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0001173204
2021-10-13
2021-10-13
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As filed with the Securities and Exchange Commission on October
13, 2021
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
CINEDIGM CORP.
(Exact name of registrant as specified in its charter)
Delaware
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7389
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22-3720962
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(State or other jurisdiction of
incorporation or organization)
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(Primary Standard Industrial
Classification Code Number)
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(I.R.S. Employer
Identification No.)
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237 West 35th Street, Suite 605
New York, NY 10001
(212) 206-8600
(Address, including zip
code, and telephone number, including area code, of registrant’s principal executive offices)
CHRISTOPHER J. MCGURK
Chief Executive Officer
Cinedigm Corp.
237 West 35th Street, Suite 605
New York, NY 10001
(212) 206-8600
(Name, address, including zip code and telephone
number, including area code, of agent for service)
With a copy to:
JONATHAN K. COOPERMAN, ESQ.
Kelley Drye & Warren LLP
3 World Trade Center
175 Greenwich Street
New York, New York 10007
(212) 808-7800
Approximate date of commencement of proposed sale to the public:
From time to time after the effective date of this registration statement.
If any of the securities being registered on this form are to be offered
on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection
with dividend or interest reinvestment plans, check the following box: ☒
If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number
of the earlier effective registration statement for the same offering. ☐
If this form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration
statement for the same offering. ☐
If this Form is a post-effective amendment filed pursuant to Rule 462(d)
under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration
statement for the same offering. ☐
Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,”
“accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the
Exchange Act.
Large accelerated filer ☐
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Accelerated filer ☐
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Non-accelerated filer ☒
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Smaller reporting company ☒
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Emerging growth company ☐
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CALCULATION
OF REGISTRATION FEE
Title
of Each Class of Securities to be Registered
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Amount
to be
Registered (1)
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Proposed
Maximum
Offering
Price Per
Share
(2)
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Proposed
Maximum
Aggregate
Offering Price
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Amount
of
Registration
Fee
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Class
A common stock, par value $0.001 per share
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25,210,084
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$
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2.435
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$
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61,386,554.50
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$
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5,961
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(1)
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Includes 210,084 shares of common stock previously issued by the registrant
to the selling stockholder named herein and 25,000,000 shares of common stock that are available to be issued and sold by the registrant
to the selling stockholder named herein from time to time at the registrant’s election pursuant to a common stock purchase agreement,
dated as of October 12, 2021, between the registrant and the selling stockholder, subject to satisfaction of the conditions set forth
therein. Pursuant to Rule 416 under the Securities Act of 1933, as amended, the registrant is also registering such additional indeterminate
number of shares of Class A common stock as may become issuable as a result of stock splits or stock dividends.
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(2)
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The price is estimated solely for the purpose of calculating the registration
fee pursuant to Rule 457(c) under the Securities Act and represents the average high and low trading prices of the Class A common stock
as reported on The Nasdaq Global Market on October 11, 2021.
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The registrant
hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant
shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance
with Section 8(a) of the Securities Act or until the registration statement shall become effective on such date as the Commission, acting
pursuant to said Section 8(a), may determine.
The
information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement
filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and we are not
soliciting offers to buy these securities in any jurisdiction where the offer or sale is not permitted.
Subject
to Completion, dated October 13, 2021
PRELIMINARY PROSPECTUS
25,210,084
Shares of Class A Common Stock
This prospectus relates to the offer and resale
of up to 25,210,084 shares (the “Shares”) of the Class A common stock, par value $0.001 per share (the “Common Stock”),
of Cinedigm Corp. (the “Company”) by B. Riley Principal Capital, LLC (“B. Riley Principal Capital” or the “selling
stockholder”), from time to time from and after the date of this prospectus.
The shares of Common Stock to which this prospectus
relates have been or may be issued by us to B. Riley Principal Capital pursuant to a common stock purchase agreement, dated as of October
12, 2021, we entered into with B. Riley Principal Capital (the “Purchase Agreement”). We are not selling any securities under
this prospectus and will not receive any of the proceeds from the sale of our Common Stock by the selling stockholder. However, we may
receive up to $50,000,000 aggregate gross proceeds under the Purchase Agreement from any sales of Common Stock we make to B. Riley Principal
Capital pursuant to the Purchase Agreement after the date of this prospectus. Concurrently with our execution of the Purchase Agreement
on October 12, 2021, we issued 210,084 shares of our common stock to B. Riley Principal Capital as consideration for its irrevocable commitment
to purchase shares of our Common Stock at our election in our sole discretion, from time to time after the date of this prospectus, upon
the terms and subject to the satisfaction of the conditions set forth in the Purchase Agreement. See “The Committed Equity Financing”
for a description of the Purchase Agreement and “Selling Stockholder” for additional information regarding B. Riley Principal
Capital.
The selling stockholder may sell or otherwise dispose
of the Common Stock described in this prospectus in a number of different ways and at varying prices. See “Plan of Distribution”
for more information about how the selling stockholder may sell or otherwise dispose of the Common Stock pursuant to this prospectus.
The selling stockholder is an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended
(the “Securities Act”).
We will pay the expenses incurred in registering
under the Securities Act the offer and resale of the shares of Common Stock to which this prospectus relates by the selling stockholder,
including legal and accounting fees. See “Plan of Distribution”.
The Common Stock is listed for trading on The Nasdaq
Global Market (“Nasdaq”) under the symbol “CIDM”. On October 11, 2021, the closing price of the Common Stock as
reported on Nasdaq was $2.38 per share.
Investing in our securities involves a high
degree of risk. See “Risk Factors” beginning on page 8 for a discussion of factors that you should consider before buying
shares of the Common Stock. You should also consider the risk factors described or referred to in any documents incorporated by reference
in this prospectus, and in an applicable prospectus supplement, before investing in these securities.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus.
Any representation to the contrary is a criminal offense.
The
date of this prospectus is ___________, 2021.
Table
of Contents
ABOUT
THIS PROSPECTUS
This prospectus
is part of a Registration Statement on Form S-1 that we filed with the Securities and Exchange Commission (“SEC”) using
the “shelf” registration process. Under this shelf registration process, the selling stockholder may, from time to time,
sell the shares offered by it and registered hereunder described in this prospectus. We will not receive any proceeds from the sale by
the selling stockholder of such shares.
You should
rely only on information contained in this prospectus filed with the Securities and Exchange Commission, or the SEC. Neither the delivery
of this prospectus nor the sale of our securities means that the information contained in this prospectus is correct after the date of
this prospectus.
Neither we
nor the selling stockholder has authorized anyone to provide you with any information or to make any representations other than those
contained in this prospectus or any applicable prospectus supplement or any free writing prospectuses prepared by or on behalf of us
or to which we have referred you. Neither we nor the selling stockholder takes responsibility for, and can provide no assurance as to
the reliability of, any other information that others may give you. Neither we nor the selling stockholder will make an offer to sell
the shares registered hereby in any jurisdiction where the offer or sale is not permitted.
We may also
provide a prospectus supplement or post-effective amendment to the registration statement to add information to, or update or change
information contained in, this prospectus. You should read both this prospectus and any applicable prospectus supplement or post-effective
amendment to the registration statement together with the additional information to which we refer you in the sections of this prospectus
entitled “Where You Can Find More Information.”
This prospectus
is not an offer to sell or the solicitation of an offer to buy our securities in any circumstances under which the offer or solicitation
is unlawful or in any state or other jurisdiction where the offer is not permitted. The information contained in this prospectus is accurate
only as of its date regardless of the time of delivery of this prospectus or of any sale of Common Stock.
