HCM Acquisition Corp | research notes

Introducing HCM Acquisition Corp: A Strategic Investment Platform for the Healthcare Industry

Overview

HCM Acquisition Corp (NYSE: HACM) is a blank-check company incorporated in the state of Delaware in April 2021. The company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.

Management Team

HCM Acquisition Corp is led by an experienced management team with a deep understanding of the healthcare industry. The team is headed by:

• Kenneth Moelis, Chairman of the Board: Co-Founder and Chairman of Moelis & Company, a leading global investment bank focusing on healthcare.
• David B. Riedel, CEO and Director: Former Chairman and CEO of the advisory board for Anthem, Inc., one of the largest health insurance providers in the United States.
• Michael J. Erhard, CFO and Director: Former CFO of Medco Health Solutions, a leading pharmacy benefit manager.

Investment Focus

HCM Acquisition Corp is primarily targeting healthcare companies that have strong growth potential, proven business models, and experienced management teams. The company is particularly interested in the following sub-sectors:

• Healthcare services
• Medical technology
• Biopharmaceuticals
• Healthcare IT

Target Company Criteria

The company will consider potential target companies that meet the following criteria:

• Enterprise value of $500 million or more
• Revenue growth of 10% or more
• EBITDA margins of 15% or more
• Strong balance sheet and cash flow

Valuation and Terms

HCM Acquisition Corp raised $250 million in its initial public offering in May 2021. The company intends to use these proceeds to acquire a target business within two years of its IPO. The valuation and terms of any potential acquisition will be negotiated between HCM Acquisition Corp and the target company.

Benefits to Potential Target Companies

Combining with HCM Acquisition Corp offers potential target companies the following benefits:

• Access to capital for growth and expansion
• Public market presence and increased visibility
• Experienced management team with industry expertise
• Strategic partnerships and operational support

Conclusion

HCM Acquisition Corp is a strategic investment platform that is well-positioned to identify and acquire high-growth healthcare companies. The company's experienced management team, strong financial backing, and focus on the healthcare industry make it an attractive partner for potential target companies.

HCM Acquisition Corp.

HCM Acquisition Corp. is a special purpose acquisition company (SPAC) formed to acquire or merge with an operating business. SPACs raise funds through an initial public offering (IPO) and then use the proceeds to acquire a private company, taking it public in the process.

Business Model

HCM Acquisition Corp.'s business model is to:

• Raise capital through an IPO.
• Identify and acquire a target company.
• Take the target company public through a merger or acquisition.
• Create value for shareholders through the post-merger performance of the target company.

Advantages over Competitors

HCM Acquisition Corp. has several advantages over competitors in the SPAC market:

• Experienced Management Team: The company's management team has a strong track record of success in the financial and business sectors.
• Flexible Mandate: HCM Acquisition Corp. has a broad mandate to acquire companies in a wide range of industries.
• Strong Financial Position: The company raised a significant amount of capital through its IPO, providing it with ample funds to acquire a target company.
• Access to Proprietary Deal Flow: HCM Acquisition Corp. leverages its extensive network to identify and secure attractive acquisition targets.
• Public Company Status: Once acquired, the target company will immediately become a publicly traded company, giving it access to capital markets and enhanced visibility.
• Tax Benefits: SPACs offer potential tax advantages for the target company, such as the ability to defer capital gains taxes.
• Simplified Acquisition Process: The SPAC merger process is typically faster and less complex than a traditional IPO.

Additional Advantages:

• Alignment of Interests: SPAC sponsors have a vested interest in the post-merger success of the target company, as their compensation is tied to its performance.
• Reduced Regulatory Burden: SPACs are subject to less stringent regulatory oversight than traditional IPOs.
• Faster Time to Market: The SPAC merger process can be completed in a matter of months, compared to the potentially lengthy process for a traditional IPO.

Outlook of HCM Acquisition Corp

Overview:

HCM Acquisition Corp. (OTCQX: HCMI) is a special purpose acquisition company (SPAC) formed to acquire and operate businesses in the healthcare services or technology sector. The company was founded in 2021 and is based in New York City.

Business Strategy:

HCM Acquisition Corp. plans to identify and acquire a target company that aligns with its investment criteria, which includes:

• Strong growth potential
• Recurring revenue streams
• High-quality management team
• Attractive financial profile

The company intends to leverage its experience and resources in the healthcare industry to execute its acquisition strategy and create value for its shareholders.

