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
Portfolio Pulse from Benzinga Newsdesk
HCM Acquisition Corp. (HCMA) has filed a supplement to its proxy statement with the SEC, proposing to extend the deadline for a business combination from January 25, 2024, to February 25, 2024, with options to extend monthly up to April 25, 2024. The Sponsor agreed to increase the Monthly Contribution to the trust account managed by J.P. Morgan Wealth Management, which will now be held in a treasury securities cash management fund expected to earn 4.5% interest per annum. The company's Cayman Islands domicile means share redemptions are not subject to the Excise Tax from the Inflation Reduction Act of 2022. A shareholder meeting is scheduled to vote on the proposal.
January 16, 2024 | 6:46 pm
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HCM Acquisition Corp. proposes extending the deadline for a business combination and has increased the Monthly Contribution to its trust account, which is expected to earn 4.5% interest per annum.
The extension proposal and increased Monthly Contribution may be viewed positively by investors as it provides more time for HCMA to find a suitable business combination and offers a higher return on the trust account. The lack of Excise Tax due to the company's domicile could also be seen as a financial advantage. These factors are likely to have a positive short-term impact on HCMA's stock price.
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