Reliance Entertainment's Shibasish Sarkar floats SPAC

The New Jersey-registered company International Media Acquisition Corp plans to raise $200-230 million through an initial public offering (IPO) on Nasdaq within the next 12-18 months

e4m by exchange4media Staff
Updated: Apr 9, 2021 9:52 AM

Reliance Entertainment CEO Shibasish Sarkar has teamed up with AP International Group managing partner Sanjay Wadhwa to launch a special purpose acquisition company (SPAC) titled International Media Acquisition Corp. (IMAC) with a view to acquiring companies in the media and entertainment (M&E) sector globally.

The New Jersey-registered company plans to raise $200-230 million through an initial public offering (IPO) on Nasdaq within the next 12-18 months. It plans to identify and acquire a business with untapped opportunities for building a public company. The company will look to acquire companies with enterprise value between $150 million and $500 million.

The company also has Walt Disney Company India's former executive director and head of studio finance Vishwas Joshi besides former co-head of CAA’s global client strategy department and current CEO of Library Pictures International David Taghioff, Stampede Ventures head Greg Silverman, film producer Deepak Nayar, and CBW chairman Suresh Ramamurthi among others.
Sarkar is the chairman and CEO of the company while Joshi is the CFO. Wadhwa is the Director and will serve as IMAC's strategic advisor.

IMAC's sponsor Content Creation Media LLC, an entity affiliated with Sarkar has committed to purchase an aggregate of 722,000 units (or 804,500 units if the over-allotment option is exercised in full), at $10.00 per private unit (for a total purchase price of $7,220,000, or $8,045,000 if the over-allotment option is exercised in full).
In its IPO prospectus, the company said that the COVID-19 global pandemic will impact the M&E industry differently within various segments. The IMAC management expects that there will be some strong businesses that may end up in special situations and may need capital and expertise to grow their business.

Highlighting the growing opportunities in the segment, the company noted that studios and production houses with strong content libraries and pipelines are seeking financing deals to make up for an unforeseen lack of liquidity. Media assets being valued significantly lower than they had been previously and new media entities like digital media, over-the-top (OTT), e-sports, animation, and visual effects studios housed within struggling traditional media companies will also be on the company's radar.

"In particular, we intend to focus our search for an initial business combination target on private companies in North America, Europe, and Asia that have positive operating cash flow or compelling economics and clear paths to positive operating cash flow, significant assets, and successful management teams that are seeking access to the U.S. public capital markets. Our selection process is expected to leverage our board’s deep and broad network of relationships, industry expertise, and deal sourcing capabilities to provide us with a strong pipeline of potential targets," IMAC said.
A SPAC is also known as a blank check company is a shell corporation listed on a stock exchange with the purpose of acquiring a private company.

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