International Media Acquisition Corp. (IMAQ) Postpones Extension Vote

International Media Acquisition Corp. (NASDAQ:IMAQ) announced this morning that its special meeting, originally scheduled for today, has been pushed back to tomorrow, January 27.

The postponement was due to a change in the terms of the funds being deposited into the company’s trust in connection with each extension to $385,541.10 being deposited for the initial 3 month extension and $128,513.70 being deposited for each additional monthly extension.

In addition to the change to the funding amount, International Media intends to use this extra day to solicit investors to reverse their redemption notices.

The SPAC also announced that it entered into a Loan and Transfer Agreement pursuant to which its sponsor is allowed to borrow an initial loan of $385,541.10 and $128,513.70 per month. This will be done at International Media’s discretion which will in turn be loaned by the sponsor to cover certain extension payments to the trust.  The loan will be payable within five days of the date on which International Media completes its deal.

As additional consideration for the lender making the loan available to the sponsor, International Media will issue 500,000 shares of common stock to the lender, and for the monthly loan, the company will issue 166,700 shares of common stock for each loan. These securities will be subject to no transfer restrictions or any other lock-up provisions, earn outs or other contingencies.

International Media expects to use the proceeds of the loan to fund amounts deposited into the trust account in connection with each extension.

The company announced in October 2022 that it entered into a stock purchase agreement by which it will acquire Risee Entertainment and Reliance Studios for $102 million in cash and $38 million in investment. Mumbai-based Reliance Studios produces films, shows and games primarily for the Indian market.