No person
is authorized in connection with this prospectus to give any information or to make any representations about us, the securities offered
hereby or any matter discussed in this prospectus, other than the information and representations contained in this prospectus. If any
other information or representation is given or made, such information or representation may not be relied upon as having been authorized
by us.
For investors
outside of the United States: Neither we nor the registered stockholder has done anything that would permit this offering or possession
or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons
outside the United States who come into possession of this prospectus must inform themselves about, and observe any restrictions relating
to, the offering of common stock and the distribution of this prospectus outside of the United States.
Unless the
context indicates otherwise, references in this prospectus to the “Company,” “CIDM,” “we,” “us,”
“our” and similar terms refer to Cinedigm Corp. and its consolidated subsidiaries.
FORWARD-LOOKING
STATEMENTS
Various statements
contained in this report or incorporated by reference into this report constitute “forward-looking statements” within the
meaning of the federal securities laws. Forward-looking statements are based on current expectations and are indicated by words or phrases
such as “believe,” “expect,” “may,” “will,” “should,” “seek,”
“plan,” “intend” or “anticipate” or the negative thereof or comparable terminology, or by discussion
of strategy. Forward-looking statements represent as of the date of this report our judgment relating to, among other things, future
results of operations, growth plans, sales, capital requirements and general industry and business conditions applicable to us. Such
forward-looking statements are based largely on our current expectations and are inherently subject to risks and uncertainties. Our actual
results could differ materially from those that are anticipated or projected as a result of certain risks and uncertainties, including,
but not limited to, a number of factors, such as:
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successful execution of our business strategy, particularly
for new endeavors;
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the performance of our targeted markets;
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competitive product and pricing pressures;
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changes in business relationships with our major customers;
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successful integration of acquired businesses;
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the content we distribute through our in-theatre, on-line
and mobile services may expose us to liability;
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general economic and market conditions;
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the effect of our indebtedness
on our financial condition and financial flexibility, including, but not limited to, the ability to obtain necessary financing for
our business;
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disruptions to our business
due to the COVID-19 pandemic, including workforce inability to perform in the ordinary course due to illness or access restrictions;
and
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the other risks and uncertainties that are set forth
under the heading “Risk Factors” beginning on page 8 of this prospectus.
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These factors
are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of
our forward-looking statements. Other unknown or unpredictable factors could also have material adverse effects on future results. Except
as otherwise required to be disclosed in periodic reports required to be filed by public companies with the SEC pursuant to the SEC’s
rules, we have no duty to update these statements, and we undertake no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, we cannot assure you that
the forward-looking information contained in this report will in fact transpire.
PROSPECTUS
SUMMARY
This summary
highlights information contained elsewhere in this prospectus, any prospectus supplement and the documents incorporated by reference.
It does not contain all of the information that you should consider before making a decision to invest in the Common Stock. You should
read carefully the entire prospectus, any applicable prospectus supplement and the documents incorporated by reference, including “Risk
Factors” and the Consolidated Financial Statements and Notes thereto included elsewhere or incorporated by reference in this prospectus
or any prospectus supplement.
In this prospectus,
“Cinedigm”, “we,” “us,” “our” and the “Company” refer to Cinedigm Corp. and
its subsidiaries unless the context otherwise requires.
OUR
BUSINESS
OVERVIEW
Since our
inception, we have played a significant role in the digital distribution revolution that continues to transform the media landscape.
In addition to our pioneering role in transitioning approximately 12,000 movie screens from traditional analog film prints to digital
distribution, we have become a leading distributor of independent content, both through organic growth and acquisitions. We distribute
products for major brands such as the Hallmark Channel, Televisa, ITV, Nelvana, ZDF, Konami, NFL, NHL and Scholastic, as well as leading
international and domestic content creators, movie producers, television producers and other short form digital content producers. We
collaborate with producers, major brands and other content owners to market, source, curate and distribute quality content to targeted
audiences through (i) existing and emerging digital home entertainment platforms, including but not limited to, iTunes, Amazon Prime,
Netflix, Hulu, Xbox, Tubi, Roku, Pluto TV, and cable video-on-demand (“VOD”), and (ii) physical goods, including DVD and
Blu-ray Discs.
We report
our financial results in two primary segments as follows: (1) cinema equipment business and (2) media content and entertainment business
(“Content & Entertainment” or “CEG”). The cinema equipment business segment consists of the non-recourse,
financing vehicles and administrators for our digital cinema equipment (the “Systems”) installed in movie theatres throughout
North America and several international countries. It also provides fee-based support to over 6,200 movie screens as well as directly
to exhibitors and other third-party customers in the form of monitoring, billing, collection and verification services. Our Content &
Entertainment segment is a market leader in: (1) ancillary market aggregation and distribution of entertainment content and (2) branded
and curated over-the-top (“OTT”) digital network business providing entertainment channels and applications.
Beginning
in December 2015, certain of our cinema equipment began to reach the conclusion of their 10-year deployment payment period with certain
distributors and, therefore, Virtual Print Fees (“VPF”) revenues ceased to be recognized on such Systems, related to such
distributors. Furthermore, because the Phase I Deployment installation period ended in November 2007, a majority of the VPF revenue associated
with the Phase I Deployment Systems has ended. The reduction in VPF revenue on cinema equipment business systems approximately coincided
with the conclusion of certain of our non-recourse debt obligations and, therefore, the reduced cash outflows related to such non-recourse
debt obligations partially offset the reduced VPF revenue since November 2017.
Under the
terms of our standard cinema equipment licensing agreements, exhibitors will continue to have the right to use our Systems through the
end of the term of the licensing agreement, after which time, they have the option to: (1) return the Systems to us; (2) renew their
license agreement for successive one-year terms; or (3) purchase the Systems from us at fair market value. As permitted by these agreements,
we typically pursue the sale of the Systems to such exhibitors. Cinedigm recognizes revenue once the customer takes possession of the
systems and is predicated on Cinedigm’s receipt of sale proceeds. Such sales were as originally contemplated as the conclusion
of the digital cinema deployment plan.
We are structured
so that our cinema equipment business segment operates independently from our Content & Entertainment business. As of June 30, 2021,
we had approximately $3.0 million of non-recourse outstanding debt principal that relates to, and is serviced by, our cinema equipment
business. We had approximately $0.4 million of outstanding debt principal, as of June 30, 2021 that is attributable to our Content &
Entertainment and Corporate segments.
Risks
and Uncertainties
The COVID-19
pandemic and related economic repercussions created significant volatility and uncertainty impacting the Company’s results for
the period. As part of our Content & Entertainment business, the Company sells DVDs and Blu-ray discs at brick-and-mortar stores.
With the closure of non-essential retail stores beginning in the spring of 2020, the sale of physical discs through our retail partners
declined although this was partially offset by digital purchases of physical product. As part of our Cinema Equipment business, the Company
earns revenue when movies are exhibited in theatres. As vaccines became readily available and COVID cases decreased, major studios began
to test consumer confidence by releasing blockbusters in the theatrical venues during the quarter ended June 30, 2021. This test period
encouraged theatre re-openings and proved commercial viability for theatrical distribution of tentpole films. Films released during this
period saw an uptick in box office revenue compared to the previous 12 months; however, box office results remained below pre-COVID expectations
due to limited seating capacities and shortened windows for release on streaming platforms such as premium video on demand (“PVOD”)
and subscription video on demand (“SVOD”). To the extent films are not shown in theatres, we do not earn revenue.
Longer term,
there may be a shift in consumer preference towards digital consumption over theatrical viewing. Studios may reduce their theatrical
slates to tentpoles and certain genres releasing other content directly on their own streaming services. If fewer movies are released
theatrically, this shift to digital viewing reduces revenue opportunities for virtual print fees and sales of digital cinema equipment.