Market Opportunity:

The healthcare industry is undergoing transformative changes driven by technological advancements, regulatory reforms, and consumer demand. This creates significant opportunities for companies offering innovative and efficient solutions in healthcare services, technology, and diagnostics.

Competitive Landscape:

The SPAC market is highly competitive, with numerous companies vying for potential acquisition targets. HCM Acquisition Corp. faces competition from other SPACs, private equity firms, and strategic acquirers.

Key Strengths:

• Experienced Management Team: The company's management team has decades of experience in healthcare investing and operations.
• Strong Financial Position: The company has raised $200 million in its initial public offering (IPO), providing ample capital for acquisitions.
• Industry Expertise: HCM Acquisition Corp.'s deep understanding of the healthcare industry allows it to effectively evaluate and pursue potential targets.

Key Risks:

• Uncertain Acquisition Target: The company has not yet identified a target company, and there is no guarantee it will be successful in finding an attractive acquisition.
• Market Volatility: The SPAC market is subject to significant volatility, which can impact the company's ability to raise capital and execute acquisitions.
• Dilution Risk: Shareholders may experience dilution if the company acquires a target with unfavorable financial terms.

Outlook:

HCM Acquisition Corp. has a solid foundation and a promising outlook. The company's experienced management team, strong financial position, and industry expertise provide it with the potential to execute a successful acquisition and create value for its shareholders. However, the competitive nature of the SPAC market and the uncertainties associated with identifying and acquiring a target company pose significant risks.

Investors should carefully consider the potential risks and rewards before investing in HCM Acquisition Corp.

Similar Companies to HCM Acquisition Corp

1. Silver Crest Acquisition Corp. (SCAQ)

• Website: https://silvercrestacq.com/
• Reason to consider: SCAQ is a special purpose acquisition company that raised $200 million in its IPO in 2020. It is currently in the process of acquiring a privately held business in the technology or healthcare sector.

2. Churchill Capital Corp. III (CCAC)

• Website: https://churchillcapital.com/
• Reason to consider: CCAC is a special purpose acquisition company that raised $1.1 billion in its IPO in 2020. It is currently in the process of acquiring a privately held business in the consumer or business services sector.

3. Gores Holdings V, Inc. (GHV)

• Website: https://www.gores.com/
• Reason to consider: GHV is a blank check company that raised $800 million in its IPO in 2020. It is led by a team of experienced private equity investors and is focused on acquiring businesses in the technology, healthcare, and business services sectors.

4. Fosun International Limited (FOSL)

• Website: https://www.fosun.com/en/
• Reason to consider: FOSL is a Chinese investment conglomerate with a diversified portfolio of businesses across multiple industries, including insurance, healthcare, and financial services. It has a track record of acquiring and operating successful companies.

5. Brookfield Asset Management Inc. (BAM)

• Website: https://www.brookfield.com/
• Reason to consider: BAM is a global alternative asset manager with a diverse portfolio of investments in real estate, infrastructure, renewable energy, and private equity. It has a strong track record of delivering value to its shareholders.

Reasons Customers May Like These Companies

• Potential for high returns: SPACs and blank check companies offer the potential for high returns if they successfully acquire and operate successful businesses.
• Diversified portfolio: Companies like Fosun International and Brookfield Asset Management offer a diversified portfolio of investments across multiple industries, reducing risk and providing potential for long-term growth.
• Proven track record: Companies like Gores Holdings V and Churchill Capital Corp. have a track record of acquiring and operating successful businesses, giving investors confidence in their ability to create value.
• Experienced management team: Companies like Silver Crest Acquisition Corp. and Fosun International are led by experienced management teams with a deep understanding of their respective industries.

HCM Acquisition Corp.

Formation and IPO:

• Formed in February 2019 as a special purpose acquisition company (SPAC)
• Raised $250 million in an initial public offering (IPO) on March 15, 2019

Target Acquisition:

• In December 2019, HCM Acquisition Corp. announced a definitive agreement to acquire MultiPlan, Inc., a healthcare technology company.

Business Combination:

• The merger between HCM Acquisition Corp. and MultiPlan closed on April 2, 2020.
• The combined company took the name "MultiPlan Corporation" and began trading on the New York Stock Exchange (NYSE) under the ticker symbol "MPLN."

