UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant
to Section 14(a)
of the Securities Exchange Act of 1934
| Filed by the Registrant |
x |
| Filed by a Party other than the Registrant |
¨ |
Check the appropriate box:
| ¨ |
Preliminary Proxy Statement |
| ¨ |
Confidential, for the use of the Commission only
(as permitted by Rule 14a-6(e)(2)) |
| x |
Definitive Proxy Statement |
| ¨ |
Definitive Additional Materials |
| ¨ |
Soliciting Material Pursuant to §240.14a-12 |
INTERNATIONAL
MEDIA ACQUISITION CORP.
(Name of Registrant as Specified in its Charter)
(Name of Person(s) Filing Proxy Statement,
if Other Than the Registrant)
Payment of Filing Fee (Check
the appropriate box):
| x |
No fee required. |
| ¨ |
Fee paid previously with preliminary materials. |
| ¨ |
Fee computed on table in exhibit required by Item 25(b) per
Exchange Act Rules 14a-6(i)(1) and 0-11. |
INTERNATIONAL MEDIA ACQUISITION
CORP.
1604 US Highway 130
North Brunswick, NJ 08902
July 6, 2022
Dear Stockholders:
On behalf of the Board
of Directors of International Media Acquisition Corp. (the “Company,” “International
Media,” “IMAQ” or “we”), I invite you to attend our Special
Meeting of Stockholders (the “Special Meeting”). We hope you can join us. The Special Meeting will be held
at 10:00 a.m. Eastern Time on July 26, 2022. IMAQ will be holding the Special Meeting via teleconference using the
following dial-in information:
Telephone access (listen-only):
Within the U.S. and Canada:
1 800-450-7155 (toll-free)
Outside of the U.S. and Canada:
1 857-999-9155 (standard rates apply)
Passcode for telephone access:
8389737#
The
Notice of Special Meeting of Stockholders, the Proxy Statement and the proxy card accompany this letter are also available at https://www.cstproxy.com/imac/2022.
We are first mailing these materials to our stockholders on or about July 6, 2022.
As discussed in the enclosed
Proxy Statement, the purpose of the Special Meeting is to consider and vote upon the following proposals:
| |
(i) |
Proposal 1 — A proposal to amend IMAQ’s investment management trust agreement, dated as of July 28, 2021 (the “Trust Agreement”), by and between the Company and Continental Stock Transfer & Trust Company (the “Trustee”), allowing the Company to extend the Combination Period two (2) times for an additional three (3) months each time, from July 28, 2022 to January 28, 2023 (the “Trust Amendment”) by depositing into the trust account (the “Trust Account”) $350,000 (the “Extension Payment”) for each three-month extension (we refer to this proposal as the “Trust Amendment Proposal”); and |
| |
(ii) |
Proposal 2 — To act on such other matters as may properly come before the meeting or any adjournment or adjournments thereof (we refer to this proposal as the “Adjournment Proposal”). |
The Company’s Current
Charter and Trust Agreement provide that the Company has the right to extend the Combination Period two (2) times for an additional
three (3) months each time from July 28, 2022 (i.e., 12 months from the consummation of the IPO) up to January 28,
2023 (i.e., 18 months from the consummation of the IPO). The only way to extend the Combination Period from July 28, 2022 without
the need for a separate stockholder vote under the Current Charter and Trust Agreement is for our initial stockholders or their affiliates
or designees, upon five days’ advance notice prior to the applicable deadline, to deposit into the Trust Account $2,300,000
(i.e., $0.10 per issued and outstanding share of common stock issued in the IPO (the “public share”)), for each
three-month extension, on or prior to the date of the applicable deadline.
If Trust Amendment Proposal
is approved, the Company will instead have the right to extend the Combination Period two (2) times for an additional three (3) months
each time up to January 28, 2023 (i.e., 18 months from the consummation of the IPO), provided that the Extension Payment of
$350,000 for each three-month extension is deposited into the Trust Account on or prior to the date of the same applicable deadline. Therefore,
if the Trust Amendment Proposal is approved, the amount of money needed to extend the time to complete a business combination would be
significantly reduced.
While IMAQ has not entered
into an Agreement and Plan of Merger to date, management believes that it can close a business combination transaction before January 28,
2023 (i.e., the end of the 18 month period).
After consultation with Content
Creation Media LLC (the “Sponsor”), IMAQ management has reasons to believe that, if the Trust Amendment Proposal
is approved, the Sponsor or its affiliates will contribute $350,000 for each three-month extension to the Company as a loan (each loan
being referred to herein as a “Contribution”) for the Company to deposit the funds into the Trust Account as
the Extension Payment, upon five days’ advance notice prior to the applicable deadlines, and to extend the Combination Period
for an additional three (3) month period each time for two (2) times. Each Contribution will be deposited in the Trust Account on
or prior to the applicable deadline. The Contribution(s) will bear no interest and will be repayable by the Company to the Sponsor
upon consummation of an initial business combination. The loans will be forgiven if the Company is unable to consummate an initial business
combination except to the extent of any funds held outside of the Trust Account. Each of the Trust Amendment, and the Adjournment Proposal
are more fully described in the accompanying Proxy Statement.
You are not being asked
to vote on any business combination at this time. If the Trust Amendment is implemented and you do not elect to redeem your public shares
now, you will retain the right to vote on the business combination when it is submitted to stockholders and the right to redeem your public
shares into a pro rata portion of the Trust Account in the event a business combination is approved and completed or the Company has not
consummated the business combination by the applicable termination date.
In connection with the
Trust Amendment, public stockholders may elect (the “Election”) to redeem their shares for a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest not previously
released to IMAQ to pay franchise and income taxes, divided by the number of then outstanding public shares, regardless of whether
such public stockholders vote “FOR” or “AGAINST” the Trust Amendment Proposal and the Adjournment Proposal,
and an Election can also be made by public stockholders who do not vote, or do not instruct their broker or bank how to vote, at the
Special Meeting. Public stockholders may make an Election regardless of whether such public stockholders were holders as of the
record date. If the Trust Amendment Proposal is approved by the requisite vote of stockholders, the remaining holders of public
shares will retain their right to redeem their public shares when a business combination is submitted to a vote by the stockholders,
subject to any limitations set forth in our Charter. However, IMAQ will not proceed with the Trust Amendment if the redemption of
public shares in connection therewith would cause IMAQ to have net tangible assets of less than $5,000,001. Each redemption of
shares by our public stockholders will decrease the amount in our Trust Account, which held approximately $230,375,682.75 million of
marketable securities as of July 5, 2022. In addition, public stockholders who do not make the Election would be entitled to have
their shares redeemed for cash if IMAQ has not completed a business combination by January 28, 2023. Our Sponsor, our officers
and directors and our other initial stockholders, own an aggregate of 5,750,000 shares of our common stock, which we refer to
as the “Founder Shares”, that were issued prior to our initial public offering
(“IPO”) and our Sponsor owns 796,900 units, which we refer to as the “Private Placement
Units”, that were purchased by our Sponsor in a private placement which occurred simultaneously with the completion of
the IPO.
To
exercise your redemption rights, you must tender your shares to the Company’s transfer agent at least
two business days prior to the Special Meeting (or July 24, 2022). You may tender your shares by either delivering your
share certificate to the transfer agent or by delivering your shares electronically using the Depository Trust Company’s DWAC
(Deposit/Withdrawal At Custodian) system. If you hold your shares in street name, you will need to instruct your bank, broker or
other nominee to withdraw the shares from your account in order to exercise your redemption rights.
As of July 5, 2022, there was approximately $230,375,682.75 million
in the Trust Account. The current redemption price in the event that a stockholder redeems its shares as of the meeting date would be
approximately $10.01 per share. If the Trust Amendment Proposal is approved, the Company will extend the Combination Period to January 28,
2023, with three (3) month extensions two (2) times after July 28, 2022 and make deposits of $350,000 at each extension deadline
into the Trust account for the benefit of shares remaining after redemptions. Since the Company cannot estimate the number of remaining
public shares after redemptions, there is no way to determine what these deposits represent on a per share basis or what the redemption
price per share may be in the future. The redemption price per share will be approximately $10.21 per share as of January 28, 2023 in
the event that the Trust Account Proposal is not approved and no shareholders elect to redeem.
If the Trust Amendment Proposal
is not approved, we retain the right to extend the Combination Period by two (2) times for an additional three (3) months each
time from July 28, 2022, to January 28, 2023, by depositing $2,300,000, or $0.10 for each public share, to the Trust Account.
