Acquisition Corp's past year. This company is unique, so understanding its journey is key.

What is Alpha Star Acquisition Corp?

First, Alpha Star isn't a regular company selling products or services. It's a "blank check company" or SPAC (Special Purpose Acquisition Company). Here's how it works: investors raised money through an IPO. Their goal was to find a promising private company, buy it, and then help it go public. It's a shortcut for a private company to list on the stock market.

Alpha Star went public on December 15, 2021. It sold units for $10.00 each. Each unit included one regular share. It also had a right to receive one-tenth of a share when a deal was completed. Finally, each unit contained a warrant, giving the holder the option to buy one share for $11.50. The company initially raised $115 million from public investors through the IPO. Its sponsor added $3.3 million by selling private placement warrants. This brought the total money raised to $118.3 million. Alpha Star put about $115.0 million into a special trust account. This money stays there until they find a company to merge with or a deadline passes. It earns interest for public shareholders.

The Search for a Partner and Shareholder Redemptions

Finding the right merger partner takes time. Alpha Star has been actively searching. Over the past year and a half, they asked shareholders for more time to complete a deal. Each time, shareholders could pull their money out. This is called "redemption." Here's how it happened:

• July 2023: Shareholders voted to extend the deadline to March 2024. Many investors, 2.4 million public shares, redeemed their shares. They took out about $25.25 million from the trust account. The redemption price was about $10.45 per share.
• January 2024: Another vote extended the deadline to September 2024. Even more shareholders, 3.3 million public shares, redeemed their investment. They withdrew about $35.17 million. The redemption price was about $10.55 per share. The company also made changes. They could now look at targets in China. They also removed a rule preventing redemptions if it made the stock a "penny stock."
• July 2024: The deadline was pushed again to December 2024. A massive 4.8 million public shares were redeemed this time. This amounted to about $51.12 million. The redemption price was about $10.65 per share. This left much less cash in the trust account for a potential merger.
• December 2024: Shareholders agreed to extend the deadline to June 2025. Another 880,335 public shares were redeemed. This withdrew about $9.46 million. The redemption price was about $10.75 per share.
• June 2025: The deadline was extended one last time to December 2025. No public shares were redeemed this time.

These redemptions mean many original public investors chose to get their money back. They did not wait for a deal. In total, about 11.38 million public shares were redeemed across these votes. This withdrew a cumulative $121.0 million from the trust account.

The Big News: They Found a Match!

The biggest news is this: Alpha Star Acquisition Corp found a company to merge with! It's OU XDATA GROUP! They made this agreement on October 13, 2025. OU XDATA GROUP is a top provider of AI-powered data analytics. They offer cloud-based solutions for businesses. These businesses are in finance, healthcare, and retail. This is a huge step. Alpha Star is no longer just a "blank check" company. It now plans to acquire a specific business. The proposed deal values OU XDATA GROUP at about $300 million. Under the Merger Agreement, OU XDATA GROUP shareholders will get new Alpha Star shares. They will exchange these for their current OU XDATA GROUP shares.

What This Means for Investors

• No Longer a "Blank Check": The uncertainty of finding a target is gone. Now, the focus shifts to OU XDATA GROUP's business. We also need to understand the merger terms.
• Reduced Cash for the Deal: Many redemptions greatly reduced Alpha Star's cash for the merger. The trust account initially held about $115.0 million. After $121.0 million in redemptions and earned interest, the balance was about $1.3 million on December 31, 2025. This very low cash balance means the combined company will start with minimal cash. This could severely impact OU XDATA GROUP's growth plans. It might also limit their financial flexibility. They may need to find other funding.
• New Company Profile: Once the merger with OU XDATA GROUP finishes, Alpha Star will become OU XDATA GROUP. Or it will become a new entity. Your investment will then be in that operating business. It won't be in a shell company looking for a deal.
• Current Share Count: As of March 19, 2026, about 3.2 million shares were available. This total includes 120,000 public shares. These are the remaining shares held by regular investors after many redemptions. It also includes 3,080,000 founder shares held by the SPAC's sponsor. This big imbalance means very few shares trade publicly. The sponsor holds most of the pre-merger company. The market value of shares held by regular investors was low. It was $288,966 on June 30, 2025. This was based on a $12.75 share price. It shows how few public shares remained.

In summary: Alpha Star successfully found a target company. This happened despite many shareholders redeeming their investments. The next step is to finalize the merger with OU XDATA GROUP. This will transform Alpha Star from a shell company into an operating business. It will focus on AI-powered data analytics. Investors must now evaluate OU XDATA GROUP's business future. They also need to consider the very low cash balance for the combined company. This will help them decide if it's a good long-term investment.