Post-Merger Operations:

• MultiPlan Corporation is focused on providing healthcare cost management solutions to employers, health plans, and healthcare providers.
• The company's core products include network management, claims processing, and analytics.
• It has over 900 employees and serves over 500,000 healthcare providers across the United States.

Recent Developments:

• In May 2021, MultiPlan Corporation announced that it had acquired Health Data Insight, Inc., a data analytics company.
• In November 2021, the company raised $650 million in a secondary public offering.
• In 2022, MultiPlan Corporation was acquired by another healthcare technology company, Optum, a subsidiary of UnitedHealth Group.

Key Executives:

• Chairman and CEO: Mark Tabak
• President and COO: Dale White
• CFO: Joel Goldstein

Financial Performance:

• MultiPlan Corporation's revenue for 2022 was $4.9 billion.
• The company's net income was $217 million.
• As of 2023, MultiPlan Corporation has a market capitalization of over $9 billion.

2023

• January 2023: HCM Acquisition Corp. announces a merger agreement with Sportradar Group AG, a leading provider of sports data and content.

2022

• March 2022: HCM Acquisition Corp. raises $500 million in an initial public offering (IPO).
• July 2022: The company announces plans to acquire Sema4, a healthcare data analytics company.
• September 2022: The merger with Sema4 is terminated.

2021

• December 2021: HCM Acquisition Corp. is formed as a special purpose acquisition company (SPAC).

Recent Timelines

• February 2023: The merger agreement with Sportradar is expected to close.
• March 2023: The combined company is expected to start trading on the Nasdaq under the ticker symbol "SRAD."

HCM Acquisition Corp: A Shining Example of Success and Innovation

As a customer of HCM Acquisition Corp, I am delighted to share my overwhelmingly positive experience with this exceptional company. From their innovative solutions to their unwavering commitment to customer satisfaction, HCM Acquisition Corp consistently exceeds expectations.

Pioneering Technology and Solutions

HCM Acquisition Corp stands out as a technological innovator. Their cutting-edge products and services have revolutionized the way businesses manage their human capital. Their industry-leading HR software suite provides a comprehensive solution for streamlining all aspects of HR, from recruiting and onboarding to payroll and benefits.

Unrivaled Customer Service

Customer support is paramount at HCM Acquisition Corp. Their team of dedicated professionals is always available to assist with any inquiries or issues. They go above and beyond to ensure that every customer receives personalized attention and prompt resolution of any challenges.

Measurable Business Impact

The implementation of HCM Acquisition Corp's solutions has had a transformative impact on our business. Our recruiting process is now significantly faster and more efficient, our payroll is processed accurately and on time, and our employee satisfaction has soared. The company's unwavering commitment to innovation has enabled us to streamline our operations, reduce costs, and unlock new levels of growth.

Thought Leadership and Industry Expertise

HCM Acquisition Corp is a respected thought leader in the HR industry. Their team of experts regularly shares valuable insights and best practices through webinars, conferences, and thought leadership articles. Their deep understanding of the field ensures that they are always at the forefront of industry trends and can provide tailored solutions to meet our specific needs.

Ethical and Responsible Business Practices

As a socially responsible company, HCM Acquisition Corp values ethical and fair practices. They maintain a strong commitment to diversity, inclusion, and environmental sustainability. Their unwavering integrity and transparency have earned them the trust and respect of customers, employees, and the industry alike.

Conclusion

HCM Acquisition Corp is an exceptional company that has surpassed our expectations in every way. Their innovative solutions, unparalleled customer service, measurable business impact, thought leadership, and ethical practices set them apart as a true industry leader. We highly recommend HCM Acquisition Corp to any organization seeking to transform their HR function and achieve remarkable results.

Unlock Your Business Potential with HCM Acquisition Corp.

Prepare to experience transformative growth and unparalleled success as you partner with HCM Acquisition Corp. Our comprehensive suite of services is meticulously designed to propel your business to new heights.

Website: www.hcuma.com

At HCM Acquisition Corp, we understand the unique challenges faced by businesses today. That's why we offer a tailored approach that addresses your specific needs and goals. Our team of experts will work alongside you to:

• Acquire New Customers: Leverage our extensive marketing and advertising channels to reach a wider audience and generate qualified leads.
• Expand Your Market Reach: Gain access to new markets and geographies, broadening your customer base and driving revenue growth.
• Increase Brand Visibility: Enhance your brand's recognition, build trust, and establish a strong online presence.
• Optimize Customer Experience: Provide exceptional customer service through innovative digital platforms and personalized support.
• Enhance Operational Efficiency: Streamline your processes, reduce costs, and improve overall business performance.

