Golden Star Acquisition Corporation (NASDAQ:GODN), a blank check company also known as Golden Star with a market capitalization of $72.5 million, announced that its shareholders have approved a series of proposals related to a significant business combination, as revealed in a recent SEC filing. The extraordinary general meeting, which took place on January 20, 2025, saw the approval of a Business Combination Agreement with Gamehaus Inc. and related transactions.
According to InvestingPro analysis, the company has demonstrated remarkable momentum with a 62.79% return in the past week, though current valuations suggest the stock may be trading above its Fair Value.
The shareholders voted on seven different proposals, all of which were approved. These included the Business Combination Proposal, the Merger Proposal, the Charter Proposal, the Organizational Documents Advisory Proposals, the Equity Incentive Plan Proposal, and the Share Issuance Proposal. Each proposal required a majority vote to pass, with the Business Combination and Merger Proposals also requiring at least two-thirds of the votes.
The approval of the Business Combination Proposal signifies shareholder consent for the agreement with G-Star Management Corporation, Gamehaus Holdings Inc., and other parties involved. The Merger Proposal, which also received affirmative votes, involves the merger of a subsidiary of Gamehaus with and into Golden Star.
Additionally, the Charter Proposal was passed, leading to the adoption of the Amended and Restated Memorandum and Articles of Association of Pubco, the company that will emerge post-merger. Advisory votes were also cast in favor of five governance provisions in the Amended and Restated Memorandum and Articles of Association.
Shareholders also gave the green light to the Equity Incentive Plan Proposal, approving the Pubco 2023 Equity Incentive Plan, and the Share Issuance Proposal, which complies with Nasdaq listing rules by authorizing the issuance of approximately 55.98 million new ordinary shares in the Business Combination.
In conjunction with these approvals, the company disclosed that holders of 2,406,044 ordinary shares exercised their right to redeem their shares for cash, equating to approximately $11.33 per share. This redemption resulted in an aggregate amount of approximately $27.26 million. After these redemptions, Golden Star will have 95,977 ordinary shares outstanding, with around $1.09 million remaining in the company's trust account.
InvestingPro data reveals the company maintains a 'GOOD' overall financial health score of 2.8, despite its current P/E ratio of 43.45 being relatively high. Subscribers to InvestingPro can access 10+ additional investment tips and comprehensive financial metrics to better evaluate this business combination's potential impact.
In other recent news, Golden Star Acquisition Corp has been diligently working to extend its deadline for completing an initial business combination until February 4, 2025. The company's sponsor, G-Star Management Corporation, has deposited the twelfth monthly extension fee into the trust account, indicating a commitment to this goal. This follows a series of similar deposits, each amounting to $50,000.
In addition, Golden Star Acquisition Corp has postponed an extraordinary general meeting to garner more shareholder engagement. The meeting is expected to focus on approving a reduced monthly fee for extending the deadline for an initial business combination. The company has also adjusted the shareholder fee structure to the lesser of $50,000 for all outstanding public shares or $0.02 per outstanding public share.
Golden Star Acquisition Corp has also extended its merger deadline with Gamehaus Inc. until February 4, 2025. This strategic move provides the company additional time to finalize their business combination.
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