Cinedigm’s Largest Stockholder Converts $15 Million of Convertible Debt into Common Stock at $1.50 Per Share
September 11 2020 - 10:00AM
Business Wire
Move Significantly Reduces Cinedigm’s
Overall Debt and Interest Expense
Cinedigm (NASDAQ: CIDM) announced today an agreement to convert
an aggregate of $15 million in convertible note debt to common
equity at $1.50 per share in accordance with the terms of the debt.
The two convertible notes being converted are currently held by
Global Investment SPC-Bison Global No. 1 SP and MingTai Investment
LP. The notes have a principal amount of $10 million with an annual
interest rate of 5.0% and a principal amount of $5 million with an
annual interest rate of 8.0%. Both firms are affiliates of Peixin
Xu, the Chairman of Bison Capital Holding Company Limited, which is
indirectly Cinedigm’s largest stockholder.
“This conversion of $15 million in debt to equity significantly
strengthens our balance sheet and greatly reduces our annual
interest expense,” said Chris McGurk, Cinedigm Chairman and CEO.
“This is not only a very strong step forward for us financially, it
is also a very positive affirmation of the value of our equity by
Bison Global and MingTai Investment LP.”
“We strongly believe in Cinedigm’s upside potential in the
explosively growing global streaming business and are committed to
supporting its growth in every way we can. A strengthened balance
sheet will improve Cinedigm’s profitability and pave the way for
new opportunities,” said Peixin Xu, Chairman, Bison Capital. “We
will continue to support Cinedigm as the Company rapidly builds out
its streaming channel portfolio and global OTT footprint.”
“Over the last year, we have made great progress in
strengthening our balance sheet and this conversion of $15 million
of debt into equity is another significant step forward in that
regard,” said Gary Loffredo, Cinedigm COO. “Including this move, we
will have reduced our total debt by $36.1 million or 55% since the
end of Fiscal Year 2019 and will have lowered our annual interest
costs by $3 million or 50% over that same period.”
ABOUT CINEDIGM
For twenty years, Cinedigm (CIDM) has been at the forefront of
the digital transformation of entertainment. Today, Cinedigm
continues that mission by providing content, channels and services
to the world’s largest media, technology and retail companies. Our
content aggregation and distribution services power the world’s
leading digital platforms and retailers. Cinedigm’s Digital
Networks group provides channels and services that entertain
consumers globally across hundreds of millions of devices. For more
information, visit www.cinedigm.com.
ABOUT BISON CAPITAL
Founded by Peixin Xu in 2014, Bison Capital Holding Company
Limited focuses on investments in the media and entertainment,
healthcare and financial service industries. The company has made
multiple investments in film and TV production, film distribution
and entertainment-related mobile Internet services, including Bona
Film, Xunlei and Weiying Technologies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200911005302/en/
Jill Calcaterra jcalcaterra@cinedigm.com 310-466-5135
Cinedigm (NASDAQ:CIDM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Cinedigm (NASDAQ:CIDM)
Historical Stock Chart
From Sep 2023 to Sep 2024