While the Company has been encouraged by the pace of mass vaccinations, spikes or the emergence of new variants could require future
closures, which impact the Cinema Equipment business.
In connection
to the CEG business, if larger branded companies choose to make their content available earlier on their own streaming platforms, this
could limit our ability monetize this content on a transactional digital basis, as consumers can access it via the company’s streaming
platform. However, most content suppliers including filmmakers and producers, do not have their own streaming platforms and rely on us
for distribution through our digital home entertainment business and OTT digital networks. As a result, this risk is limited, and our
digital distribution capabilities and digital networks provide us with the opportunity to take advantage of this consumer shift towards
digital consumption.
Over the
last year and a half, the COVID-19 pandemic resulted in a film and TV production slow-down. Independent producers and filmmakers had
to either suspend or delay their productions due to rising infection rates and the high costs of appropriate COVID-19 production protocols.
As a result, there are fewer available films to acquire, so our pipeline for content could be negatively impacted. As well, with the
rise of new variants, productions may be at risk again of shutting down or being delayed, which would further limit available content.
The COVID-19
pandemic has also resulted in an acceleration of cord-cutting, and, as more consumers move away from cable, this could lead to a decrease
in cable TV VOD revenues, as well as a decrease in licensing fees as Pay One window budgets get shifted from licensing and towards originals.
However, given the overall shift towards digital consumption, these risks may be offset by increased revenues from transactional, subscription
and ad supported/FAST platforms, including our own owned and operated digital network business.
The Committed
Equity Financing
On October 12, 2021, we entered into the Purchase Agreement and a registration
rights agreement (the “Registration Rights Agreement”), with B. Riley Principal Capital. Pursuant to the Purchase Agreement,
we have the right to sell to B. Riley Principal Capital up to $50 million of shares of our Common Stock, subject to certain limitations
and conditions set forth in the Purchase Agreement, from time to time during the term of the Purchase Agreement. Sales of Common Stock
to B. Riley Principal Capital under the Purchase Agreement, and the timing of any such sales, are solely at our option, and we are under
no obligation to sell any securities to B. Riley Principal Capital under the Purchase Agreement. In accordance with our obligations under
the Registration Rights Agreement, we have filed the registration statement that includes this prospectus with the SEC to register under
the Securities Act the resale by B. Riley Principal Capital of up to 25,210,084 shares of Common Stock, consisting of 210,084 shares of
Common Stock that we issued to B. Riley Principal Capital in consideration of its commitment to purchase shares of Common Stock at our
election under to the Purchase Agreement, and up to 25,000,000 shares of Common Stock that we may elect, in our sole discretion, to issue
and sell to B. Riley Principal Capital, from time to time from and after the Commencement Date (as defined below) under the Purchase Agreement.
Upon the
satisfaction of the conditions to B. Riley Principal Capital’s purchase obligation set forth in the Purchase Agreement (the “Commencement”),
including that the registration statement that includes this prospectus be declared effective by the SEC and the final form of this prospectus
is filed with the SEC, we will have the right, but not the obligation, from time to time at our sole discretion over the 24-month period
after the date on which the Commencement occurs (the “Commencement Date”), to direct B. Riley Principal Capital to purchase
up to a specified maximum amount of shares of Common Stock as set forth in the Purchase Agreement (each such purchase, a “Purchase”)
by delivering written notice to B. Riley Principal Capital (each, a “Purchase Notice”) between 6:00 a.m. and 9:00 a.m., New
York City time, on any trading day (each, a “Purchase Date”), so long as (i) the closing sale price of our Common Stock on
the trading day immediately prior to such Purchase Date is not less than $0.50 (subject to adjustment as set forth in the Purchase Agreement)
and (ii) all shares of Common Stock subject to all prior Purchases effected by us under the Purchase Agreement have theretofore been
received by B. Riley Principal Capital electronically as set forth in the Purchase Agreement.
The per
share purchase price for the shares of Class A common stock that we elect to sell to the Selling Stockholder in a Purchase pursuant
to the Purchase Agreement, if any, will be determined by reference to the volume weighted average price of our Common Stock (the
“VWAP”), for the full period of regular trading hours on Nasdaq (the “Purchase Valuation Period”), on the
applicable Purchase Date for such Purchase, less a fixed 5% discount. There is no upper limit on the price per share that B. Riley
Principal Capital could be obligated to pay for the Common Stock we may elect to sell to it in any Purchase
under the Purchase Agreement. The purchase price per share of Common Stock that we may elect to sell to B. Riley Principal Capital
in a Purchase under the Purchase Agreement will be equitably adjusted for any reorganization, recapitalization, non-cash dividend,
stock split, reverse stock split or other similar transaction occurring during the applicable Purchase Valuation Period for such
Purchase.
From and
after Commencement, we will control the timing and amount of any sales of Common Stock to B. Riley Principal Capital. Actual sales of
shares of our Common Stock to B. Riley Principal Capital under the Purchase Agreement will depend on a variety of factors to be determined
by us from time to time, including, among other things, market conditions, the trading price of our Common Stock and determinations by
us as to the appropriate sources of funding for our business and its operations.
Under the applicable Nasdaq rules, in no event may we issue to B.
Riley Principal Capital under the Purchase Agreement more than 33,805,110 shares of Common Stock, which number of shares is equal to
19.99% of the shares of the Common Stock outstanding immediately prior to the execution of the Purchase Agreement (the
“Exchange Cap”), unless (i) we obtain stockholder approval to issue shares of Common Stock in excess of the Exchange Cap
in accordance with applicable Nasdaq rules, or (ii) the average price per share paid by B. Riley Principal Capital for all of the
shares of Common Stock that we direct B. Riley Principal Capital to purchase from us pursuant to the Purchase Agreement, if any,
equals or exceeds $2.3949 per share (representing the lower of the official closing price of our common stock on Nasdaq on the
trading day immediately preceding the date of the Purchase Agreement and the average official closing price of our common stock on
Nasdaq for the five consecutive trading days ending on the trading day immediately preceding the date of the Purchase Agreement, as
adjusted pursuant to applicable Nasdaq rules). Moreover, we may not issue or sell any shares of Common Stock to B. Riley Principal
Capital under the Purchase Agreement which, when aggregated with all other shares of Common Stock then beneficially owned by B.
Riley Principal Capital and its affiliates (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and Rule 13d-3 promulgated thereunder), would result in B. Riley Principal Capital
beneficially owning more than 4.99% of the outstanding shares of Common Stock (the “Beneficial Ownership Cap”).
The net proceeds
to us from our sales of Common Stock to B. Riley Principal Capital under the Purchase Agreement, if any, will depend on the frequency
and timing that we elect to make such sales to B. Riley Principal Capital, and the prices at which such shares are sold to B. Riley Principal
Capital pursuant to the Purchase Agreement. To the extent we sell shares under the Purchase Agreement, we currently plan to use any proceeds
therefrom for working capital and general corporate purposes, which may include acquisitions with respect to our current strategy of
acquiring content for our streaming and OTT channel business.
There are no restrictions on future financings, rights of first refusal,
participation rights, penalties or liquidated damages in the Purchase Agreement or Registration Rights Agreement other than a prohibition
on entering (with certain limited exceptions) into a “Variable Rate Transaction,” as defined in the Purchase Agreement. B.
Riley Principal Capital has agreed that none of B. Riley Principal Capital, its officers, its sole member or any entity managed or controlled
by B. Riley Principal Capital or its sole member will engage in or effect, directly or indirectly, for its own account or for the account
of any other of such persons or entities, any short sales of the Common Stock or hedging transaction that establishes a net short position
in the Common Stock during the term of the Purchase Agreement.