Subject to the foregoing,
the affirmative vote of at least a majority of the Company’s outstanding common stock, including the common stock owned by our initial
stockholders, will be required to approve the Trust Amendment Proposal. Notwithstanding stockholder approval of the Trust Amendment, our
Board will retain the right to abandon and not implement the Trust Amendment at any time without any further action by our stockholders.
Our Board has fixed the close
of business on June 28, 2022, as the date for determining the Company stockholders entitled to receive notice of and vote at the
Special Meeting and any adjournment thereof. Only holders of record of the Company’s common stock on that date are entitled to have
their votes counted at the Special Meeting or any adjournment thereof.
After careful consideration
of all relevant factors, the Board of Directors has determined that each of the proposals are advisable and recommends that you vote or
give instruction to vote “FOR” such proposals.
Enclosed is the Proxy Statement containing detailed information concerning
the Trust Amendment at the Special Meeting. Whether or not you plan to attend the Special Meeting, we urge you to read this material carefully
and vote your shares.
| Sincerely, |
|
| |
|
| /s/ Shibasish Sarkar |
|
| Shibasish Sarkar |
|
| Chief Executive Officer |
|
| July 6, 2022 |
|
INTERNATIONAL MEDIA ACQUISITION
CORP.
NOTICE OF SPECIAL MEETING
OF STOCKHOLDERS TO BE HELD ON JULY 26, 2022
July 6, 2022
To the Stockholders of
International Media Acquisition Corp.:
NOTICE IS HEREBY GIVEN
that a Special Meeting of Stockholders (the “Special Meeting”) of International Media Acquisition Corp.
(the “Company,” “IMAQ” or “we”), a Delaware
corporation, will be held on July 26, 2022, at 10:00 a.m. Eastern Time. The Company will be holding the Special Meeting
via teleconference using the following dial-in information:
Telephone access (listen-only):
Within the U.S. and Canada:
1 800-450-7155 (toll-free)
Outside of the U.S. and Canada:
1 857-999-9155 (standard rates apply)
Passcode for telephone access:
8389737#
The purpose of the Special
Meeting will be to consider and vote upon the following proposals:
| |
(i) |
Proposal 1 - A proposal to amend IMAQ’s investment management trust agreement, dated as of July 28, 2021 (the “Trust Agreement”), by and between the Company and Continental Stock Transfer & Trust Company (the “Trustee”), allowing the Company to extend the Combination Period two (2) times for an additional three (3) months each time, from July 28, 2022 to January 28, 2023 (the “Trust Amendment”) by depositing into the trust account (the “Trust Account”) $350,000 (the “Extension Payment”) for each three-month extension (we refer to this proposal as the “Trust Amendment Proposal”); and |
| |
(ii) |
Proposal 2 — To act on such other matters as may properly come before the meeting or any adjournment or adjournments thereof (we refer to this proposal as the “Adjournment Proposal”). |
The Board of Directors has fixed the close of business on June 28,
2022 as the record date for the Special Meeting and only holders of shares of record at that time will be entitled to notice of and to
vote at the Special Meeting or any adjournment or adjournments thereof.
| By Order of the Board of Directors |
|
| /s/ Shibasish Sarkar |
|
| Chief Executive Officer |
|
North Brunswick, New Jersey
July 6, 2022
IMPORTANT
IF
YOU CANNOT PERSONALLY ATTEND THE SPECIAL MEETING, IT IS REQUESTED THAT YOU INDICATE YOUR VOTE ON THE ISSUES INCLUDED ON THE ENCLOSED
PROXY AND DATE, SIGN AND MAIL IT IN THE ENCLOSED SELF-ADDRESSED ENVELOPE WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES OF
AMERICA.
IMPORTANT NOTICE REGARDING
THE AVAILABILITY OF PROXY MATERIALS FOR THE SPECIAL MEETING OF STOCKHOLDERS TO BE HELD ON July 26, 2022. THIS PROXY STATEMENT TO THE STOCKHOLDERS
WILL BE AVAILABLE AT https://www.cstproxy.com/imac/2022.
INTERNATIONAL MEDIA ACQUISITION
CORP.
1604 US Highway 130
North Brunswick, NJ 08902
PRELIMINARY PROXY STATEMENT
FOR
SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD July 26,
2022
FIRST MAILED ON OR ABOUT JULY 6, 2022
Date, Time and Place of the Special Meeting
The enclosed proxy is
solicited by the Board of Directors (the “Board”) of International Media Acquisition Corp. (the
“Company,” “International Media,” “IMAQ” or
“we”), a Delaware corporation, in connection with the Special Meeting of Stockholders to be held on July 26,
2022 at 10:00 a.m. Eastern time for the purposes set forth in the accompanying Notice of Meeting. The Company will be holding
the Special Meeting, and any adjournments thereof, via teleconference using the following dial-in information:
Telephone access (listen-only):
Within the U.S. and Canada:
1 800-450-7155 (toll-free)
Outside of the U.S. and Canada:
1 857-999-9155 (standard rates apply)
Passcode for telephone access:
8389737#
The
principal executive office of the Company is 1604 US Highway 130, North Brunswick, NJ 08902, and its telephone number, including area
code, is (212) 960-3677.
Purpose of the Special
Meeting
At the Special Meeting, you
will be asked to consider and vote upon the following matters:
| |
1. |
Proposal 1 — A proposal to amend IMAQ’s investment management trust agreement, dated as of July 28, 2021 (the “Trust Agreement”), by and between the Company and Continental Stock Transfer & Trust Company (the “Trustee”), allowing the Company to extend the Combination Period two (2) times for an additional three (3) months each time, from July 28, 2022 to January 28, 2023 (the “Trust Amendment”) by depositing into the trust account (the “Trust Account”) $350,000 (the “Extension Payment”) for each three-month extension (we refer to this proposal as the “Trust Amendment Proposal”); and |
| |
2. |
Proposal 2 — To act on such other matters as may properly come before the meeting or any adjournment or adjournments thereof (we refer to this proposal as the “Adjournment Proposal”). |
The Company’s Current Charter and Trust Agreement provide that
the Company has the right to extend the Combination Period two (2) times for an additional three (3) months each time from July 28,
2022 (i.e., 12 months from the consummation of the IPO) up to January 28, 2023 (i.e., 18 months from the consummation of
the IPO). The only way to extend the Combination Period from July 28, 2022 without the need for a separate stockholder vote under
the Current Charter and Trust Agreement is for our initial stockholders or their affiliates or designees, upon five days’ advance
notice prior to the applicable deadline, to deposit into the Trust Account $2,300,000 (i.e., $0.10 per issued and outstanding share of
common stock issued in the IPO (the “public share”)), for each three-month extension, on or prior to the date
of the applicable deadline.
If the Trust Amendment Proposal
is approved, the Company will instead have the right to extend the Combination Period two (2) times for an additional three (3) months
each time up to January 28, 2023 (i.e., 18 months from the consummation of the IPO), provided that the Extension Payment of
$350,000 for each three-month is deposited into the Trust Account on or prior to the date of the same applicable deadline. Therefore,
if the Trust Amendment Proposal is approved, the amount of money needed to extend the time to complete a business combination would be
significantly reduced. Public stockholders may elect to redeem all, or a portion of, their shares for a per-share price, payable in
cash, equal to the pro rata aggregate amount then on deposit in the Trust account (prior to the Extension Payment), including interest
not previously released to IMAQ to pay franchise and income taxes.
While IMAQ has not entered
into an Agreement and Plan of Merger to date, management believes that it can close a business combination transaction before January 28,
2023 (i.e., the end of the 18 month period).
After consultation with Content
Creation Media LLC (the “Sponsor”), IMAQ management has reasons to believe that, if the Trust Amendment Proposal
is approved, the Sponsor or its affiliates will contribute $350,000 for each three-month extension to the Company as a loan (each loan
being referred to herein as a “Contribution”) for the Company to deposit the funds into the Trust Account as
the Extension Payment, upon five days’ advance notice prior to the applicable deadlines, and to extend the Combination Period
for an additional three (3) month period each time for two (2) times. Each Contribution will be deposited in the Trust Account on
or prior to the applicable deadline. The Contribution(s) will bear no interest and will be repayable by the Company to the Sponsor
upon consummation of an initial business combination. The loans will be forgiven if the Company is unable to consummate an initial business
combination except to the extent of any funds held outside of the Trust Account. Each of the Trust Amendment, and the Adjournment Proposal
are more fully described in the accompanying Proxy Statement.
