VM HOTEL ACQUISITION CORP. PROVIDES AN UPDATE ON PROPOSED EXTENSION TO FACILITATE COMPLETION OF ITS QUALIFYING ACQUISITION

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR DISSEMINATION IN THE UNITED STATES/ 

TORONTO, Aug. 30, 2023 /CNW/ - VM Hotel Acquisition Corp. (TSX: VMH.U) and (VMH.WT.U) (the "Corporation" or "VMH"), provided an update on the status of its proposed extension of the permitted timeline to consummate its qualifying acquisition from September 30, 2023 to February 29, 2024.

A virtual meeting of the holders ("Shareholders") of Class A Restricted Voting Shares of the Corporation (the "Class A Restricted Voting Shares") to consider the approval of the extension is scheduled for September 28, 2023 at 9:00 a.m. (Toronto time). In connection with the meeting, Shareholders are being provided with the opportunity to deposit for redemption all or a portion of their Class A Restricted Voting Shares, irrespective of whether such holders vote for or against, or do not vote on, the extension resolution, provided that they deposit (and do not validly withdraw) their Class A Restricted Voting Shares for redemption prior to 9:00 a.m. (Toronto time) on September 26, 2023, which is the second business day before the meeting.

If the extension resolution is approved and the extension is made effective by the Board, VMH will (a) redeem those Class A Restricted Voting Shares that are deposited (and not validly withdrawn) for redemption, and (b) deliver to each such holder its pro rata portion of the escrow funds available in VMH's escrow account less certain specified costs. VMH estimates that the redemption amount will be US$10.22 per Class A Restricted Voting Share. The remainder of the escrow funds shall remain in the escrow account and be available for use by VMH to complete its proposed qualifying acquisition on or before February 29, 2024.

Holders of Class A Restricted Voting Shares who do not redeem their Class A Restricted Voting Shares in connection with the extension will retain their redemption rights and have a further opportunity to redeem if the Corporation consummates a qualifying acquisition prior to February 29, 2024.

If the extension resolution is not approved, VMH will be wound up and each Class A Restricted Voting Share will automatically be redeemed for its pro rata portion of the escrow funds available in VMH's escrow account less certain specified costs and taxes, as VMH would be unable to close its qualifying acquisition by September 30, 2023.

The record date for the determination of registered holders of Class A Restricted Voting Shares of VMH entitled to receive notice of, and to vote at, the meeting was the close of business on August 22, 2023 (the "Record Date"). Only holders of Class A Restricted Voting Shares whose names are entered in VMH's register of shareholders as of the close of business on the Record Date will be entitled to receive notice of, and to vote their shares at, the meeting. Registered holders of Class A Restricted Voting Shares of VMH and duly appointed proxyholders will be able to virtually attend the meeting online at https://us02web.zoom.us/j/83168981114?pwd=anptOGJnNW9vUllpN0hTNkQyUElrZz09. Beneficial holders of Class A Restricted Voting Shares of VMH (being shareholders who hold their shares through a securities dealer or broker, bank, trust company or trustee, custodian, nominee or other intermediary), who have not duly appointed themselves as their proxy and registered with VMH's transfer agent, will be able to virtually attend the meeting only as guests and to listen to the webcast but not be able to participate at the meeting.

The management information circular (the "Circular") being sent to Shareholders in connection with the meeting contains a detailed description of the extension and other information relating to VMH. We urge you to consider carefully all of the information in the Circular. Shareholders who have any questions or need additional information with respect to the voting of their Class A Restricted Voting Shares should consult their financial, legal, tax or other professional advisors. The Circular and related meeting materials will be available under the Corporation's profile on SEDAR+ at www.sedarplus.ca.

About VM Hotel Acquisition Corp.

VMH is a special purpose acquisition company incorporated under the laws of the Province of British Columbia for the purpose of effecting a qualifying acquisition within a specified period of time. VMH's head office is located at Brookfield Place, 161 Bay Street, Suite 2420, Toronto, ON, M5J 2S1 and the registered office is located at 1600 - 925 West Georgia Street Vancouver, BC V6C 3L2.

SOURCE VM Hotel Acquisition Corp

VM Hotel Acquisition Corp., Ian McAuley, President and CEO, [email protected]