The Purchase Agreement will automatically terminate on the earliest
to occur of (i) the first day of the month next following the 24-month anniversary of the date of this prospectus, (ii) the date on which
the Selling Stockholder shall have purchased from us under the Purchase Agreement shares of Common Stock for an aggregate gross purchase
price of $50 million, (iii) the date on which the Common Stock shall have failed to be listed or quoted on Nasdaq or another U.S. national
securities exchange identified as an “eligible market” in the Purchase Agreement, (iv) the 30th trading day after
the date on which a voluntary or involuntary bankruptcy proceeding involving our company has been commenced that is not discharged or
dismissed prior to such trading day, and (v) the date on which a bankruptcy custodian is appointed for all or substantially all of our
property or we make a general assignment for the benefit of creditors. We have the right to terminate the Purchase Agreement at any time
after Commencement, at no cost or penalty, upon ten (10) trading days’ prior written notice to B. Riley Principal Capital. We and
B. Riley may also agree to terminate the Purchase Agreement by mutual written consent, provided that no termination of the Purchase Agreement
will be effective during the pendency of any Purchase that has not then fully settled in accordance with the Purchase Agreement. Neither
we nor B. Riley Principal Capital may assign or transfer our respective rights and obligations under the Purchase Agreement or the Registration
Rights Agreement, and no provision of the Purchase Agreement or the Registration Rights Agreement may be modified or waived by us or B.
Riley Principal Capital.
As consideration for B. Riley Principal Capital’s commitment
to purchase shares of Common Stock at our direction upon the terms and subject to the conditions set forth in the Purchase Agreement,
upon execution of the Purchase Agreement, we issued 210,084 shares of Common Stock to B. Riley Principal Capital as “Commitment
Shares.”
The Purchase
Agreement and the Registration Rights Agreement contain customary representations, warranties, conditions and indemnification obligations
of the parties. The representations, warranties and covenants contained in such agreements were made only for purposes of such agreements
and as of specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon
by the contracting parties.
Because the purchase price per share to be paid by B. Riley
Principal Capital for the shares of Common Stock that we may elect to sell to B. Riley Principal Capital under the Purchase
Agreement, if any, will fluctuate based on the market prices of our Common Stock during the applicable Purchase Valuation Period for
each Purchase made pursuant to the Purchase Agreement, if any, as of the date of this prospectus it is not possible for us to
predict the number of shares of Common Stock that we will sell to B. Riley Principal Capital under the Purchase Agreement, the
actual purchase price per share to be paid by B. Riley Principal Capital for those shares, or the actual gross proceeds to be raised
by us from those sales, if any. As of October 12, 2021, there were 169,320,196 shares of Common Stock outstanding (which includes
the 210,084 Commitment Shares we issued to B. Riley Principal Capital on October 12, 2021), of which 23,010,887 shares were held by
our affiliates. Although the Purchase Agreement provides that we may, in our discretion, from time to time after the date of this
prospectus and during the term of the Purchase Agreement, direct B. Riley Principal Capital to purchase shares of our Common Stock
from us in one or more Purchases under the Purchase Agreement, for a maximum aggregate purchase price of up to $50,000,000, only
25,210,084 shares of Common Stock (210,084 of which represent the Commitment Shares we issued to B. Riley Principal Capital upon
signing the Purchase Agreement as payment of a commitment fee for B. Riley Principal Capital’s obligation to purchase shares
of our Common Stock under the Purchase Agreement) are being registered for resale under the registration statement that includes
this prospectus. If, in addition to the 210,084 Commitment Shares that are currently outstanding, all of the additional 25,000,000
shares of Common Stock offered for resale by B. Riley Principal Capital under this prospectus were issued and outstanding as of
October 12, 2021, such shares would represent approximately 12.9% of the total number of shares of our Common Stock outstanding, and
approximately 14.7% of the total number of outstanding shares held by non-affiliates, in each case as of October 12, 2021.
If it becomes necessary for us to issue and sell to B. Riley
Principal Capital more than the 25,210,084 shares of Common Stock that are being registered for resale under this prospectus in
order to receive aggregate gross proceeds equal to $50 million under the Purchase Agreement, we must first file with the SEC one or
more additional registration statements to register under the Securities Act the resale by B. Riley Principal Capital of any such
additional shares of our Common Stock we wish to sell from time to time under the Purchase Agreement, which the SEC must declare
effective. Moreover, for so long as the Exchange Cap limitation is applicable to this transaction, we will not be able to issue and
sell more than an aggregate of 33,805,110 shares of Common Stock to B. Riley Principal Capital under the Purchase Agreement, unless
(in addition to our obligation to register the resale of such additional shares under the Securities Act) we first obtain
stockholder approval to issue shares of Common Stock in excess of the Exchange Cap in accordance with applicable Nasdaq rules. The
number of shares of our Common Stock ultimately offered for sale by B. Riley Principal Capital is dependent upon the number of
shares of Common Stock, if any, we ultimately sell to B. Riley Principal Capital under the Purchase Agreement.
The issuance
of our Common Stock to B. Riley Principal Capital pursuant to the Purchase Agreement will not affect the rights or privileges of our
existing stockholders, except that the economic and voting interests of each of our existing stockholders will be diluted. Although the
number of shares of our Common Stock that our existing stockholders own will not decrease, the shares of our Common Stock owned by our
existing stockholders will represent a smaller percentage of our total outstanding shares of our Common Stock after any such issuance.
There are substantial risks to our stockholders as a result of the sale and issuance of Common Stock to B. Riley Principal Capital under
the Purchase Agreement. See “Risk Factors.”
OUR PRINCIPAL
EXECUTIVE OFFICES
Our principal
executive offices are located at 237 West 35th Street, Suite 605, New York, NY 10001, and our telephone number is (212) 206-8600.
Our e-mail address is info@cinedigm.com and our web site address is www.cinedigm.com. Information
accessed on or through our web site does not constitute a part of this prospectus.
THE
OFFERING
Securities offered
by the selling stockholder
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Up to 25,210,084 shares of Common Stock, consisting of:
● 210,084 Commitment Shares that we issued to B. Riley Principal
Capital in consideration of its commitment to purchase shares of Common Stock at our election under the Purchase Agreement; and
● Up to 25,000,000 shares of Common Stock that we may elect,
in our sole discretion, to issue and sell to B. Riley Principal Capital, from time to time from and after the Commencement Date under
the Purchase Agreement.
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Common stock outstanding
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169,320,196 shares (1)
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Common stock outstanding after giving effect to the issuance of the shares registered hereunder
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194,320,196 shares (1)
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Use of proceeds
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We will not receive any proceeds from the resale of shares of Common Stock by the selling stockholder. However, we may receive up to $500,000,000 in aggregate gross proceeds from sales of our Common Stock to the selling stockholder that we may, in our discretion, elect to make, from time to time after the date of this prospectus, pursuant to the Purchase Agreement.
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Nasdaq symbol
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CIDM
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(1)
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As
of October 11, 2021. Excludes the following shares of Common Stock reserved for issuance or held in treasury: (i) 15,530,169 shares
pursuant to the Company’s 2017 Equity Incentive Plan, (ii) 762,500 shares pursuant to inducement stock options, stock appreciation
rights and performance share units, (iii) 261,587 shares pursuant to options that remain outstanding under our 2010 Second Amended and
Restated Equity Incentive Plan, (iv) 1,698,519 shares of Common Stock pursuant to outstanding warrants, and (v) 1,315,851 shares held
in the treasury of the Company.