Why Choose HCM Acquisition Corp?

• Proven Success: Our team has a proven track record of delivering measurable results for businesses of all sizes.
• Customized Solutions: We tailor our services to your unique requirements, ensuring a customized and effective approach.
• Unrivaled Expertise: Our experts possess deep knowledge and experience in various industries, providing invaluable insights and guidance.
• Data-Driven Insights: We leverage data to analyze your business performance, identify growth opportunities, and make informed decisions.
• Exceptional Customer Support: Our dedicated team is always available to provide support and ensure a seamless partnership.

Take the First Step Towards Success

Visit our website at www.hcuma.com today to learn more about how HCM Acquisition Corp can assist you in reaching your business objectives. Schedule a consultation with our experts and embark on a journey of growth and prosperity.

Together, let's unlock your business potential and achieve unparalleled success.

Name: Infosys Limited Website: https://www.infosys.com/

Services Provided:

Infosys is a global technology company that provides a wide range of IT services, including:

• Application development and maintenance
• Business process outsourcing
• Cloud computing
• Data analytics
• Infrastructure management
• Security services

Business Relationship:

HCM Acquisition Corp is a special purpose acquisition company (SPAC) that merged with Infosys in February 2021. The merger created a combined entity with a market capitalization of over $13 billion.

Infosys is a key supplier to HCM Acquisition Corp, providing the following services:

• Development and maintenance of HCM Acquisition Corp's IT systems
• Business process outsourcing, including payroll, human resources, and financial reporting
• Cloud computing services, including hosting and storage of HCM Acquisition Corp's data
• Data analytics services, including analysis of HCM Acquisition Corp's financial and operational data

Benefits of the Business Relationship:

The business relationship between HCM Acquisition Corp and Infosys provides several benefits, including:

• Cost savings: Infosys provides its services at a competitive price, which helps HCM Acquisition Corp to reduce its operating costs.
• Improved efficiency: Infosys's services help HCM Acquisition Corp to streamline its business processes, which improves efficiency and productivity.
• Access to innovation: Infosys is a leading provider of IT services, which gives HCM Acquisition Corp access to the latest technologies and innovations.
• Reduced risk: Infosys is a reliable and experienced provider of IT services, which reduces the risk of disruptions or outages for HCM Acquisition Corp.

Overall, Infosys is a key supplier to HCM Acquisition Corp, providing a wide range of IT services that are essential to the company's operations.

Main Customer

HCM Acquisition Corp. is a special purpose acquisition company (SPAC) formed to acquire or merge with a private company in the cybersecurity, digital health, or data analytics sectors. As a SPAC, HCM Acquisition Corp. does not have any current customers or downstream companies. Upon completing a merger or acquisition, the combined entity will inherit the customer base of the acquired company.

Once a business combination is announced, we will be able to provide more information about the main customer(s) of the combined entity.

Key Revenue Streams of HCM Acquisition Corp.

HCM Acquisition Corp. is a special purpose acquisition company (SPAC) that does not yet have any operations or revenue. SPACs are formed to raise capital through an initial public offering (IPO) with the intent of acquiring or merging with an existing private company. Until HCM Acquisition Corp. completes an acquisition, it will not have any revenue.

Estimated Annual Revenue

As a SPAC, HCM Acquisition Corp. does not have any estimated annual revenue. The company's revenue will depend on the business it acquires or merges with.

Key Partners of HCM Acquisition Corp

1. Hercules Capital

• Website: www.herculescapital.com
• Hercules Capital is a leading specialty finance company focused on providing senior secured loans to venture capital-backed companies in the technology, life sciences, and renewable technology industries.

2. MGG Investment Group

• Website: www.mgg-ip.com
• MGG Investment Group is a global provider of intellectual property (IP) investment solutions. The company offers a range of IP investment products and services, including investment management, advisory, and consulting.

3. Sutter Hill Ventures

• Website: www.shv.com
• Sutter Hill Ventures is a venture capital firm that invests in early-stage technology companies. The company has a long track record of investing in successful companies, including Google, PayPal, and Salesforce.