You are not being asked
to vote on any business combination at this time. If the Trust Amendment is implemented and you do not elect to redeem your public shares
now, you will retain the right to vote the Business Combination when it is submitted to stockholders and the right to redeem your public
shares into a pro rata portion of the Trust Account in the event a business combination is approved and completed or the Company has not
consummated the business combination by the applicable termination date.
In connection with the
Trust Amendment, public stockholders may elect (the “Election”) to redeem all or a portion of their shares
for a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account (prior to the Extension Payment), including interest not
previously released to IMAQ to pay franchise and income taxes, divided by the number of then outstanding public shares, regardless
of whether such public stockholders vote “FOR” or “AGAINST” the Trust Amendment Proposal and the Adjournment
Proposal, and an Election can also be made by public stockholders who do not vote, or do not instruct their broker or bank how to
vote, at the Special Meeting. Public stockholders may make an Election regardless of whether such public stockholders were holders
as of the record date. If the Trust Amendment Proposal is approved by the requisite vote of stockholders, the remaining holders of
public shares will retain their right to redeem their public shares when the Business Combination is submitted to a vote by the
stockholders, subject to any limitations set forth in our Charter However, IMAQ will not proceed with the Trust Amendment if the
redemption of public shares in connection therewith would cause IMAQ to have net tangible assets of less than $5,000,001. Each
redemption of shares by our public stockholders will decrease the amount in our Trust Account, which held approximately $
230,375,682.75 million of marketable securities as of July 5, 2022. In addition, public stockholders who do not make the Election
would be entitled to have their shares redeemed for cash if IMAQ has not completed a business combination by January 28, 2023.
Our Sponsor, our officers and directors and our other initial stockholders, own an aggregate of 5,750,000 shares of our common
stock, which we refer to as the “Founder Shares”, that were issued prior to our initial public offering
(“IPO”) and our Sponsor owns 796,900 units, which we refer to as the “Private Placement
Units”, that were purchased by our Sponsor in a private placement which occurred simultaneously with the completion of
the IPO.
Subject to the foregoing, the affirmative vote of at least a majority
of the Company’s outstanding common stock, including the common stock owned by our initial stockholders (the “Common
Stock”), will be required to approve the Trust Amendment Proposal. Notwithstanding stockholder approval of the Trust Amendment,
our Board will retain the right to abandon and not implement the Trust Amendment at any time without any further action by our stockholders.
Our
Board has fixed the close of business on June 28, 2022, as the date for determining the Company stockholders entitled to receive
notice of and vote at the Special Meeting and any adjournment thereof. Only holders of record of the Common Stock on that date are entitled
to have their votes counted at the Special Meeting or any adjournment thereof.
After
careful consideration of all relevant factors, the Board of Directors has determined that each of the proposals are advisable and recommends
that you vote or give instruction to vote “FOR” such proposals.
Voting Rights and Revocation of Proxies
The
record date with respect to this solicitation is the close of business on June 28, 2022 (the “Record Date”)
and only stockholders of record at that time will be entitled to vote at the Special Meeting and any adjournment or adjournments thereof.
The
shares of Common Stock represented by all validly executed proxies received in time to be taken to the Special Meeting and not previously
revoked will be voted at the meeting. This proxy may be revoked by the stockholder at any time prior to its being voted by filing with
the Secretary of the Company either a notice of revocation or a duly executed proxy bearing a later date. We intend to release this Proxy
Statement and the enclosed proxy card to our stockholders on or about July 6, 2022.
Dissenters’ Right of Appraisal
Holders
of shares of our Common Stock do not have appraisal rights under Delaware law or under the governing documents of the Company in connection
with this solicitation.
Outstanding Shares and Quorum
The
number of outstanding shares of Common Stock entitled to vote at the Special Meeting is 29,546,900. Each share of Common Stock is entitled
to one vote. The presence in person or by proxy at the Special Meeting of the holders of 14,773,450 shares, or a majority of the
number of outstanding shares of Common Stock, will constitute a quorum. There is no cumulative voting. Shares that abstain or for which
the authority to vote is withheld on certain matters (so-called “broker non-votes”) will be treated as present for quorum
purposes on all matters.
Broker Non-Votes
Holders
of shares of our Common Stock that are held in street name must instruct their bank or brokerage firm that holds their shares how to
vote their shares. If a stockholder does not give instructions to his or her bank or brokerage firm, it will nevertheless be entitled
to vote the shares with respect to “routine” items, but it will not be permitted to vote the shares with respect to “non-routine”
items. In the case of a non-routine item, such shares will be considered “broker non-votes” on that proposal.
Proposal 1
(Trust Amendment) is a matter that we believe will be considered “non-routine.”
Proposal 2
(Adjournment) is a matter that we believe will be considered “routine.”
Banks
or brokerages cannot use discretionary authority to vote shares on Proposals 1 if they have not received instructions from their
clients. Please submit your vote instruction form so your vote is counted.
Required Votes for Each Proposal to Pass
Assuming
the presence of a quorum at the Special Meeting:
| Proposal |
|
Vote Required |
|
Broker Discretionary
Vote Allowed |
| Trust Amendment |
|
Majority of outstanding shares |
|
No |
| Adjournment |
|
Majority of the outstanding shares represented by virtual attendance
or by proxy and entitled to vote thereon at the Special Meeting |
|
Yes |
Abstentions and broker non-votes
will count as a vote against the first proposal, but will not have an effect on the Adjournment Proposal assuming a quorum is present.
We may not be able to complete
an initial business combination with a U.S. target company since such initial business combination may be subject to U.S. foreign investment
regulations and review by a U.S. government entity such as the Committee on Foreign Investment in the United States (CFIUS), or ultimately
prohibited.
Our sponsor, Content Creation
Media LLC, is controlled by Shibasish Sarkar, an individual who resides in and is a citizen of India. We are therefore likely considered
a “foreign person” under the regulations administered by CFIUS and will continue to be considered as such in the future for
so long as our sponsor has the ability to exercise control over us for purposes of CFIUS’s regulations. As such, an initial business
combination with a U.S. business may be subject to CFIUS review, the scope of which was expanded by the Foreign Investment Risk Review
Modernization Act of 2018 (“FIRRMA”), to include certain non-passive, non-controlling investments in sensitive
U.S. businesses and certain acquisitions of real estate even with no underlying U.S. business. FIRRMA, and subsequent implementing regulations
that are now in force, also subjects certain categories of investments to mandatory filings. If our potential initial business combination
with a U.S.business falls within CFIUS’s jurisdiction, we may determine that we are required to make a mandatory filing or that
we will submit a voluntary notice to CFIUS, or to proceed with the initial business combination without notifying CFIUS and risk CFIUS
intervention, before or after closing the initial business combination. CFIUS may decide to block or delay our initial business combination,
impose conditions to mitigate national security concerns with respect to such initial business combination or order us to divest all or
a portion of a U.S. business of the combined company without first obtaining CFIUS clearance, which may limit the attractiveness of or
prevent us from pursuing certain initial business combination opportunities that we believe would otherwise be beneficial to us and our
shareholders. As a result, the pool of potential targets with which we could complete an initial business combination may be limited and
we may be adversely affected in terms of competing with other special purpose acquisition companies which do not have similar foreign
ownership issues.
Moreover, the process of government review, whether by the CFIUS or
otherwise, could be lengthy and we have limited time to complete our initial business combination. If we cannot complete our initial business
combination by July 28, 2022 (or January 28, 2023 if extended) because the review process drags on beyond such timeframe or because our
initial business combination is ultimately prohibited by CFIUS or another U.S. government entity, we may be required to liquidate. If
we liquidate, our public shareholders may only receive $10.01 per share, without taking into account any interest earned after July 5,
2022 (or $10.21 per share if extended until January 28, 2023 and the Trust Amendment Proposal is not approved and no shareholder elect
to redeem), and our warrants and rights will expire worthless. This will also cause you to lose the investment opportunity in a target
company and the chance of realizing future gains on your investment through any price appreciation in the combined company.