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This
prospectus contains our trademarks, tradenames and servicemarks and also contains certain trademarks, tradenames and servicemarks of
other parties.
RISK
FACTORS
An
investment in our securities involves a high degree of risk and uncertainty. In addition to the other information included in this prospectus,
you should carefully consider each of the risk factors set forth in our most recent Annual Report on Form 10-K and subsequent Quarterly
Reports on Form 10-Q on file with the SEC, which are incorporated by reference into this prospectus. The risks described are not the
only ones facing our company. Additional risks not presently known to us or that we presently consider immaterial may also adversely
affect our company. If any of the risks described occur, our business, financial condition, results of operations and prospects could
be materially adversely affected. In that case, the trading price of our securities could decline, and you could lose all or part or
your investment. In assessing these risks, you should also refer to the other information included or incorporated by reference in this
prospectus supplement and the accompanying prospectus.
Risks
Related to Our Common Stock and this Offering
Risks
Related to the Committed Equity Financing
It
is not possible to predict the actual number of shares we will sell under the Purchase Agreement to B. Riley Principal Capital, or the
actual gross proceeds resulting from those sales.
On
October 12, 2021, we entered into the Purchase Agreement with B. Riley Principal Capital, pursuant to which B. Riley Principal Capital
has committed to purchase up to $50 million in shares of our Common Stock, subject to certain limitations and conditions set forth in
the Purchase Agreement. The shares of our Common Stock that may be issued under the Purchase Agreement may be sold by us to B. Riley
Principal Capital at our discretion from time to time over the 24-month period commencing on the date of this prospectus.
We
generally have the right to control the timing and amount of any sales of our shares of Common Stock to B. Riley Principal Capital under
the Purchase Agreement. Sales of our Common Stock, if any, to B. Riley Principal Capital under the Purchase Agreement will depend upon
market conditions and other factors to be determined by us. We may ultimately decide to sell to B. Riley Principal Capital all, some
or none of the shares of our Common Stock that may be available for us to sell to B. Riley Principal Capital pursuant to the Purchase
Agreement.
Because
the purchase price per share to be paid by B. Riley Principal Capital for the shares of Common Stock that we may elect to sell to B.
Riley Principal Capital under the Purchase Agreement, if any, will fluctuate based on the market prices of our Common Stock at the time
we elect to sell shares to B. Riley Principal Capital pursuant to the Purchase Agreement, if any, it is not possible for us to predict,
as of the date of this prospectus and prior to any such sales, the number of shares of Common Stock that we will sell to B. Riley Principal
Capital under the Purchase Agreement, the purchase price per share that B. Riley Principal Capital will pay for shares purchased from
us under the Purchase Agreement, or the aggregate gross proceeds that we will receive from those purchases by B. Riley Principal Capital
under the Purchase Agreement.
Although the Purchase Agreement provides that we may, in our discretion,
from time to time after the date of this prospectus and during the term of the Purchase Agreement, direct B. Riley Principal Capital to
purchase shares of our Common Stock from us in one or more Purchases under the Purchase Agreement, for a maximum aggregate purchase price
of up to $50,000,000, only 25,210,084 shares of Common Stock (210,084 of which represent the Commitment Shares we issued to B. Riley Principal
Capital upon signing the Purchase Agreement as payment of a commitment fee for B. Riley Securities’ obligation to purchase shares
of our Common Stock under the Purchase Agreement) are being registered for resale under the registration statement that includes this
prospectus. Assuming all of such 25,000,000 shares were sold to B. Riley Securities at a 5% discount to the last closing sale price of
our Common Stock as reported on Nasdaq on October 11, 2021, or approximately $2.26 per share, such number of shares would be sufficient
to enable us to receive aggregate gross proceeds from the sale of such shares to B. Riley Principal Capital equal to B. Riley Principal
Capital’s $50,000,000 total aggregate purchase commitment under the Purchase Agreement. However, because the market prices of our
Common Stock may fluctuate from time to time after the date of this prospectus and, as a result, the actual purchase prices to be paid
by B. Riley Principal Capital for shares of our Common Stock that we direct it to purchase under the Purchase Agreement, if any, also
may fluctuate, perhaps significantly, based on the market prices of our Common Stock.
Accordingly, if it becomes necessary for us to issue and sell to B.
Riley Principal Capital under the Purchase Agreement more than the 25,210,084 shares being registered for resale under the registration
statement that includes this prospectus in order to receive aggregate gross proceeds equal to $50 million under the Purchase Agreement,
we must first (i) obtain stockholder approval to issue shares of Common Stock in excess of the Exchange Cap under the Purchase Agreement
in accordance with applicable Nasdaq rules and (ii) file with the SEC one or more additional registration statements to register under
the Securities Act the resale by B. Riley Principal Capital of any such additional shares of our Common Stock we wish to sell from time
to time under the Purchase Agreement, which the SEC must declare effective, in each case before we may elect to sell any additional shares
of our Common Stock to B. Riley Principal Capital under the Purchase Agreement. Any issuance and sale by us under the Purchase Agreement
of a substantial amount of shares of Common Stock in addition to the 25,210,084 shares of Common Stock being registered for resale by
B. Riley Principal Capital under this prospectus could cause additional substantial dilution to our stockholders. The number of shares
of our common stock ultimately offered for sale by B. Riley Principal Capital is dependent upon the number of shares of Common Stock,
if any, we ultimately elect to sell to B. Riley Principal Capital under the Purchase Agreement.
Investors
who buy shares at different times will likely pay different prices.
Pursuant
to the Purchase Agreement, we will have discretion, subject to market demand, to vary the timing, prices, and numbers of shares sold
to B. Riley Principal Capital. If and when we do elect to sell shares of our Common Stock to B. Riley Principal Capital pursuant to the
Purchase Agreement, after B. Riley Principal Capital has acquired such shares, B. Riley Principal Capital may resell all, some or none
of such shares at any time or from time to time in its discretion and at different prices. As a result, investors who purchase shares
from B. Riley Principal Capital in this offering at different times will likely pay different prices for those shares, and so may experience
different levels of dilution and in some cases substantial dilution and different outcomes in their investment results. Investors may
experience a decline in the value of the shares they purchase from B. Riley Principal Capital in this offering as a result of future
sales made by us to B. Riley Principal Capital at prices lower than the prices such investors paid for their shares in this offering.
In addition, if we sell a substantial number of shares to B. Riley Principal Capital under the Purchase Agreement, or if investors expect
that we will do so, the actual sales of shares or the mere existence of our arrangement with B. Riley Principal Capital may make it more
difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise wish to effect
such sales.
Our
management team may invest or spend the proceeds of this offering in ways with which you may not agree or in ways which may no yield
a significant return.
Our
management will have broad discretion over the use of proceeds from sales of our Common Stock made pursuant to the Purchase Agreement,
including for any of the purposes described in the section entitled “Use of Proceeds,” and you will not have the opportunity,
as part of your investment decision, to assess whether the proceeds are being used appropriately. However, we have not determined the
specific allocation of any net proceeds among these potential uses, and the ultimate use of the net proceeds may vary from the currently
intended uses. The net proceeds may be used for corporate purposes that do not increase our operating results or enhance the value of
our Common Stock.
Risks
Related to our Common Stock
The
liquidity of the Common Stock is uncertain; the limited trading volume of the Common Stock may depress the price of such stock or cause
it to fluctuate significantly.
Although
the Common Stock is listed on Nasdaq, there has been a limited public market for the Common Stock and there can be no assurance that
a more active trading market for the Common Stock will develop. As a result, you may not be able to sell your shares of Common Stock
in short time periods, or possibly at all. The absence of an active trading market may cause the price per share of the Common Stock
to fluctuate significantly.
