STAMFORD, Conn., Jan. 16, 2024 (GLOBE NEWSWIRE) -- 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 ...