Interests of the Company’s Directors
and Officers
When
you consider the recommendation of our board, you should keep in mind that the Company’s Sponsor, officers and directors have interests
that may be different from, or in addition to, your interests as a stockholder. These interests include, among other things:
| • | IMAQ’s Sponsor
has a fiduciary obligation to its members and Shibasish Sarkar, (IMAQ’s Chief Executive
Officer and Chairman) is the controlling member of our Sponsor. Because Mr. Sarkar has
a fiduciary obligation to both IMAQ and the Sponsor, he has a conflict of interest when voting. |
| • | If an initial business
combination, is not completed, IMAQ will be required to dissolve and liquidate. In such event,
the 5,750,000 Founder Shares currently held by the initial stockholders, which were acquired
prior to the IPO will be worthless because such holders have agreed to waive their rights
to any liquidation distributions. The Founder Shares were purchased for an aggregate purchase
price of $25,000 and had an aggregate market value of approximately $57,327,500 based on
the closing price of $9.97 per share of IMAQ Common Stock on the Nasdaq Stock Market as of
July 5, 2022. |
| • | If an initial business combination, is not completed, an aggregate
of 796,900 private units purchased by IMAQ’s Sponsor for a total purchase price of $7,992,907, will be worthless. The private
units had an aggregate market value of approximately $7,992,907 based on the closing price of $10.03 per public unit on the Nasdaq Stock
Market as of July 5, 2022. |
| • | Because of these
interests, IMAQ’s initial stockholders could benefit from the completion of a business
combination that is not favorable to its public shareholders and may be incentivized to complete
an acquisition of a less favorable target company or on terms less favorable to public shareholders
rather than liquidate. For example, if the share price of the IMAQ Common Stock declined
to $5.00 per share after the close of the business combination, IMAQ’s public shareholder
that purchased shares in the initial public offering, would have a loss of $5.00 per share,
while IMAQ’s Sponsor would have a gain of $4.99 per share because it acquired the Founder
Shares for a nominal amount. In other words, IMAQ’s initial stockholders can earn a
positive rate of return on their investment even if public stockholders experience a negative
rate of return in the post-combination company. |
| • | IMAQ’s Sponsor is Content Creation Media LLC, and the manager
of Content Creation Media LLC is Shibasish Sarkar, IMAQ’s Chief Executive Officer and Chairman. If an initial business combination
is not completed, Content Creation LLC and the initial stockholders will lose an aggregate of approximately $65,765,407, comprised of
the following: |
| • | approximately $57,327,500 (based on the closing price of $9.97 per
share of IMAQ Common Stock on the Nasdaq Stock Market as of July 5, 2022) of the 5,750,000 Founder Shares that the Sponsor and the initial
stockholders hold; |
| • | approximately $7,992,907 (based on the closing price of $10.03 per
public unit on the Nasdaq Stock Market as of July 5, 2022) of the 796,900 private units that the Sponsor holds; and |
| | | |
| | • | repayment
of an interest-free loan of $445,000 made by Content Creation Media LLC since the loan will become payable only after closing of the
business combination, or the date on which IMAQ determines that it is unable to effect a business combination.
|
Voting Procedures
Each
share of our Common Stock that you own in your name entitles you to one vote on each of the proposals for the Special Meeting. Your proxy
card shows the number of shares of our Common Stock that you own.
| • | You can vote your
shares in advance of the Special Meeting by completing, signing, dating and returning the
enclosed proxy card in the postage-paid envelope provided. If you hold your shares in “street
name” through a broker, bank or other nominee, you will need to follow the instructions
provided to you by your broker, bank or other nominee to ensure that your shares are represented
and voted at the Special Meeting. If you vote by proxy card, your “proxy,” whose
name is listed on the proxy card, will vote your shares as you instruct on the proxy card.
If you sign and return the proxy card but do not give instructions on how to vote your shares,
your shares of our Common Stock will be voted as recommended by our Board of Directors. Our
Board of Directors recommends voting “FOR” the Trust
Amendment Proposal, and the Adjournment Proposal. |
| • | You can attend the
Special Meeting and vote telephonically even if you have previously voted by submitting a
proxy. However, if your shares of Common Stock are held in the name of your broker, bank
or other nominee, you must get a proxy from the broker, bank or other nominee. That is the
only way we can be sure that the broker, bank or nominee has not already voted your shares
of Common Stock. |
Solicitation of Proxies
Your
proxy is being solicited by our Board on the proposals being presented to stockholders at the Special Meeting. The Company has agreed
to pay Morrow Sodali LLC its customary fee and out-of-pocket expenses. The Company will reimburse Morrow Sodali LLC for reasonable out-of-pocket
expenses and will indemnify Morrow Sodali LLC and its affiliates against certain claims, liabilities, losses, damages and expenses. In
addition to these mailed proxy materials, our directors and officers may also solicit proxies in person, by telephone or by other means
of communication. These parties will not be paid any additional compensation for soliciting proxies. We may also reimburse brokerage
firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners. You may contact Morrow Sodali LLC at:
Morrow Sodali LLC
333 Ludlow Street, 5th Floor, South Tower,
Stamford, CT 06902
Toll Free: (800) 662-5200 or (203) 658-9400
Email: IMAQ.info@investor.morrowsodali.com
The
cost of preparing, assembling, printing and mailing this Proxy Statement and the accompanying form of proxy, and the cost of soliciting
proxies relating to the Special Meeting, will be borne by the Company.
Some
banks and brokers have customers who beneficially own Common Stock listed of record in the names of nominees. We intend to request banks
and brokers to solicit such customers and will reimburse them for their reasonable out-of-pocket expenses for such solicitations. If
any additional solicitation of the holders of our outstanding Common Stock is deemed necessary, we (through our directors and officers)
anticipate making such solicitation directly.
Delivery of Proxy Materials to Stockholders
Only
one copy of this Proxy Statement will be delivered to an address where two or more stockholders reside with the same last name or who
otherwise reasonably appear to be members of the same family based on the stockholders’ prior express or implied consent.
We
will deliver promptly upon written or oral request a separate copy of this Proxy Statement. If you share an address with at least one
other stockholder, currently receive one copy of our Proxy Statement at your residence, and would like to receive a separate copy of
our Proxy Statement for future stockholder meetings of the Company, please specify such request in writing and send such written request
to International Media Acquisition Corp.,1604 US Highway 130; North Brunswick, NJ 08902; Attention: Secretary, or call the Company promptly
at (212) 960-3677.
If
you share an address with at least one other stockholder and currently receive multiple copies of our Proxy Statement, and you would
like to receive a single copy of our Proxy Statement, please specify such request in writing and send such written request to International
Media Acquisition Corp., 1604 US Highway 130; North Brunswick, NJ 08902; Attention: Secretary.
Conversion Rights
Pursuant
to our currently existing charter, any holders of our public shares may demand that such shares be converted for a pro rata share of
the aggregate amount on deposit in the Trust Account, less taxes payable, calculated as of two business days prior to the
Special Meeting. Public stockholders may seek to have their shares redeemed regardless of whether they vote for or against the
proposals and whether or not they are holders of our Common Stock as of the Record Date. If you properly exercise your conversion
rights, your shares will cease to be outstanding and will represent only the right to receive a pro rata share of the aggregate
amount on deposit in the Trust Account which holds the proceeds of our IPO (calculated as of two business days prior to
the Special Meeting). For illustrative purposes, based on funds in the Trust Account of approximately $230,375,682.75 million on
July 5, 2022, the estimated per share conversion price would have been approximately $10.01.
In
order to exercise your conversion rights, you must:
| • | submit a request
in writing prior to 5:00 p.m., Eastern time on July 24, 2022 (two business days
before the Special Meeting) that we convert your public shares for cash to Continental Stock
Transfer & Trust Company, our transfer agent, at the following address: |
Continental Stock Transfer & Trust Company
1 State Street, 30th Floor
New York, NY 10004
Attn: Mark Zimkind
E-mail: mzimkind@continentalstock.com
and
| • | deliver your public
shares either physically or electronically through The Depository Trust Company to our transfer
agent at least two business days before the Special Meeting. Stockholders seeking
to exercise their conversion rights and opting to deliver physical certificates should allot
sufficient time to obtain physical certificates from the transfer agent and time to effect
delivery. It is our understanding that stockholders should generally allot at least two weeks
to obtain physical certificates from the transfer agent. However, we do not have any control
over this process and it may take longer than two weeks. Stockholders who hold their
shares in street name will have to coordinate with their broker, bank or other nominee to
have the shares certificated or delivered electronically. If you do not submit a written
request and deliver your public shares as described above, your shares will not be redeemed. |
Any
demand for conversion, once made, may be withdrawn at any time until the deadline for exercising conversion requests (and submitting
shares to the transfer agent) and thereafter, with our consent. If you delivered your shares for conversion to our transfer agent and
decide within the required timeframe not to exercise your conversion rights, you may request that our transfer agent return the shares
(physically or electronically). You may make such request by contacting our transfer agent at the phone number or address listed above.
Prior
to exercising conversion rights, stockholders should verify the market price of our Common Stock, as they may receive higher proceeds
from the sale of their Common Stock in the public market than from exercising their conversion rights if the market price per share is
higher than the conversion price. We cannot assure you that you will be able to sell your shares of our Common Stock in the open market,
even if the market price per share is higher than the conversion price stated above, as there may not be sufficient liquidity in our
Common Stock when you wish to sell your shares.
