International Media Acquisition on Oct. 22 entered into a stock purchase agreement with Risee Entertainment Holdings and Reliance Entertainment Studios Private Limited, both incorporated in India.
Terms call for a business combination between the SPAC and Mumbai-based Reliance Entertainment in a series of four tranches, according to a regulatory filing, totaling $102 million in cash and $38 million in investment.
Tranche 1 is for $40 million in stock at closing. Tranche 2 is for $16 million in stock and $4 million in equity capital 90 days out. Tranche 3, to be paid 12 months after closing, covers $20 million in stock and $20 million in equity capital, while Tranche 4 requires at least $26 million in stock purchases and $14 million in equity capital at 18 months post-closing. The amounts may go higher depending on the prevailing stock price.
The deal also calls for $38 million of the stock consideration to be reserved for the repayment of inter-company loans.
International Media raised $200 million in August 2021 to focus on North America, Europe and Asia for target companies within the media and entertainment sector. The SPAC secured a six-month deadline extension from shareholders in July, but 20,858,105 shares were redeemed in connection with that vote.
Reliance Entertainment produces films, web series, digital and mobile offerings, as well as gaming. Read more.
