International Media Acquisition Corp. (NASDAQ:IMAQ) has been notified by Nasdaq of non-compliance with listing rules due to its failure to file an annual report on time. The company, which operates in the motion picture and video tape production industry, received the notice on Monday, July 9, 2024, as it did not submit its Form 10-K for the period ended March 31, 2024.
The Nasdaq Listing Rule 5250(c)(1) requires companies to file periodic financial reports promptly. International Media Acquisition Corp. now has 60 days to provide a compliance plan to Nasdaq. If the plan is accepted, the company may be granted up to 180 days from the original filing deadline, or until December 30, 2024, to file its overdue annual report and regain compliance.
As of now, the notice does not affect the listing or trading of the company's securities on the Nasdaq Stock Market. The company's securities, including common stock, warrants, rights, and units, continue to be listed under the symbols IMAQ, IMAQW, IMAQR, and IMAQU, respectively.
The company, headquartered in North Brunswick (NYSE:BC), New Jersey, has expressed its intention to work closely with its auditors and advisors to file the required annual report as soon as possible and regain compliance with Nasdaq's listing requirements.
This development is based on the company's latest SEC filing and has no immediate impact on the trading of its securities.
In other recent news, International Media Acquisition Corp. has made significant amendments to its previously issued unsecured promissory notes according to a recent SEC filing.
The company disclosed that it had altered the terms of promissory notes with JC Unify Capital (Holdings) Limited, granting JC Unify the ability to convert these notes into units of the company's common stock immediately before the closing of a business combination. The units, as outlined in the amendments, are comprised of one share of common stock and one right to receive one-twentieth of one share of common stock of International Media Acquisition Corp.
The amendments also redefine events of default to include the company's failure to issue the conversion securities as required. This development comes as International Media Acquisition Corp. continues to structure its financial obligations ahead of a planned business combination. The specific terms of the amendments, including the conversion rates and conditions, have been detailed in the exhibits attached to the SEC filing.
These are recent developments in the company's operations.
InvestingPro Insights
As International Media Acquisition Corp. navigates the challenges of Nasdaq compliance, a look at the company's financial health through InvestingPro data reveals some areas of concern. With a market cap of $86.75 million, IMAQ has a negative P/E ratio of -136.9, reflecting its lack of profitability over the last twelve months. Moreover, the adjusted P/E ratio for the same period stands at -95.29, indicating that investors are wary of future earning potential. The company's operating income also reflects difficulties, with an adjusted figure of -$1.78 million.
InvestingPro Tips suggest that IMAQ suffers from weak gross profit margins and has short-term obligations that exceed its liquid assets, which could pose risks to its financial stability. Additionally, the company has not been profitable over the last twelve months and does not pay dividends, which might be a red flag for income-focused investors. For those considering a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into IMAQ's financial situation and potential investment risks.
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