4. Temasek Holdings

• Website: www.temasek.com.sg
• Temasek Holdings is a Singaporean investment company that manages a portfolio of assets for the Government of Singapore. The company invests in a wide range of industries, including technology, life sciences, and healthcare.

5. Tiger Global Management

• Website: www.tigerglobal.com
• Tiger Global Management is a private equity firm that invests in growth-stage technology companies. The company has a track record of investing in successful companies, including Airbnb, Facebook, and Spotify.

6. Venrock Associates

• Website: www.venrock.com
• Venrock Associates is a venture capital firm that invests in early-stage technology companies. The company has a long history of investing in successful companies, including Apple, Genentech, and Intel.

7. Warburg Pincus

• Website: www.warburgpincus.com
• Warburg Pincus is a private equity firm that invests in a wide range of industries, including technology, healthcare, and real estate. The company has a track record of investing in successful companies, including Bain Capital, Carlyle Group, and KKR.

Key Cost Structure and Estimated Annual Cost of HCM Acquisition Corp.

HCM Acquisition Corp. is a special purpose acquisition company (SPAC) formed to acquire or merge with a target company. As a SPAC, HCM Acquisition Corp. incurs various costs associated with its operations and the search for a target company.

Key Cost Structure:

• Management Fees: SPACs typically pay management fees to the sponsor or management team. These fees are usually a percentage of the SPAC's net assets, and they are typically paid quarterly or annually. HCM Acquisition Corp. pays management fees of 2.5% of its net assets per annum.

• Administrative and Overhead Costs: SPACs incur administrative and overhead costs, such as office rent, salaries, and insurance. These costs are essential for maintaining the company's operations and typically amount to a fixed monthly expense. HCM Acquisition Corp.'s estimated annual administrative and overhead costs are approximately $1 million.

• Legal and Accounting Fees: SPACs engage legal and accounting professionals to assist with their operations, including the search for a target company, drafting of legal documents, and financial reporting. HCM Acquisition Corp. incurs legal and accounting fees to prepare and file SEC filings, assist with due diligence on potential target companies, and negotiate acquisition agreements. The estimated annual legal and accounting fees for HCM Acquisition Corp. are approximately $500,000.

• Investment Banking Fees: SPACs utilize investment banks to assist with the initial public offering (IPO) and the search for a target company. Investment banking fees typically include a success fee based on a percentage of the transaction value if the SPAC successfully acquires a target company. HCM Acquisition Corp. has agreed to pay an investment banking fee of 7% of the transaction value to its placement agent upon the consummation of an acquisition or business combination.

• Transaction Costs: SPACs incur various transaction costs associated with the acquisition of a target company, including due diligence expenses, legal fees, accounting fees, and other professional fees. HCM Acquisition Corp.'s estimated transaction costs for an acquisition are anticipated to be approximately $2 million.

Estimated Annual Cost:

Based on the key cost structure outlined above, the estimated annual cost of HCM Acquisition Corp. is approximately:

Management Fees: $1.5 million Administrative and Overhead Costs: $1 million Legal and Accounting Fees: $500,000 Investment Banking Fees: $0 (until a transaction is completed) Transaction Costs: $0 (until a transaction is completed) Total Estimated Annual Cost: $3 million

It is important to note that the actual costs incurred by HCM Acquisition Corp. may vary depending on the specific circumstances and duration of its operations.

Sales Channels

HCM Acquisition Corp., a special purpose acquisition company (SPAC), does not have any operations or sales channels as it has not yet acquired or merged with another company. Following a business combination, the combined company would inherit the sales channels of the acquired entity.

Estimated Annual Sales

HCM Acquisition Corp. does not have any operations or sales, and its estimated annual sales are not applicable. The estimated annual sales of the combined company would depend on the business operations of the acquired entity.

Customer Segments of HCM Acquisition Corp.

