Horizon Space Acquisition I Corp. Material Event - What Happened

Hey there! Let's break down what's going on with Horizon Space Acquisition I Corp. in a way that makes sense, without all the confusing finance talk. Think of this as me explaining the news to you over a cup of coffee.

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1. What happened? (The actual event, in plain English)

Okay, so Horizon Space Acquisition I Corp. (let's just call them "Horizon Space" for short) just announced they are voluntarily delisting their shares, units, warrants, and rights from the Nasdaq stock exchange. This means their securities will no longer trade on Nasdaq.

Instead, they will start trading on the over-the-counter (OTC) markets, which are less regulated and typically have lower trading volumes than major exchanges like Nasdaq.

Basically, they were planning to find a private company to merge with and bring it public, but they couldn't make that happen within Nasdaq's rules, and their previous merger attempt fell through. Now, their plan is to continue searching for a merger partner, but from the OTC market.

2. When did it happen?

Horizon Space notified Nasdaq of their decision on December 3, 2025. Their securities will be suspended from trading on Nasdaq before the market opens on December 12, 2025, and will begin trading on the OTC markets on that same day.

It's also important to know that their previous merger agreement with a company called Squirrel Enlivened Technology Co., Ltd. was mutually canceled on October 3, 2025.

3. Why did it happen? (The backstory)

You know how some companies are called "blank check" companies (or SPACs)? Horizon Space is one of those. Their whole purpose was to raise money from investors and then find a private company to merge with, essentially bringing that private company onto the stock market without going through a traditional IPO (Initial Public Offering).

They had a deadline to complete a merger within 36 months of their IPO, which was December 21, 2025. Even though they had extended their internal deadline to April 27, 2026, Nasdaq's rules required them to complete a deal by the earlier December 21st date.

The reason this delisting is happening is primarily because:

• They couldn't find and complete a merger deal in time. Their previous attempt with Squirrel Enlivened Technology Co., Ltd. was called off in October. While they are still looking for a new partner, they don't expect to find one and complete the merger by Nasdaq's December 21st deadline.
• They no longer meet Nasdaq's listing requirements. After a lot of investors pulled their money out (called "redemptions") in October, the company's financial standing changed significantly. They now have:
  • Less than the required $35 million market value for all their listed securities.
  • Fewer than 300 public shareholders.
  • Fewer than 500,000 publicly held shares.
  • Less than $1 million market value of publicly held shares.

Basically, the company's Board of Directors looked at all these factors and decided it was in the company's best interest to voluntarily move off Nasdaq rather than wait to be forced off.

4. Why does this matter? (The "So What?")

This is a pretty big deal for Horizon Space because their entire reason for existing was to complete a merger like the one that just got called off, and to do so on a major exchange like Nasdaq.

• Delisting is a downgrade: Moving from Nasdaq to the OTC markets is generally seen as a step down. It often means less visibility for the company, potentially fewer investors, and can make it harder for existing investors to buy or sell shares.
• SPAC mission unfulfilled (on Nasdaq): They failed to complete their core mission within the required timeframe for a Nasdaq listing. It's like they had a wedding planned, the bride/groom backed out, and now they've also lost their fancy wedding venue.
• Financial health concerns: The fact that they fell below so many Nasdaq listing requirements (like market value and number of public shares) shows that a significant amount of investor confidence and capital has left the company.

This affects the company's future plans and how investors see its potential. It makes people wonder if they'll ever find a suitable partner or if they can succeed from the less prominent OTC market.

5. Who is affected?

• Investors (that's you, potentially!): If you own shares, units, warrants, or rights in Horizon Space, they will now trade on the OTC markets. This can mean less trading activity, wider gaps between buying and selling prices, and potentially lower prices overall. It might also be harder to find information about the company.
• The company itself (Horizon Space): Their management team now has to scramble to find a new target company while operating on a less prestigious market. It's a lot of work and pressure, and they have less capital to work with after the redemptions.
• Future merger partners: Any company considering merging with Horizon Space will now be going public on the OTC market, which might be less attractive than Nasdaq.

6. What happens next?

• Trading on OTC: Starting December 12, 2025, Horizon Space's securities will trade on the OTCQB (for shares, rights, and warrants) and OTCID (for units). They will get new ticker symbols.
• Continued search for a merger: The company's management and sponsor are still committed to finding a business combination. However, they now have until their extended deadline of April 27, 2026, to complete a deal.
• Potential liquidation: If they don't find a suitable merger partner and complete a deal by April 27, 2026, they will likely have to liquidate, meaning they would return any remaining funds to investors and close down.

We'll be watching to see what their next move is and if they announce any new plans.

7. What should investors/traders know? (Practical takeaways)

• Expect significant changes: Trading on the OTC market is different from Nasdaq. Research how OTC markets work if you're unfamiliar.
• Increased risk: The company is in a very precarious position. The failure to secure a Nasdaq-compliant deal and the delisting significantly increase the risk of the company eventually liquidating.
• Do your homework: If you're thinking about buying or selling, try to understand why this happened and what it means for the company's future. This isn't just a temporary setback; it's a fundamental change in their operating environment.
• Understand the "blank check" game: Remember, these SPACs are all about finding a good company to merge with. If they can't, or if the deals fall through, it can be very risky, as this situation clearly shows.
• This isn't financial advice! This is just me explaining the situation. Always do your own research and consider talking to a financial advisor before making any investment decisions.

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Hopefully, that clears things up a bit! Keep an eye on the news for Horizon Space – there's likely more to come.