HCM Acquisition Corp. Announces Increase In Contribution Amount In Connection With Its Proposed Extension To Extend The Date By Which The Company Must Consummate A Business Combination To February 25, 2024
HCM Acquisition Corp. (NASDAQ: HCMA) (the "Company"), a blank check company incorporated as a Cayman Islands exempted company, today announced that it has filed a supplement ("Supplement") to its definitive proxy statement (the "Proxy Statement") with the US Securities and Exchange Commission (the "SEC") on December 26, 2023, in connection with an extraordinary general meeting in lieu of an annual general meeting of the shareholders ("Meeting") to consider and vote on certain proposals, including a proposal to amend the Company's amended and restated memorandum and articles of association (our "Amended and Restated Memorandum and Articles of Association") to extend the date by which the Company must consummate a business combination (the "Extension") from January 25, 2024 (the "Original Termination Date") to February 25, 2024 (the "Extended Date"), with the option to elect to extend the date to consummate a business combination on a monthly basis for up to two times by an additional month each time after February 25, 2024, without another shareholder vote, upon two days' advance notice prior to the applicable deadline, for a total of up to three months to April 25, 2024, unless the closing of a business combination shall have occurred (the "Additional Extension Date" and such proposal, the "Extension Amendment Proposal").
On January 16, 2024, the Company announced that it has filed a supplement ("Supplement") to the Proxy Statement. The Supplement provides that the Sponsor has agreed to increase the Monthly Contribution to the lesser of (i) $0.03 per Class A Ordinary Share held by public shareholders or (ii) an aggregate of $30,000 for each Public Share that is not redeemed.
The Monthly Contributions will be placed in the Company's trust account with J.P. Morgan Wealth Management. To mitigate the risk that the Company might be deemed to be an investment company for purposes of the Investment Company Act of 1940, as amended, the Company has instructed the trustee of the trust account to liquidate the investments held in the trust account and instead to hold the funds in the trust account in a treasury securities cash management fund, which is currently expected to earn approximately 4.5% interest per annum.
Because the Company is domiciled in the Cayman Islands, any redemption of its ordinary shares would not be subject to the excise tax established by the Inflation Reduction Act of 2022 (the "Excise Tax"). If the Company were to become subject to the Excise Tax in the future, whether in connection with the consummation of a business combination with a U.S. company (including if the Company were to redomicile as a U.S. corporation in connection therewith) or otherwise, whether and to what extent the Company would be subject to the Excise Tax on a redemption of its ordinary shares would depend on a number of factors. If the Company were to become a covered corporation in the future, the per-share redemption amount payable from the Trust Account (including any interest earned on the funds held in the trust account) to the holder of the public shares in connection with a redemption of the Company's shares are not expected to be reduced by any Excise Tax imposed on the Company.
The Meeting will be held in person at 10:00 a.m. Eastern time, at 100 First Stamford Place, Suite 330, Stamford, CT 06902. For your convenience, we will also webcast the Extraordinary Meeting live via the Internet at www.virtualshareholdermeeting.com/HCMA2024SM. The Company encourages its shareholders to vote in favor of the Extension Amendment Proposal and each other proposal described in the Proxy Statement.
The Company's shareholders of record at the close of business on the record date, December 19, 2023, are entitled to vote the ordinary shares owned by them at the Meeting. Every shareholder's vote is very important, regardless of the number of shares held, and the Company requests the prompt submission of votes.
Shareholders may vote online at www.virtualshareholdermeeting.com/HCMA2024SM by following the instructions on their provided proxy card. If the shares are held in an account at a brokerage firm or bank, shareholders must instruct their respective broker or bank how to vote the shares, or the shareholders may cast their vote online at www.proxyvote.com by obtaining a proxy from the respective brokerage firm or bank.