HCM II Acquisition Corp., a blank check company incorporated in the Cayman Islands, reported its financial performance for the period ending December 31, 2024, in its recent 10-K filing. The company generated a net income of approximately $3.4 million, primarily due to interest earned on marketable securities held in its trust account, which amounted to $4.04 million. The total assets of the company stood at approximately $235.2 million, with $231.15 million held in the trust account following its Initial Public Offering (IPO) on August 19, 2024, where it raised $230 million by selling 23 million units at $10 each.
Compared to the previous fiscal period, HCM II Acquisition Corp. has made significant strides, particularly in its capital structure. The company successfully completed its IPO, which included the full exercise of the underwriters' over-allotment option, generating gross proceeds of $230 million. Additionally, it sold 6.85 million private placement warrants for $6.85 million, further bolstering its financial position. The company has not yet commenced any operations or generated revenue from business activities, as it is still in the process of identifying a target for its initial business combination.
Strategically, HCM II Acquisition Corp. has entered into a Business Combination Agreement with Terrestrial Energy Inc., which is expected to close in the fourth quarter of 2025, pending shareholder approval. This merger will allow the company to transition from a blank check entity to an operational business. The company also plans to change its jurisdiction of incorporation from the Cayman Islands to Delaware as part of this process. The agreement has been unanimously approved by both boards of directors, indicating strong support for the transaction.
Operationally, HCM II Acquisition Corp. has maintained a lean structure, with only two executive officers as of March 31, 2025. The company has incurred approximately $634,797 in general and administrative costs since its inception. As of December 31, 2024, it had cash of $668,089 available for working capital needs. The company has until August 19, 2026, to complete its initial business combination, or it will face mandatory liquidation. The management has expressed confidence in its ability to secure a suitable target and complete the merger within the designated timeframe.
Looking ahead, HCM II Acquisition Corp. acknowledges the potential challenges it may face in completing its business combination, including market volatility and economic uncertainties. The company has indicated that it may need to raise additional capital to meet its operational needs and complete the merger. However, it remains optimistic about its prospects, given the strategic partnership with Terrestrial Energy and the financial resources available in its trust account.
About HCM II Acquisition Corp.
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