If you exercise your conversion
rights, your shares of our Common Stock will cease to be outstanding immediately prior to the Special Meeting (assuming the Trust Amendment
Proposal is approved) and will only represent the right to receive a pro rata share of the aggregate amount on deposit in the Trust Account.
You will no longer own those shares and will have no right to participate in, or have any interest in, the future growth of the Company,
if any. You will be entitled to receive cash for these shares only if you properly and timely request conversion.
If the Trust Amendment Proposal is not approved and we do not consummate
an initial business combination by July 28, 2022, we will be required to either (i) dissolve and liquidate our Trust Account
by returning the then remaining funds in such account to the public stockholders and our warrants to purchase Common Stock will expire
worthless, or (ii) extend the business combination for three months each time by depositing $2,300,000 (or $0.10 for each public
share) to the Trust Account.
Holders
of outstanding units must separate the underlying public shares, public rights, and public warrants prior to exercising conversion rights
with respect to the public shares.
If
you hold units registered in your own name, you must deliver the certificate for such units to Continental Stock Transfer &
Trust Company with written instructions to separate such units into public shares and public warrants. This must be completed far enough
in advance to permit the mailing of the public share certificates back to you so that you may then exercise your conversion rights with
respect to the public shares upon the separation of the public shares from the units. If a broker, dealer, commercial bank, trust company
or other nominee holds your units, you must instruct such nominee to separate your units. Your nominee must send written instructions
by facsimile to Continental Stock Transfer & Trust Company. Such written instructions must include the number of units to be
split and the nominee holding such units. Your nominee must also initiate electronically, using DTC’s deposit withdrawal at custodian
(DWAC) system, a withdrawal of the relevant units and a deposit of an equal number of public shares and public warrants. This must be
completed far enough in advance to permit your nominee to exercise your conversion rights with respect to the public shares upon the
separation of the public shares from the units. While this is typically done electronically the same business day, you should allow
at least one full business day to accomplish the separation. If you fail to cause your public shares to be separated in a timely
manner, you will likely not be able to exercise your conversion rights.
SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The
following table sets forth certain information with respect to the beneficial ownership of our voting securities by (i) each person
who is known by us to be the beneficial owner of more than 5% of our issued and outstanding Common Stock, (ii) each of our officers
and directors, and (iii) all of our officers and directors as a group as of the Record Date. The following table does not reflect
record of beneficial ownership of any shares of common stock issuable upon conversion of the rights or exercise of the warrants, as the
rights and warrants are not exercisable within 60 days of the Record Date.
| | |
Number of | | |
| |
| | |
Shares | | |
Percentage of | |
| | |
Beneficially | | |
Outstanding | |
| Name and Address of Beneficial Owner(1) | |
Owned | | |
Shares | |
| Shibasish Sarkar(2) | |
| 6,296,900 | | |
| 21.3 | % |
| Vishwas Joshi | |
| - | | |
| - | |
| Sanjay Wadhwa | |
| - | | |
| - | |
| David M. Taghioff | |
| 30,000 | | |
| * | |
| Deepak Nayar | |
| 30,000 | | |
| * | |
| Paul F. Pelosi, Jr. | |
| 30,000 | | |
| * | |
| Suresh Ramamurthi | |
| 30,000 | | |
| * | |
| Klaas P. Baks | |
| 25,000 | | |
| * | |
| All officers and directors as a group | |
| 6,441,900 | | |
| 21.8 | % |
| (8 individuals) | |
| | | |
| | |
| Content Creation Media LLC (Our Sponsor)(3) | |
| 6,296,900 | | |
| 21.3 | % |
| ATW SPAC Management LLC(4) | |
| 1,997,871 | | |
| 6.8 | % |
| Boothbay Fund Management, LLC(5) | |
| 1,997,871 | | |
| 6.8 | % |
| Polar Asset Management Partners Inc.(6) | |
| 1,800,000 | | |
| 6.1 | % |
| MMCAP International Inc. SPC(7) | |
| 2,400,000 | | |
| 8.1 | % |
* Less than one percent.
| (1) | Unless
otherwise indicated, the business address of each of the following entities or individuals
is c/o Content Creation Media LLC, 1604 US Highway 130, North Brunswick, NJ 08902. |
| (2) | Consists
of shares owned by Content Creation Media LLC, over which Shibasish Sarkar has voting and
dispositive power. Mr. Sarkar disclaims beneficial ownership of such shares, except to the
extent of any pecuniary interest therein. |
| (3) | Our
Chairman and Chief Executive Officer, Shibasish Sarkar, has voting and dispositive power
over the shares owned by Content Creation Media LLC. |
| (4) | Based
on a Schedule 13G filed on February 14, 2022 by ATW SPAC Management LLC and Antonio Ruiz-Gimenez.
The shares are held by one or more separately managed accounts managed by ATW SPAC Management
LLC, a Delaware limited liability company (the “Adviser”), which has been delegated
exclusive authority to vote and/or direct the disposition of such shares held by such separately
managed accounts, which are sub-accounts of one or more pooled investment vehicles (the “Funds”)
managed by a Delaware limited liability company. Antonio Ruiz-Gimenez is the Managing Member
of the Adviser. The address of the holder is 7969 NW 2nd Street, #401, Miami, Florida 33126. |
| (5) | Based
on a Schedule 13G filed on February 10, 2022 by Boothbay Fund Management, LLC. The shares
are held by one or more private funds (the “Boothbay Funds”), which are managed
by Boothbay Fund Management, LLC, a Delaware limited liability company (the “Boothbay
Adviser”). Ari Glass is the Managing Member of the Boothbay Adviser. Certain subadvisors
(“Subadvisors”) have been delegated the authority to act on behalf of the Boothbay
Funds, including exclusive authority to vote and/or direct the disposition of certain shares
held by the Boothbay Fund. The address of the holder is 140 East 45th Street, 14th Floor,
New York, NY 10017. |
| (6) | Based
on a Schedule 13G filed on February 3, 2022 by Polar Asset Management Partners Inc. Polar
Asset Management Partners Inc., a company incorporated under the laws of Ontario, Canada,
serves as the investment advisor to Polar Multi-Strategy Master Fund, a Cayman Islands exempted
company (“PMSMF”) with respect to the shares directly held by PMSMF. Polar Asset
Management Partners Inc. serves as investment advisor and has voting and dispositive control
over the shares held by PMSMF. The ultimate natural person who has voting and dispositive
control over the shares held by PMSMF is Paul Sabourin, Chief Investment Officer of Polar
Asset Management Partners Inc. The address of the holder is 16 York Street, Suite 2900, Toronto,
Ontario M5J 0E6, Canada. |
United States Federal Income Tax Considerations
for Stockholders Exercising Conversion Rights
THE FOLLOWING DISCUSSION IS FOR GENERAL INFORMATIONAL
PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS TAX ADVICE. YOU ARE URGED TO CONSULT YOUR OWN TAX ADVISOR WITH RESPECT TO THE SPECIFIC
TAX CONSEQUENCES TO YOU OF MAKING OR NOT MAKING THE ELECTION, INCLUDING THE EFFECTS OF U.S. FEDERAL, STATE, LOCAL AND NON-U.S. TAX
RULES AND POSSIBLE CHANGES IN LAWS THAT MAY AFFECT THE TAX CONSEQUENCES DESCRIBED IN THIS PROXY STATEMENT.
U.S. Holders
This
section applies to you if you are a “U.S. holder.” A U.S. holder is a beneficial owner of our shares of Common
Stock who or that is, for U.S. federal income tax purposes:
| • | an individual who
is a citizen or resident of the United States; |
| • | a corporation (or
other entity taxable as a corporation for U.S. federal income tax purposes) organized
in or under the laws of the United States, any state thereof or the District of Columbia; |
| • | an estate the income
of which is subject to U.S. federal income tax purposes regardless of its source; or |
| • | a trust, if (A) a
court within the United States is able to exercise primary supervision over the administration
of such trust and one or more “United States persons” (within the meaning
of the Code) have the authority to control all substantial decisions of the trust or (B) the
trust validly elected to be treated as a United States person for U.S. federal
income tax purposes. |
Taxation
of Distributions. If a U.S. holder’s conversion of shares of Common Stock is treated as a distribution,
such distributions will generally constitute a dividend for U.S. federal income tax purposes to the extent paid from our current
or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of current
and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero)
the U.S. holder’s adjusted tax basis in our Common Stock. Any remaining excess will be treated as gain realized on the sale
or other disposition of the Common Stock and will be treated as described below under the section entitled “— U.S. Holders — Gain
or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock.”