Substantial
resales or future issuances of our Common Stock could depress our stock price.
The
market price for the Common Stock could decline, perhaps significantly, as a result of resales or issuances of a large number of shares
of the Common Stock in the public market or even the perception that such resales or issuances could occur, including resales of the
shares being registered hereunder pursuant to the registration statement of which this prospectus is a part. In addition, we have issued
a substantial number of outstanding options, warrants, and other securities convertible into shares of Common Stock that may be exercised
in the future. Certain holders of our securities, including with respect to shares of Common Stock issuable in exchange for warrants,
have demand and piggy-back registration rights. These factors could also make it more difficult for us to raise funds through future
offerings of our equity securities.
You
will incur substantial dilution as a result of certain future equity issuances.
We
have a substantial number of options, warrants, and other securities currently outstanding which may be immediately exercised or converted
into shares of Common Stock. To the extent that these options, warrants, or similar securities are exercised or converted, or to the
extent we issue additional shares of Common Stock in the future, as the case may be, there will be further dilution to holders of shares
of the Common Stock.
Our
issuance of preferred stock could adversely affect holders of Common Stock.
Our
board of directors is authorized to issue series of preferred stock without any action on the part of our holders of Common Stock. Our
board of directors also has the power, without stockholder approval, to set the terms of any such series of preferred stock that may
be issued, including voting rights, dividend rights, preferences over our Common Stock with respect to dividends or if we liquidate,
dissolve or wind up our business and other terms. If we issue preferred stock in the future that has preference over our Common Stock
with respect to the payment of dividends or upon our liquidation, dissolution or winding up, or if we issue preferred stock with voting
rights that dilute the voting power of our Common Stock, the rights of holders of our Common Stock or the price of our Common Stock could
be adversely affected.
Our
stock price has been volatile and may continue to be volatile in the future; this volatility may affect the price at which you could
sell our Common Stock.
The
trading price of the Common Stock has been volatile and may continue to be volatile in response to various factors, some of which are
beyond our control. Any of the factors listed below could have a material adverse effect on an investment in the Common Stock:
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actual or anticipated fluctuations in our quarterly
financial results or the quarterly financial results of companies perceived to be similar to us;
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changes in the market’s expectations about our
operating results;
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success of competitors;
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our operating results failing to meet the expectation
of securities analysts or investors in a particular period;
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changes in financial estimates and recommendations
by securities analysts concerning us, the market for digital and physical content, content distribution and entertainment in general;
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operating and stock price performance of other companies
that investors deem comparable to us;
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our ability to market new and enhanced products on
a timely basis;
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changes in laws and regulations affecting our business
or our industry;
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commencement of, or involvement in, litigation involving
us;
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changes in our capital structure, such as future issuances
of securities or the incurrence of additional debt;
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the volume of shares of the Common Stock available
for public sale;
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any major change in our board of directors or management;
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sales of substantial amounts of Common Stock by our
directors, executive officers or significant stockholders or the perception that such sales could occur; and
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general economic and political conditions such as recessions,
interest rates, international currency fluctuations, global pandemics and acts of war or terrorism.
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Broad
market and industry factors may materially harm the market price of the Common Stock irrespective of our operating performance. The stock
market in general, and Nasdaq in particular, have experienced price and volume fluctuations that have often been unrelated or disproportionate
to the operating performance of the particular companies affected. The trading prices and valuations of these stocks, and of the Common
Stock, may not be predictable. A loss of investor confidence in the market for retail stocks or the stocks of other companies that investors
perceive to be similar to us could depress our stock price regardless of our business, prospects, financial conditions or results of
operations. A decline in the market price of the Common Stock also could adversely affect our ability to issue additional securities
and our ability to obtain additional financing in the future.
Anti-takeover
provisions contained in our certificate of incorporation and bylaws, as well as provisions of Delaware law, could impair a takeover attempt.
Our
fifth amended and restated certificate of incorporation and bylaws, as amended, contain provisions that could have the effect of delaying
or preventing changes in control or changes in our management without the consent of our board of directors. These provisions include:
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no cumulative voting in the election
of directors, which limits the ability of minority stockholders to elect director candidates;
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the exclusive right of our board of directors to elect
a director to fill a vacancy created by the expansion of the board of directors or the resignation, death, or removal of a director,
which prevents stockholders from being able to fill vacancies on our board of directors;
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the ability of our board of directors
to determine to issue shares of preferred stock and to determine the price and other terms of those shares, including preferences
and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer;
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the requirement that an annual meeting of stockholders
may be called only by the board of directors, which may delay the ability of our stockholders to force consideration of a proposal
or to take action, including the removal of directors;
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limiting the liability of, and providing indemnification
to, our directors and officers;
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controlling the procedures for the conduct and scheduling
of stockholder meetings; and
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providing that directors may be removed prior to the
expiration of their terms by the Board of Directors only for cause.
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These
provisions, alone or together, could delay hostile takeovers and changes in control of the Company or changes in our management.
As
a Delaware corporation, we are also subject to provisions of Delaware law, including Section 203 of the Delaware General Corporation
Law (the “DGCL”), which prevents some stockholders holding more than 15% of our outstanding Common Stock from engaging in
certain business combinations without approval of the holders of substantially all of our outstanding Common Stock. Any provision of
our certificate of incorporation or bylaws or Delaware law that has the effect of delaying or deterring a change in control could limit
the opportunity for our stockholders to receive a premium for their shares of our Common Stock, and could also affect the price that
some investors are willing to pay for the Common Stock.
We
may not be able to maintain the listing of our Common Stock on Nasdaq, which may adversely affect the ability of purchasers of Common
Stock in this offering to resell their securities in the secondary market.
The
Common Stock is presently listed on Nasdaq. If the Company is unable to meet the continued listing criteria of Nasdaq and the Common
Stock became delisted, trading of the Common Stock could thereafter be conducted in the over-the-counter markets in the OTC Pink, also
known as “pink sheets” or, if available, on another OTC trading platform. We cannot assure you that we will meet the criteria
for continued listing, in which case the Common Stock could become delisted. Any such delisting could harm our ability to raise capital
through alternative financing sources on terms acceptable to us, or at all, and may result in the loss of confidence in our financial
stability by suppliers, customers and employees. Investors would likely find it more difficult to dispose of, or to obtain accurate market
quotations for, the Common Stock, as the liquidity that Nasdaq provides would no longer be available to investors. In addition, the failure
of our Common Stock to continue to be listed on the Nasdaq could adversely impact the market price for the Common Stock and our other
securities, and we could face a lengthy process to re-list the Common Stock, if we are able to re-list the Common Stock.
We
have no present intention of paying dividends on our Common Stock.
We
have never paid any cash dividends on our Common Stock and have no present plans to do so. As a result, you may not receive any return
on an investment in our Common Stock unless you sell the shares for a price greater than that which you paid for them.
Our
ability to raise capital in the future may be limited, which could make us unable to fund our capital requirements.
Our
business and operations may consume resources faster than we anticipate, or we may require additional funds to pursue acquisition or
expansion opportunities. In the future, we may need to raise additional funds through the issuance of new equity securities, debt or
a combination of both. Additional financing may not be available on favorable terms or at all. If adequate funds are not available on
acceptable terms, we may be unable to fund our capital requirements. If we issue new debt securities, the debt holders would have rights
senior to common stock holders to make claims on our assets, and the terms of any debt could restrict our operations, including our ability
to pay dividends on our Common Stock. Because our decision to issue securities in any future offering will depend on market conditions
and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, our stockholders
bear the risk of our future securities offerings reducing the market price of our Common Stock, diluting their interest or being subject
to rights and preferences senior to their own.
