Benzinga | May 24, 2021 04:36PM EDT

East Stone Acquisition Corporation Confirms Funding To Extend Period To Consummate Initial Acquisition

East Stone Acquisition Corporation (NASDAQ:ESSCU), a publicly traded special purpose acquisition company ("East Stone"), announced today that an aggregate of $1,380,000 (the "Extension Payment") has been deposited into East Stone's trust account for its public shareholders, representing $0.10 per public share, which enables East Stone to extend the period of time it has to consummate its initial business combination by three months to August 24, 2021 (the "Extension"). The Extension is the first of up to two three-month extensions permitted under East Stone's governing documents and provides East Stone with additional time to complete its proposed business combination with JHD Holdings (Cayman) Limited ("JHD") pursuant to the business combination agreement entered into on February 18, 2021 (the "Business Combination Agreement").

In accordance with the Business Combination Agreement, JHD, on behalf of Double Venture Holdings Limited, East Stone's sponsor, loaned the Extension Payment to East Stone. East Stone issued a promissory note to JHD in the amount of the Extension Payment. The loan under the promissory note is non-interest bearing and will be repaid upon the consummation of the proposed business combination. The business combination is expected to be completed by the end of the third quarter of 2021, subject to, among other things, the approval of the transaction by East Stone's shareholders, satisfaction of the conditions stated in the definitive business combination agreement and other customary closing conditions, including that the U.S. Securities and Exchange Commission completes its review of the proxy statement/prospectus relating to the transaction, the receipt of certain regulatory approvals, and the approval by The Nasdaq Stock Market to list the securities of the combined company.