Metal Sky Star Acquisition Corporation announced private placement of up to 300,000 pre-paid warrants at a price of $10 per warrant for gross proceeds of $3,000,000 on March 31, 2022. The company has entered into a warrants purchase agreement with the investor for the transaction. The transaction will involve participation from M-Star Management Corporation.

Each private placement warrant is exercisable for one share of class A common stock at a price of $11.50 per share. Once the warrants become exercisable, the company may redeem the outstanding warrants for cash. The transaction will close concurrently with closing of public offering.

If the underwriters' over-allotment option is exercised in full the company will issue 330,000 warrants. The private placement warrants are redeemable. The warrants have 30 days lockup period after the completion of the transaction.