THE
COMMITTED EQUITY FINANCING
On October 12, 2021, we entered into the
Purchase Agreement and the Registration Rights Agreement with B. Riley Principal Capital. Pursuant to the Purchase Agreement, we
have the right to sell to B. Riley Principal Capital up to $50 million of shares of our Common Stock, subject to certain limitations
and conditions set forth in the Purchase Agreement, from time to time during the term of the Purchase Agreement. Sales of Common
Stock pursuant to the Purchase Agreement, and the timing of any sales, are solely at our option, and we are under no obligation to
sell any securities to B. Riley Principal Capital under the Purchase Agreement. In accordance with our obligations under the
Registration Rights Agreement, we have filed the registration statement that includes this prospectus with the SEC to register under
the Securities Act the resale by B. Riley Principal Capital of up to 25,210,084 shares of Common Stock, consisting of 210,084
Commitment Shares that we issued to B. Riley Principal Capital as payment of a commitment fee for its commitment to purchase shares
of Common Stock at our election under to the Purchase Agreement, and up to 25,000,000 shares of Common Stock that we may elect, in
our sole discretion, to issue and sell to B. Riley Principal Capital, from time to time from and after the Commencement Date under
the Purchase Agreement.
We
do not have the right to commence any sales of our Common Stock to B. Riley Principal Capital under the Purchase Agreement until the
Commencement Date, which is the date on which all of the conditions to B. Riley Principal Capital’s purchase obligation set forth
in the Purchase Agreement have been satisfied, including that the registration statement that includes this prospectus be declared effective
by the SEC and the final form of this prospectus is filed with the SEC. From and after the Commencement Date, we will have the right,
but not the obligation, from time to time at our sole discretion over the 24-month period commencing on the Commencement Date, to direct
B. Riley Principal Capital to purchase up to a specified maximum amount of shares of Common Stock as set forth in the Purchase Agreement
by delivering written notice to B. Riley Principal Capital between 6:00 a.m. and 9:00 a.m., New York City time, on any trading day, so
long as (i) the closing sale price of our Common Stock on the trading day immediately prior to such trading day is not less than
$0.50 and (ii) all shares of Common Stock subject to all prior purchases by B. Riley Principal Capital under the Purchase Agreement
have theretofore been received by B. Riley Principal Capital electronically as set forth in the Purchase Agreement.
From
and after Commencement, the Company will control the timing and amount of any sales of Common Stock to B. Riley Principal Capital. Actual
sales of shares of our Common Stock to B. Riley Principal Capital under the Purchase Agreement will depend on a variety of factors to
be determined by us from time to time, including, among other things, market conditions, the trading price of our Common Stock and determinations
by us as to the appropriate sources of funding for our company and its operations.
Under
the applicable Nasdaq rules, in no event may we issue to B. Riley Principal Capital under the Purchase Agreement more than the
Exchange Cap of 33,805,110 shares of Common Stock, which number of shares is equal to 19.99% of the shares of the Common Stock
outstanding immediately prior to the execution of the Purchase Agreement, unless (i) we obtain stockholder approval to issue shares
of Common Stock in excess of the Exchange Cap in accordance with applicable Nasdaq rules or (ii) the average price per share paid by
B. Riley Principal Capital for all of the shares of Common Stock that we direct B. Riley Principal Capital to purchase from us
pursuant to the Purchase Agreement, if any, equals or exceeds $2.3949 per share (representing the lower of the official closing
price of our common stock on Nasdaq on the trading day immediately preceding the date of the Purchase Agreement and the average
official closing price of our common stock on Nasdaq for the five consecutive trading days ending on the trading day immediately
preceding the date of the Purchase Agreement, as adjusted pursuant to applicable Nasdaq rules). Moreover, we may not issue or sell
any shares of Common Stock to B. Riley Principal Capital under the Purchase Agreement which, when aggregated with all other shares
of Common Stock then beneficially owned by B. Riley Principal Capital and its affiliates (as calculated pursuant to
Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in B. Riley Principal Capital
beneficially owning shares of Common Stock in excess of the 4.99% Beneficial Ownership Cap.
Neither
we nor B. Riley Principal Capital may assign or transfer any of our respective rights and obligations under the Purchase Agreement or
the Registration Rights Agreement, and no provision of the Purchase Agreement or the Registration Rights Agreement may be modified or
waived by the parties.
The
net proceeds from sales, if any, under the Purchase Agreement, will depend on the frequency and prices at which we sell shares of Common
Stock to B. Riley Principal Capital. To the extent the Company sells shares under the Purchase Agreement, we currently plan to use any
proceeds therefrom for working capital and general corporate purposes, which may include acquisitions with respect to our current strategy
of acquiring content for our streaming and OTT channel business.
As
consideration for B. Riley Principal Capital’s commitment to purchase shares of Common Stock at our direction upon the terms
and subject to the conditions set forth in the Purchase Agreement, upon execution of the Purchase Agreement, we issued 210,084
Commitment Shares to B. Riley Principal Capital.
The
Purchase Agreement and the Registration Rights Agreement contain customary representations, warranties, conditions and indemnification
obligations of the parties. The representations, warranties and covenants contained in such agreements were made only for purposes of
such agreements and as of specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations
agreed upon by the contracting parties.
Purchase
of Common Stock Under the Purchase Agreement
From
and after the Commencement Date, we will have the right, but not the obligation, from time to time at our sole discretion over the 24-month
period commencing on the Commencement Date, to direct B. Riley Principal Capital to purchase up to a specified maximum amount of shares
of Common Stock as set forth in the Purchase Agreement by delivering written notice to B. Riley Principal Capital between 6:00 a.m. and
9:00 a.m., New York City time, or a Purchase Notice, on any trading day, so long as:
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the
closing sale price of our Common Stock on the trading day immediately prior to the applicable
Purchase Date is not less than $0.50; and
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all
shares of Common Stock subject to all prior purchases by B. Riley Principal Capital under
the Purchase Agreement have theretofore been received by B. Riley Principal Capital electronically
as set forth in the Purchase Agreement.
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The
maximum number of shares of Common Stock that B. Riley Principal Capital is required to purchase in any single Purchase under the Purchase
Agreement is equal to the lesser of:
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Such
number of shares of Common Stock which, when aggregated with all other shares of Common Stock then beneficially owned by B. Riley
Principal Capital and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated
thereunder), would cause B. Riley Principal Capital’s beneficial ownership of Common Stock to equal (or approximate as
closely as possible without exceeding) the Beneficial Ownership Cap; and
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30%
of the daily trading volume in the Common Stock on Nasdaq (or, in the event the Common Stock
is then listed on an “Eligible Market” as defined under the Purchase Agreement,
on such Eligible Market) on the applicable Purchase Date for such Purchase (subject to equitable
adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse
stock split or other similar transaction occurring during the applicable Purchase Valuation
Period for such Purchase).
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The per share purchase price for the shares
of Common Stock that we may elect to sell to B. Riley Principal Capital in a Purchase pursuant to the Purchase Agreement, if any, will
be determined by reference to the VWAP for the applicable Purchase Valuation Period on the applicable Purchase Date, less a fixed 5% discount.
There is no upper limit on the price per share that B. Riley Principal Capital could be obligated to pay for the Common Stock we may elect
to sell to B. Riley Principal Capital in any Purchase under the Purchase Agreement.
At
or prior to 5:30 p.m., New York City time, on the applicable Purchase Date for a Purchase, B. Riley Principal Capital will provide us
with a written confirmation for such Purchase setting forth the applicable purchase price (both on a per share basis and the total aggregate
purchase price) to be paid by B. Riley Principal Capital for the shares of Common Stock purchased by B. Riley Principal Capital in such
Purchase.