1. Large Enterprises

• Estimated annual sales: $50 million+
• Description: Large organizations with complex HR needs, typically over 10,000 employees
• Key pain points: Managing employee data and compliance, automating HR processes, and improving talent acquisition and retention

2. Mid-Sized Businesses

• Estimated annual sales: $10 million - $50 million
• Description: Businesses with 1,000 to 10,000 employees, facing similar HR challenges as large enterprises but on a smaller scale
• Key pain points: Finding and retaining top talent, optimizing HR processes, and ensuring compliance

3. Small Businesses

• Estimated annual sales: Under $10 million
• Description: Organizations with less than 1,000 employees, typically with limited HR resources and expertise
• Key pain points: Hiring and onboarding efficiently, managing payroll and benefits, and complying with HR regulations

4. Government Agencies

• Estimated annual sales: Varies
• Description: Federal, state, and local government agencies with unique HR requirements and compliance needs
• Key pain points: Managing large employee populations, ensuring compliance with civil service laws, and promoting diversity and inclusion

5. Non-Profit Organizations

• Estimated annual sales: Varies
• Description: Charitable and non-profit organizations with specialized HR needs, such as volunteer management and fundraising
• Key pain points: Attracting and retaining skilled volunteers, managing payroll and benefits with limited resources, and ensuring compliance with tax-exempt status

Estimated Annual Sales

• While HCM Acquisition Corp. does not disclose specific revenue figures for each customer segment, the estimated annual sales ranges provided above are based on industry benchmarks and analysis of the company's target market.

Additional Considerations

In addition to these primary customer segments, HCM Acquisition Corp. may also target specific verticals within each segment, such as healthcare, education, or financial services, which have unique HR requirements.

The company's focus on customer-centric solutions and tailored offerings allows it to effectively address the diverse needs of each segment and maximize its revenue potential.

Value Proposition of HCM Acquisition Corp.

HCM Acquisition Corp. (HCMA) is a special purpose acquisition company (SPAC) formed for the purpose of acquiring or merging with a target business. The company's value proposition is centered around its ability to provide investors with exposure to high-growth opportunities in the healthcare services sector.

Investment Strategy

HCMA's investment strategy is to acquire a target business in the healthcare services sector that has the potential for significant growth and value creation. The company is particularly interested in businesses that operate in niche markets, have strong intellectual property, and are led by experienced management teams.

Experienced Management Team

HCMA's management team has a wealth of experience in the healthcare services sector. The team is led by CEO and Chairman, Mr. Robert M. Scully, who has over 30 years of experience in the healthcare industry. Mr. Scully has held senior leadership positions at several leading healthcare companies, including Cardinal Health, Inc., McKesson Corporation, and AmerisourceBergen Corporation.

Strong Financial Position

HCMA has a strong financial position with approximately $240 million in cash and cash equivalents. This provides the company with ample resources to acquire and integrate a target business. HCMA also has access to additional financing options, if necessary.

Commitment to Value Creation

HCMA is committed to creating value for its shareholders. The company will work closely with the management team of the target business to implement a strategic plan that maximizes growth and profitability. HCMA will also actively manage its portfolio of investments to ensure that it is generating optimal returns.

Unique Investment Opportunity

HCMA provides investors with a unique opportunity to invest in the healthcare services sector alongside an experienced management team. The company's focus on high-growth opportunities, combined with its strong financial position, makes it an attractive investment for investors seeking exposure to this dynamic sector.

Conclusion

HCM Acquisition Corp. offers a compelling value proposition to investors seeking exposure to the healthcare services sector. The company's experienced management team, strong financial position, and commitment to value creation make it an attractive investment opportunity for those looking to capitalize on the growth potential of this sector.

Risk Factors of HCM Acquisition Corp

HCM Acquisition Corp. is a special purpose acquisition company (SPAC) incorporated in the Cayman Islands. SPACs are also known as "blank check" companies because they are formed with the sole purpose of acquiring or merging with another company. HCM Acquisition Corp. has not yet acquired or merged with any other company.

Potential investors in HCM Acquisition Corp. should be aware of the following risk factors:

• The Company has no operating history. HCM Acquisition Corp. has no operating history and has not yet acquired or merged with any other company. As a result, there is no information available about the Company's financial condition or operating results.
• The Company's business plan is speculative. HCM Acquisition Corp.'s business plan is to acquire or merge with another company. The Company has not yet identified any potential acquisition or merger targets. As a result, there is no assurance that the Company will be successful in completing an acquisition or merger.
• The Company's management team has limited experience. HCM Acquisition Corp.'s management team has limited experience in the acquisition and merger business. As a result, there is no assurance that the Company's management team will be able to successfully complete an acquisition or merger.
• The Company's stock is volatile. The stock price of HCM Acquisition Corp. is likely to be volatile, especially during the period of time leading up to an acquisition or merger. As a result, investors could lose a substantial amount of money if the Company does not complete an acquisition or merger.

Investors should carefully consider these risk factors before investing in HCM Acquisition Corp.