International Media Acquisition Corp, floated by Shibasish Sarkar (erstwhile group CEO of Reliance Entertainment) with much fanfare last year, is on the verge of closing down, it would seem. At its special meeting on July 26, 2022, more than 70% of its shareholders opted to redeem their shares. Therefore, the Special Purpose Acquisition Company (SPAC) will now have to return the monies of its investors. IMAC on July 26, 2022 proposed in the special meeting to amend the company’s investment management trust agreement dated July 28, 2021, by and between the company and Continental Stock Transfer & Trust Company, allowing it to extend the time the company has to complete a business combination twice for an additional three months each time. This means, the company has time till January 28, 2023, by depositing into the company’s trust account $3,50,000 for each three-month extension. However, the fact remains that more than 70% of its stockholders have elected to redeem their shares.
Shibasish Sarkar had last year been in talks with Anil Ambani to buy Reliance Entertainment as a Management Buyout (MBO) by using funds from his SPAC, International Media Acquisition Corp. It was rumoured that the deal could value Reliance Entertainment at Rs. 800 to 1,000 crore.
Sarkar had on 28th July, 2021 announced an IPO of IMAC of $200 million in the US with a Nasdaq listing. The company was designed to be a blank check company formed for effecting a business combination with one or more businesses. IMAC intended to pursue prospective targets in North America, Europe and Asia (excluding China) in the media and entertainment industry. The proceeds of the IPO were to be used to fund such business combination.
Unfortunately, the plans have now gone phut.