Dividends
received by a U.S. holder that is a taxable corporation will generally qualify for the dividends received deduction if the requisite
holding period is satisfied. With certain exceptions (including, but not limited to, dividends treated as investment income for purposes
of investment interest deduction limitations), and provided certain holding period requirements are met, dividends received by a non-corporate U.S. holder
will generally constitute “qualified dividends” that will be subject to tax at the maximum tax rate applicable to long-term
capital gains.
Gain
or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock. If a U.S. holder’s
conversion of shares of Common Stock is treated as a sale or other taxable disposition, a U.S. holder will generally recognize capital
gain or loss in an amount equal to the difference between the amount realized and the U.S. holder’s adjusted tax basis in
the shares of Common Stock converted. Any such capital gain or loss will generally be long-term capital gain or loss if the U.S. holder’s
holding period for the Common Stock so disposed of exceeds one year. Long-term capital gains recognized by non-corporate U.S. holders
will be eligible to be taxed at reduced rates. The deductibility of capital losses is subject to limitations.
Generally,
the amount of gain or loss recognized by a U.S. holder is an amount equal to the difference between (i) the sum of the amount
of cash and the fair market value of any property received in such disposition and (ii) the U.S. holder’s adjusted tax
basis in its Common Stock so disposed of. A U.S. holder’s adjusted tax basis in its Common Stock will generally equal the
U.S. holder’s acquisition cost less any prior distributions paid to such U.S. holder with respect to its shares of Common
Stock treated as a return of capital. If the holder purchased an investment unit consisting of both shares and warrants, the cost of
such unit must be allocated between the shares and warrants that comprised such unit based on their relative fair market values at the
time of the purchase. Calculation of gain or loss must be made separately for each block of shares owned by a U.S. holder. Any U.S. holder
who has tendered all of his actually owned shares for conversion but continues to hold warrants after the conversion will generally not
be considered to have experienced a complete termination of his interest in the Company.
Non-U.S. Holders
This
section applies to you if you are a “non-U.S. holder.” A non-U.S. holder is a beneficial
owner of our Common Stock who or that is, for U.S. federal income tax purposes:
| • | a non-resident alien individual,
other than certain former citizens and residents of the United States subject to U.S. tax
as expatriates; |
| • | a foreign corporation;
or |
| • | an estate or trust
that is not a U.S. holder; |
but does not include an
individual who is present in the United States for 183 days or more in the taxable year of disposition. If you are such an
individual, you should consult your tax advisor regarding the U.S. federal income tax consequences of a conversion.
Taxation
of Distributions. If a non-U.S. holder’s conversion of shares of Common Stock is treated as a distribution,
to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles),
such distribution will constitute a dividend for U.S. federal income tax purposes and, provided such dividend is not effectively
connected with the non-U.S. holder’s conduct of a trade or business within the United States, we will
be required to withhold tax from the gross amount of the dividend at a rate of thirty percent (30%), unless such non-U.S. holder is
eligible for a reduced rate of withholding tax under an applicable income tax treaty and timely provides proper certification of its
eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E). Any distribution not
constituting a dividend will be treated first as reducing (but not below zero) the non-U.S. holder’s adjusted
tax basis in its shares of our Common Stock and, to the extent such distribution exceeds the non-U.S. holder’s adjusted
tax basis, as gain realized from the sale or other disposition of the Common Stock, which will be treated as described below under the
section entitled “— Non-U.S. holders — Gain on Sale, Taxable Exchange or Other Taxable Disposition
of Common Stock.”
The
withholding tax described above does not apply to a dividend paid to a non-U.S. holder who provides an IRS Form W-8ECI, certifying that
such dividend is effectively connected with the non-U.S. holder’s conduct of a trade or business within the
United States. Instead, the effectively connected dividend will be subject to regular U.S. federal income tax as if the non-U.S. holder were
a U.S. holder, subject to an applicable income tax treaty providing otherwise. A non-U.S. holder that is a corporation
for U.S. federal income tax purposes and is receiving effectively connected dividends may also be subject to an additional “branch
profits tax” imposed at a rate of thirty percent (30%) (or a lower applicable treaty rate).
Gain
on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock. If a non-U.S. holder’s
conversion shares of Common Stock is treated as a sale or other taxable disposition, subject to the discussions of FATCA and backup withholding,
below a non-U.S. holder will generally not be subject to U.S. federal income or withholding tax in respect of
gain recognized on a sale, taxable exchange or other taxable disposition of our Common Stock, unless:
| • | the gain is effectively
connected with the conduct of a trade or business by the non-U.S. holder within
the United States (and, under certain income tax treaties, is attributable to a United States
permanent establishment or fixed base maintained by the non-U.S. holder); or |
| • | we are or have been
a “United States real property holding corporation” for U.S. federal
income tax purposes at any time during the shorter of the five-year period ending on the
date of disposition or the period that the non-U.S. holder held our Common
Stock, and, in the case where shares of our Common Stock are regularly traded on an established
securities market, the non-U.S. holder has owned, directly or constructively,
more than 5% of our Common Stock at any time within the shorter of the five-year period preceding
the disposition or such non-U.S. holder’s holding period for the
shares of our Common Stock. |
Unless
an applicable treaty provides otherwise, gain described in the first bullet point above will be subject to tax at generally applicable
U.S. federal income tax rates as if the non-U.S. holder were a U.S. resident. In the event the non-U.S. holder is
a corporation for U.S. federal income tax purposes, such gain may also be subject to an additional “branch profits tax”
at a thirty percent (30%) rate (or lower treaty rate).
If
the second bullet point above applies to a non-U.S. holder, gain recognized by such holder on the sale, exchange
or other taxable disposition of shares of our Common Stock will be subject to tax at generally applicable U.S. federal income tax
rates. In addition, unless our Common Stock is regularly traded on an established securities market, a buyer of our Common Stock (we
would be treated as a buyer with respect to a conversion of Common Stock) may be required to withhold U.S. federal income tax at
a rate of fifteen percent (15%) of the amount realized upon such disposition. There can be no assurance that our Common Stock will be
treated as regularly traded on an established securities market. We believe that we are not and have not been at any time since our formation
a United States real property holding company and we do not expect to be a United States real property holding corporation
immediately after the Charter Extension is completed.
FATCA
Withholding Taxes. Provisions commonly referred to as “FATCA” impose withholding of thirty percent
(30%) on payments of dividends (including constructive dividends received pursuant to a conversion of stock) on our Common Stock to “foreign
financial institutions” (which is broadly defined for this purpose and in general includes investment vehicles) and certain other non-U.S. entities unless
various U.S. information reporting and due diligence requirements (generally relating to ownership by U.S. persons of interests
in or accounts with those entities) have been satisfied, or an exemption applies (typically certified as to by the delivery of a properly
completed IRS Form W-8BEN or W-8BEN-E). Foreign financial institutions located in jurisdictions that
have an intergovernmental agreement with the United States governing FATCA may be subject to different rules. non-U.S. holders should
consult their tax advisors regarding the effects of FATCA on a conversion of Common Stock.
Information Reporting
and Backup Withholding
Generally,
information returns will be filed with the IRS in connection with payments resulting from a conversion shares of Common Stock.
Backup
withholding of tax may apply to cash payments to which a non-U.S. holder is entitled in connection with a conversion
of shares of Common Stock, unless the non-U.S. holder submits an IRS Form W-8BEN (or other
applicable IRS Form W-8), signed under penalties of perjury, attesting to such non-U.S. holder’s status as non-U.S. person.
The
amount of any backup withholding from a payment to a non-U.S. holder will be allowed as a credit against such holder’s
U.S. federal income tax liability and may entitle such holder to a refund, provided that the required information is timely furnished
to the IRS.
PROPOSAL 1: THE
TRUST AMENDMENT
The Trust Amendment
The proposed Trust Amendment
would amend our existing Investment Management Trust Agreement (the “Trust Agreement”), dated as of July 28,
2021, by and between the Company and Continental Stock Transfer & Trust Company (the “Trustee”), allowing
the Company to extend the Combination Period two (2) times for an additional three (3) months each time from July 28, 2022
to January 28, 2023 (the “Trust Amendment”) by depositing into the Trust Account $350,000 (the “Extension
Payment”) for each three-month extension. A copy of the proposed Trust Amendment is attached to this proxy statement
as Annex A. All shareholders are encouraged to read the proposed amendment in its entirety for a more complete description
of its terms.
