Cinedigm Corp. Raises Additional Capital through Second Lien Loans
September 19 2016 - 9:15AM
Business Wire
Cinedigm Corp. (NASDAQ: CIDM) (the “Company”) today announced
that it sold $2.5 million principal amount of loans (the “Loans”)
and 245,000 shares (the “Shares) of the Company’s Class A common
stock, par value $0.001 per share (the “Common Stock”) in
connection with the Loans. The Loans were made pursuant to the
Company’s Second Lien Loan Agreement (the “Loan Agreement”) dated
as of July 14, 2016. The terms of the Loan Agreement, and the Loans
made thereunder, have been previously disclosed in the Company’s
Current Report on Form 8-K filed with the Securities and Exchange
Commission on July 19, 2016. The proceeds of the Loans will be used
for the payment of fees and expenses incurred in connection with
the Loans and for working capital and general corporate purposes,
including for development of the Company’s over-the-top, or OTT,
line of business. The Loans and Shares were sold to investors
including Ronald L. Chez, a member of the Company’s Board of
Directors, and Christopher J. McGurk, the Company’s Chief Executive
Officer and Chairman.
To date, the Company has closed on $4.5 million principal amount
of loans under the Loan Agreement.
About Cinedigm
Cinedigm is a leading independent content distributor in the
United States, with direct relationships with thousands of physical
retail storefronts and digital platforms, including Wal-Mart,
Target, iTunes, Netflix, and Amazon, as well as the national Video
on Demand platform on cable television.
Additionally, given Cinedigm’s infrastructure, technology,
content and distribution expertise, the Company has rapidly become
a leader in the quickly evolving over-the-top digital network
business. Cinedigm’s first channel, DOCURAMA, launched in May 2014,
and is currently available on iOS, Roku, Xbox and Samsung, with
additional platforms currently being rolled out. Cinedigm launched
CONtv, a Comic Con branded channel, on March 3, 2015. The Company’s
third OTT channel, DOVE CHANNEL, launched on September 15, 2015 and
is a digital streaming subscription service targeted to families
and kids seeking high quality and family friendly content approved
by Dove Foundation.
Cinedigm™ and Cinedigm Digital Cinema Corp™ are trademarks of
Cinedigm Corp. www.cinedigm.com. [CIDM-E]
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160919005429/en/
CinedigmJill Newhouse Calcaterra,
310-466-5135jcalcaterra@cinedigm.com
Cinedigm (NASDAQ:CIDM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cinedigm (NASDAQ:CIDM)
Historical Stock Chart
From Apr 2023 to Apr 2024