HCM II Acquisition Corp. Reports Net Loss, Completes Initial Public Offering and Places Funds in Trust Account

HCM II Acquisition Corp., incorporated on April 4, 2024, is classified as a shell company and an emerging growth company. The company has not commenced any operations as of June 30, 2024, and reported a net loss of $52,663 for the period ending June 30, 2024, primarily due to general and administrative costs. The accumulated deficit stood at $(52,663), with total shareholders' deficit at $(27,663).

The company completed its Initial Public Offering (IPO) on August 19, 2024, selling 23,000,000 units at $10.00 per unit, generating gross proceeds of $230,000,000. This included the full exercise of the underwriters' over-allotment option, which added 3,000,000 units. Additionally, HCM II sold 6,850,000 private placement warrants at $1.00 each, raising an additional $6,850,000. The total gross proceeds placed in the Trust Account amounted to $231,150,000, which will be utilized primarily for a future business combination.

The company incurred total transaction costs of $15,396,014 related to the IPO, which included a cash underwriting fee of $4,000,000 and a deferred underwriting fee of $10,720,000. As of June 30, 2024, HCM II had no cash and reported a working capital deficit of $400,018. However, the company believes it has sufficient funds for its working capital needs for at least one year from the date of the financial statements.

As of the reporting date, HCM II had placed $231,150,000 in the Trust Account, invested in U.S. government treasury obligations or compliant money market funds. The company aims to complete a business combination with a target business valued at a minimum of 80% of the net balance in the Trust Account at the time of signing an agreement. The Trust Account funds will not be released until the completion of the initial business combination or under specified conditions.

The company has not issued any preference shares or Class A ordinary shares, with a total authorization of 1,000,000 preference shares and 200,000,000 Class A ordinary shares. As of June 30, 2024, HCM II had no long-term debt or significant liabilities, apart from a monthly payment of $15,000 to the Sponsor for administrative services. The company has also entered into a non-interest bearing loan agreement with the Sponsor for up to $300,000 for IPO expenses, with outstanding borrowings of $153,127 as of the reporting date.