Reasons for the Trust Amendment
The purpose of the Trust Amendment
is to give the Company the right to extend the Combination Period from July 28, 2022 two (2) times for an additional three (3) months
each time up to January 28, 2023 (i.e., 18 months from the consummation of the IPO), provided that the Extension Payment of
$350,000 for each three-month extension is deposited into the Trust Account on or prior to the date of the same applicable deadline. Therefore,
if this Trust Amendment Proposal is approved, amount of money needed to extend the time to complete a business combination would be significantly
reduced.
The Company’s Current
Charter and Trust Agreement provide that the Company has until July 28, 2022 to complete a business combination without the payment
of additional amounts into the Company’s Trust Account. Pursuant to the Company’s Current Charter and Trust Agreement, the
Company may, but is not obligated to, extend the Combination Period two (2) times by an additional three (3) months each time,
provided that the Company’s initial stockholders or their affiliates or designees, upon five days advance notice prior to the
applicable deadline, must deposit into the Trust Account $2,300,000 ($0.10 per public share), on or prior to the date of the applicable
deadline. Our initial stockholders or their affiliates or designees would receive a non-interest bearing, unsecured promissory note equal
to the amount of any such deposit that will not be repaid in the event that we are unable to close a business combination unless there
are funds available outside the Trust Account to do so.
While IMAQ has not entered
into an Agreement and Plan of Merger to date, management believes that it can close a business combination transaction before January 28,
2023 (i.e., the end of the 18 month period).
After consultation with Content
Creation Media LLC (the “Sponsor”), IMAQ management has reasons to believe that, if the Trust Amendment Proposal
is approved, the Sponsor or its affiliates will contribute $350,000 for each three-month extension to the Company as a loan (each loan
being referred to herein as a “Contribution”) for the Company to deposit the funds into the Trust Account as
the Extension Payment, upon five days’ advance notice prior to the applicable deadlines, and to extend the Combination Period
for an additional three (3) month period each time for two (2) times. Each Contribution will be deposited in the Trust Account on
or prior to the applicable deadline. The Contribution(s) will bear no interest and will be repayable by the Company to the Sponsor
upon consummation of an initial business combination. The loans will be forgiven if the Company is unable to consummate an initial business
combination except to the extent of any funds held outside of the Trust Account.
If the Trust Amendment
Is Not Approved
If
the Trust Amendment is not approved, and we do not consummate an initial business combination by July 28, 2022, we will be required
to either (i) dissolve and liquidate our Trust Account by returning the then remaining funds in such account to the public stockholders
and our warrants to purchase Common Stock will expire worthless, or (ii) extend the Combination Period for three months each
time by depositing $2,300,000 (or $0.10 for each public share) to the Trust Account.
The
Company’s initial stockholders have waived their rights to participate in any liquidation distribution with respect to their insider
shares. There will be no distribution from the Trust Account with respect to the Company’s warrants or rights, which will expire
worthless in the event we wind up. The Company will pay the costs of liquidation from its remaining assets outside of the Trust Account.
If such funds are insufficient, the Sponsor has agreed to advance the funds necessary to complete such liquidation (currently anticipated
to be no more than approximately $50,000) and have agreed not to seek repayment of such expenses.
If the Trust Amendment Is Approved
If the Trust Amendment is
approved, the amendment to the Trust Agreement in the form of Annex A hereto will be executed and the Trust Account
will not be disbursed except in connection with our completion of the Business Combination or in connection with our liquidation if we
do not complete an initial business combination by the applicable termination date. The Company will then continue to attempt to consummate
a business combination until the applicable termination date or until the Company’s Board of Directors determines in its sole discretion
that it will not be able to consummate an initial business combination by the applicable termination date as described below and does
not wish to seek an additional extension.
Required Vote
Subject to the foregoing,
the affirmative vote of at least a majority of the Company’s outstanding Common Stock, including the Founder Shares, will be required
to approve the Trust Amendment Proposal, Notwithstanding stockholder approval of the Trust Amendment, our Board will retain the right
to abandon and not implement the Trust Amendment at any time without any further action by our stockholders.
Our Board has fixed the close
of business on June 28, 2022, as the date for determining the Company stockholders entitled to receive notice of and vote at the
Special Meeting and any adjournment thereof. Only holders of record of the Company’s Common Stock on that date are entitled to have
their votes counted at the Special Meeting or any adjournment thereof.
You
are not being asked to vote on any business combination at this time. If the Trust Amendment is implemented and you do not elect to redeem
your public shares now, you will retain the right to vote on a proposed business combination when it is submitted to stockholders and
the right to redeem your public shares into a pro rata portion of the Trust Account in the event a business combination is approved and
completed or the Company has not consummated the business combination by the applicable termination date.
Recommendation
The
Company’s Board of Directors recommends that you vote “FOR” the Trust Amendment Proposal.
PROPOSAL 2: THE
ADJOURNMENT PROPOSAL
The
adjournment proposal, if approved, will request the chairman of the special meeting (who has agreed to act accordingly) to adjourn the
special meeting to a later date or dates to permit further solicitation of proxies. The adjournment proposal will only be presented to
our stockholders in the event, based on the tabulated votes, there are not sufficient votes at the time of the special meeting to approve
the other proposals in this proxy statement. If the adjournment proposal is not approved by our stockholders, the chairman of the meeting
will not exercise his ability to adjourn the special meeting to a later date (which he would otherwise have under the Chairman) in the
event, based on the tabulated votes, there are not sufficient votes at the time of the special meeting to approve the other proposals.
Required Vote
If
a majority of the shares present in person or by proxy and voting on the matter at the special meeting vote for the adjournment proposal,
the chairman of the special meeting will exercise his or her power to adjourn the meeting as set out above.
Recommendation
The
Company’s Board of Directors recommends that you vote “FOR” the adjournment proposal.
WHERE
YOU CAN FIND MORE INFORMATION
The
Company files annual, quarterly and current reports, proxy statements and other information with the SEC. The SEC maintains an Internet
web site that contains reports, proxy and information statements, and other information regarding issuers, including us, that file electronically
with the SEC. The public can obtain any documents that we file electronically with the SEC at www.sec.gov.
This
Proxy Statement describes the material elements of relevant contracts, exhibits and other information attached as annexes to this Proxy
Statement. Information and statements contained in this Proxy Statement are qualified in all respects by reference to the copy of the
relevant contract or other document included as an annex to this document.
You
may obtain additional copies of this Proxy Statement, at no cost, and you may ask any questions you may have about the Trust Amendment or the Adjournment by contacting us at the following address or telephone number:
International Media Acquisition
Corp.
1604 US Highway 130
North Brunswick, NJ 08902
(212) 960-3677
You
may also obtain these documents at no cost by requesting them in writing or by telephone from the Company’s proxy solicitation
agent at the following address and telephone number:
Morrow Sodali LLC
333 Ludlow Street, 5th Floor, South Tower,
Stamford, CT 06902
Toll Free: (800) 662-5200 or (203) 658-9400
Email: IMAQ.info@investor.morrowsodali.com
In order to receive timely delivery of the documents
in advance of the Special Meeting, you must make your request for information no later than July 19, 2022 (one week prior to the date
of the Special Meeting)..
Annex A
PROPOSED AMENDMENT
TO THE
INVESTMENT MANAGEMENT TRUST AGREEMENT
This Amendment No. 1 (this
“Amendment”), dated as of July 26, 2022, to the Investment Management Trust Agreement (as defined below) is made
by and between International Media Acquisition Corp. (the “Company”) and Continental Stock Transfer & Trust Company,
as trustee (“Trustee”). All terms used but not defined herein shall have the meanings assigned to them in the Trust
Agreement.
