Page 6 of 13 – SEC Filing Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION The Reporting Persons used approximately $5,180,000 (excluding brokerage
commissions) in the aggregate to purchase the Common Stock reported in this Schedule 13D.
The source of the funds used to acquire the Common Stock reported
herein as beneficially owned by CGI and Mr. Hall is the working capital of the Clinton Funds, and margin borrowings described in
the following sentence. Such shares of Common Stock are held by the Clinton Funds in commingled margin accounts, which may extend
margin credit to the Clinton Funds from time to time, subject to applicable federal margin regulations, stock exchange rules and
credit policies. In such instances, the positions held in the margin account are pledged as collateral security for the repayment
of debit balances in the account. The margin accounts bear interest at a rate based upon the broker’s call rate from time
to time in effect. Because other securities are held in the margin accounts, it is not possible to determine the amounts, if any,
of margin used to purchase the Common Stock reported herein as beneficially owned by CGI and Mr. Hall.
The source of the funds used to acquire the Common Stock reported
herein as held by Imation is cash on its balance sheet.
Item 4. PURPOSE OF TRANSACTION The Reporting Persons initially acquired beneficial ownership of the Common Stock of the Issuer for investment
purposes because they believed the Issuer’s Common Stock was undervalued and represented an attractive investment opportunity.
In the Reporting Persons’ view, the strong financial results and forward guidance reported by the Issuer this week reinforced
such beliefs. The Reporting Persons have had a number of meetings with executive management
of the Issuer since the beginning of this calendar year to discuss, among other things, the Company’s strategic positioning,
the transition in executive management, tactics to improve the Issuer’s profitability margins and operating efficiency, and
the plans and strategies of the board of directors of the Issuer (the “Board”) to create shareholder value. The
Reporting Persons intend to continue to have discussions regarding such matters with the Issuer’s management and the
Board, and may discuss such matters with other shareholders of the Issuer and other third parties. The Reporting Persons recognize the Issuer’s prodigious results during the first two quarters of its
current fiscal year and expect that the Issuer’s current management team will continue the trend of improved execution. Furthermore,
the Reporting Persons believe that the Issuer has a solid foundation for long-term growth under the stewardship of newly appointed
CEO, Bob Rosenblatt.
| Item 3. | SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION |
| The Reporting Persons used approximately $5,180,000 (excluding brokerage The source of the funds used to acquire the Common Stock reported The source of the funds used to acquire the Common Stock reported |
| Item 4. | PURPOSE OF TRANSACTION |
| The Reporting Persons initially acquired beneficial ownership of the Common Stock of the Issuer for investment purposes because they believed the Issuer’s Common Stock was undervalued and represented an attractive investment opportunity. In the Reporting Persons’ view, the strong financial results and forward guidance reported by the Issuer this week reinforced such beliefs. | |
| The Reporting Persons have had a number of meetings with executive management of the Issuer since the beginning of this calendar year to discuss, among other things, the Company’s strategic positioning, the transition in executive management, tactics to improve the Issuer’s profitability margins and operating efficiency, and the plans and strategies of the board of directors of the Issuer (the “Board”) to create shareholder value. The Reporting Persons intend to continue to have discussions regarding such matters with the Issuer’s management and the Board, and may discuss such matters with other shareholders of the Issuer and other third parties. | |
| The Reporting Persons recognize the Issuer’s prodigious results during the first two quarters of its current fiscal year and expect that the Issuer’s current management team will continue the trend of improved execution. Furthermore, the Reporting Persons believe that the Issuer has a solid foundation for long-term growth under the stewardship of newly appointed CEO, Bob Rosenblatt. |