WHEREAS, the Company and
the Trustee entered into an Investment Management Trust Agreement dated as of July 28, 2021 (the “Trust Agreement”);
WHEREAS, Section 1(i) of
the Trust Agreement sets forth the terms that govern the liquidation of the Trust Account under the circumstances described therein;
WHEREAS, at an special
meeting of the Company held on July 26, 2022, the Company’s stockholders approved a proposal to amend the Trust Agreement
requiring the Company to deposit $350,000 into the Trust Account for each three-month extension from July 28, 2022; and
NOW THEREFORE, IT IS AGREED:
| 1. | Section 1(i) of the Trust
Agreement is hereby amended and restated in its entirety as follows: |
“(i) Commence liquidation of the Trust Account only after
and promptly after receipt of, and only in accordance with, the terms of a letter (“Termination Letter”), in a form substantially
similar to that attached hereto as either Exhibit A or Exhibit B, signed on behalf of the Company by its President, Chief Executive Officer
or Chairman of the Board and Secretary or Assistant Secretary, and complete the liquidation of the Trust Account and distribute the Property
in the Trust Account only as directed in the Termination Letter and the other documents referred to therein; provided, however, that in
the event that a Termination Letter has not been received by the Trustee by the 12-month anniversary of the closing of the IPO (“Closing”),
or, in the event that the Company extended the time to complete the Business Combination for up to 18 months from the Closing but has
not completed the Business Combination within such 18-month period, the 18 month anniversary of the Closing (as applicable, the “Applicable
Deadline”), the Trust Account shall be liquidated in accordance with the procedures set forth in the Termination Letter attached
as Exhibit B hereto and distributed to the Public Shareholders as of the Applicable Deadline, provided that the Company deposits $350,000
for outstanding public shares of common stock into the Trust Account on or prior to the 12-month anniversary of the Closing, or if the
Company’s Board of Directors further extends the time to complete the Business Combination by an additional 3-month period, the
15-month anniversary of the Closing, provided that the Company deposits an additional $350,000 for outstanding public shares of common
stock into the Trust Account on or prior to the 15-month anniversary of the Closing,; but if the Company has not completed the Business
Combination within the applicable extension of the Closing (“Last Date”), the Trust Account shall be liquidated in accordance
with the procedures set forth in the Termination Letter attached as Exhibit B hereto and distributed to the Public Shareholders as of
the Last Date. For example, if during the 12th month, the Company does not deposit $350,000 for outstanding public shares common
stock into the Trust Account by the last day of the 12th month, then the Last Date shall be the last day of the 12th
month.”
| 2. | Exhibit D of the Trust
Agreement is hereby amended and restated in its entirety as follows: |
[Letterhead of Company]
[Insert date]
Continental Stock Transfer
& Trust Company
1 State Street, 30th
Floor
New York, N.Y. 10004
Attn: Francis Wolf and
Celeste Gonzalez
| Re: | Trust Account —
Extension Letter |
Gentlemen:
Pursuant
to paragraph 1(j) of the Investment Management Trust Agreement between International Media Acquisition Corp. (“Company”)
and Continental Stock Transfer & Trust Company (“Trustee”), dated as of [______________], 2022 (“Trust Agreement”),
this is to advise you that the Company is extending the time available in order to consummate a Business Combination with the Target
Businesses for an additional three (3) months, from ______________ to ______________ (the “Extension”). Capitalized words
used herein and not otherwise defined shall have the meanings ascribed to them in the Trust Agreement.
This
Extension Letter shall serve as the notice required with respect to Extension prior to the Applicable Deadline.
In
accordance with the terms of the Trust Agreement, we hereby authorize you to deposit $350,000, which will be wired to you, into the Trust
Account investments upon receipt.
| |
Very truly yours, |
|
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INTERNATIONAL MEDIA ACQUISITION CORP. |
| |
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By: |
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|
[•], |
|
cc: Chardan Capital Markets, LLC
| 3. | All other provisions of
the Trust Agreement shall remain unaffected by the terms hereof. |
| 4. | This Amendment may be
signed in any number of counterparts, each of which shall be an original and all of which
shall be deemed to be one and the same instrument, with the same effect as if the signatures
thereto and hereto were upon the same instrument. A facsimile signature or electronic signature
shall be deemed to be an original signature for purposes of this Amendment. |
| 5. | This Amendment is intended
to be in full compliance with the requirements for an Amendment to the Trust Agreement as
required by Section 7(c) of the Trust Agreement, and every defect in fulfilling such requirements
for an effective amendment to the Trust Agreement is hereby ratified, intentionally waived
and relinquished by all parties hereto. |
| 6. | This Amendment shall be
governed by and construed and enforced in accordance with the laws of the State of New York,
without giving effect to conflicts of law principles that would result in the application
of the substantive laws of another jurisdiction. |
[signature page follows]
IN
WITNESS WHEREOF, the parties have duly executed this Amendment to the Investment Management Trust Agreement as of the date first written
above.
CONTINENTAL STOCK TRANSFER
& TRUST COMPANY, as Trustee
| By: |
|
|
| Name: |
Francis Wolf |
|
| Title: |
Vice President |
|
INTERNATIONAL MEDIA ACQUISITION CORP.
| By: |
|
|
| Name: |
Shibasish Sarkar |
|
| Title: |
Chief Executive Officer |
|
PROXY CARD
INTERNATIONAL MEDIA ACQUISITION
CORP.
PROXY FOR THE SPECIAL MEETING OF STOCKHOLDERS
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS
| Important Notice Regarding the
Availability of Proxy Materials for the Stockholder Meeting to be Held on July 26, 2022: The Proxy Statement is available at
https://www.cstproxy.com/imac/2022. |
The undersigned hereby appoints Shibasish Sarkar
as proxy of the undersigned to attend the Special Meeting of Stockholders (the “Special Meeting”) of International
Media Acquisition Corp. (the “Company”), to be held via teleconference as described in the Proxy Statement on
July 26, 2022 at 10:00 a.m. Eastern time, and any postponement or adjournment thereof, and to vote as if the undersigned were then and
there personally present on all matters set forth in the Notice of Special Meeting, dated July 6, 2022 (the “Notice”),
a copy of which has been received by the undersigned, as follows:
| 1. | PROPOSAL 1. TRUST AMENDMENT — APPROVAL OF AN
AMENDMENT TO THE COMPANY’S INVESTMENT MANAGEMENT TRUST AGREEMENT, DATED AS OF JULY 28, 2021 (THE “TRUST AGREEMENT”),
BY AND BETWEEN THE COMPANY AND CONTINENTAL STOCK TRANSFER & TRUST COMPANY (THE “TRUSTEE”), ALLOWING THE COMPANY TO
EXTEND THE COMBINATION PERIOD TWO (2) TIMES FOR AN ADDITIONAL THREE (3) MONTHS EACH TIME FROM JULY 28, 2022 TO JANUARY 28,
2023 (THE “TRUST AMENDMENT”) BY DEPOSITING INTO THE TRUST ACCOUNT $350,000 FOR EACH THREE-MONTH EXTENSION. |
| For ¨ | |
Against ¨ | |
Abstain ¨ |
| 2. | PROPOSAL 2.
ADJOURNMENT — APPROVAL TO DIRECT THE CHAIRMAN OF THE SPECIAL MEETING TO ADJOURN
THE SPECIAL MEETING TO A LATER DATE OR DATES, IF NECESSARY, TO PERMIT FURTHER SOLICITATION
AND VOTE OF PROXIES IF, BASED UPON THE TABULATED VOTE AT THE TIME OF THE MEETING, THERE ARE
NOT SUFFICIENT VOTES TO APPROVE THE PROPOSALS 1 AND 2. |
| For ¨ | |
Against ¨ | |
Abstain ¨ |
NOTE: IN HIS DISCRETION,
THE PROXY HOLDER IS AUTHORIZED TO VOTE UPON SUCH OTHER MATTER OR MATTERS THAT MAY PROPERLY COME BEFORE THE SPECIAL MEETING AND ANY ADJOURNMENT(S) THEREOF.
THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE
SPECIFIC INDICATION ABOVE. IN THE ABSENCE OF SUCH INDICATION, THIS PROXY WILL BE VOTED “FOR” EACH PROPOSAL AND, AT THE
DISCRETION OF THE PROXY HOLDER, ON ANY OTHER MATTERS THAT MAY PROPERLY COME BEFORE THE SPECIAL MEETING OR ANY POSTPONEMENT OR ADJOURNMENT
THEREOF.
| Dated: |
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Signature of Stockholder |
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PLEASE PRINT NAME |
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Certificate Number(s) |
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Total Number of Shares Owned |
Sign exactly as your name(s) appears on
your stock certificate(s). A corporation is requested to sign its name by its President or other authorized officer, with the office
held designated. Executors, administrators, trustees, etc., are requested to so indicate when signing. If a stock certificate is registered
in two names or held as joint tenants or as community property, both interested persons should sign.
PLEASE COMPLETE THE FOLLOWING:
I plan to attend the Special Meeting (Circle
one): Yes No
Number of attendees: ____________
PLEASE NOTE:
STOCKHOLDER SHOULD SIGN THE PROXY PROMPTLY AND
RETURN IT IN THE ENCLOSED ENVELOPE AS SOON AS POSSIBLE TO ENSURE THAT IT IS RECEIVED BEFORE THE SPECIAL MEETING. PLEASE INDICATE
ANY ADDRESS OR TELEPHONE NUMBER CHANGES IN THE SPACE BELOW.
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