The
payment for, against delivery of, shares of Common Stock purchased by B. Riley Principal Capital in a Purchase under the Purchase Agreement
will be fully settled within two trading days immediately following the applicable Purchase Date for such Purchase, as set forth in the
Purchase Agreement.
Conditions
to Commencement and Each Purchase
B. Riley Principal Capital’s obligation to accept Purchase Notices
that are timely delivered by us under the Purchase Agreement and to purchase shares of our Common Stock in Purchases under the Purchase
Agreement, are subject to (i) the initial satisfaction, at the Commencement, and (ii) the satisfaction, at the applicable “Purchase
Commencement Time” (as such term is defined in the Purchase Agreement) on the applicable Purchase Date for each Purchase after the
Commencement Date, of the conditions precedent thereto set forth in the Purchase Agreement, all of which are entirely outside of B. Riley
Principal Capital’s control, which conditions include the following:
|
●
|
the
accuracy in all material respects of the representations and warranties of the Company included
in the Purchase Agreement;
|
|
●
|
the
Company having performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by the Purchase Agreement to be performed, satisfied or
complied with by the Company;
|
|
●
|
the
registration statement that includes this prospectus (and any one or more additional registration
statements filed with the SEC that include shares of Common Stock that may be issued and
sold by the Company to B. Riley Principal Capital under the Purchase Agreement) having been
declared effective under the Securities Act by the SEC, and B. Riley Principal Capital being
able to utilize this prospectus (and the prospectus included in any one or more additional
registration statements filed with the SEC under the Registration Rights Agreement) to resell
all of the shares of Common Stock included in this prospectus (and included in any such additional
prospectuses);
|
|
●
|
the
SEC shall not have issued any stop order suspending the effectiveness of the registration
statement that includes this prospectus (or any one or more additional registration statements
filed with the SEC that include shares of Common Stock that may be issued and sold by the
Company to B. Riley Principal Capital under the Purchase Agreement) or prohibiting or suspending
the use of this prospectus (or the prospectus included in any one or more additional registration
statements filed with the SEC under the Registration Rights Agreement), and the absence of
any suspension of qualification or exemption from qualification of the Common Stock for offering
or sale in any jurisdiction;
|
|
●
|
there
shall not have occurred any event and there shall not exist any condition or state of facts,
which makes any statement of a material fact made in the registration statement that includes
this prospectus (or in any one or more additional registration statements filed with the
SEC that include shares of Common Stock that may be issued and sold by the Company to B.
Riley Principal Capital under the Purchase Agreement) untrue or which requires the making
of any additions to or changes to the statements contained therein in order to state a material
fact required by the Securities Act to be stated therein or necessary in order to make the
statements then made therein (in the case of this prospectus or the prospectus included in
any one or more additional registration statements filed with the SEC under the Registration
Rights Agreement, in the light of the circumstances under which they were made) not misleading;
|
|
●
|
this
prospectus, in final form, shall have been filed with the SEC under the Securities Act prior
to Commencement, and all reports, schedules, registrations, forms, statements, information
and other documents required to have been filed by the Company with the SEC pursuant to the
reporting requirements of the Exchange Act shall have been filed with the SEC;
|
|
●
|
trading
in the Common Stock shall not have been suspended by the SEC or the Nasdaq, the Company shall
not have received any final and non-appealable notice that the listing or quotation of the
Common Stock on the Nasdaq shall be terminated on a date certain (unless, prior to such date,
the Common Stock is listed or quoted on any other Eligible Market, as such term is defined
in the Purchase Agreement), and there shall be no suspension of, or restriction on, accepting
additional deposits of the Common Stock, electronic trading or book-entry services by DTC
with respect to the Common Stock;
|
|
●
|
the
Company shall have complied with all applicable federal, state and local governmental laws,
rules, regulations and ordinances in connection with the execution, delivery and performance
of the Purchase Agreement and the Registration Rights Agreement;
|
|
●
|
the
absence of any statute, regulation, order, decree, writ, ruling or injunction by any court
or governmental authority of competent jurisdiction which prohibits the consummation of or
that would materially modify or delay any of the transactions contemplated by the Purchase
Agreement or the Registration Rights Agreement;
|
|
●
|
the
absence of any action, suit or proceeding before any arbitrator or any court or governmental
authority seeking to restrain, prevent or change the transactions contemplated by the Purchase
Agreement or the Registration Rights Agreement, or seeking material damages in connection
with such transactions;
|
|
●
|
all
of the shares of Common Stock that may be issued pursuant to the Purchase Agreement shall
have been approved for listing or quotation on Nasdaq (or if the Common Stock is not then
listed on Nasdaq, on any Eligible Market), subject only to notice of issuance;
|
|
●
|
no
condition, occurrence, state of facts or event constituting a Material Adverse Effect (as
such term is defined in the Purchase Agreement) shall have occurred and be continuing;
|
|
●
|
the
absence of any bankruptcy proceeding against the Company commenced by a third party, and
the Company shall not have commenced a voluntary bankruptcy proceeding, consented to the
entry of an order for relief against it in an involuntary bankruptcy case, consented to the
appointment of a custodian of the Company or for all or substantially all of its property
in any bankruptcy proceeding, or made a general assignment for the benefit of its creditors;
and
|
|
●
|
the
receipt by B. Riley Principal Capital of the legal opinions and negative assurances, and
bring-down legal opinions and negative assurances as required under the Purchase Agreement.
|
Termination
of the Purchase Agreement
Unless
earlier terminated as provided in the Purchase Agreement, the Purchase Agreement will terminate automatically on the earliest to occur
of:
|
●
|
the first day of the
month next following the 24-month anniversary of the Commencement Date;
|
|
●
|
the
date on which B. Riley Principal Capital shall have purchased shares of Common Stock under
the Purchase Agreement for an aggregate gross purchase price equal to $50 million;
|
|
●
|
the
date on which the Common Stock shall have failed to be listed or quoted on The Nasdaq Global Market or any
other Eligible Market; and
|
|
●
|
the date on which the Company commences a voluntary bankruptcy
case or any third party commences a bankruptcy proceeding against the Company, a custodian is appointed for the Company in a bankruptcy
proceeding for all or substantially all of its property, or the Company makes a general assignment for the benefit of its creditors
|
We have the right to terminate the Purchase Agreement at any time
after Commencement, at no cost or penalty, upon ten (10) trading days’ prior written notice to B. Riley Principal Capital. We and
B. Riley Principal Capital may also terminate the Purchase Agreement at any time by mutual written consent.
B.
Riley Principal Capital also has the right to terminate the Purchase Agreement upon ten (10) trading days’ prior written notice
to us, but only upon the occurrence of certain events, including:
|
●
|
the
occurrence of a Material Adverse Effect (as such term is defined in the Purchase Agreement);
|
|
●
|
the
occurrence of a Fundamental Transaction (as such term defined in the Purchase Agreement)
involving our company;
|
|
●
|
if
we are in breach or default in any material respect of any of our covenants and agreements
in the Purchase Agreement or in the Registration Rights Agreement, and, if such breach or
default is capable of being cured, such breach or default is not cured within ten (10) trading
days after notice of such breach or default is delivered to us;
|
|
●
|
the
effectiveness of the registration statement that includes this prospectus or any additional
registration statement we file with the SEC pursuant to the Registration Rights Agreement
lapses for any reason (including the issuance of a stop order by the SEC), or this prospectus
or the prospectus included in any additional registration statement we file with the SEC
pursuant to the Registration Rights Agreement otherwise becomes unavailable to B. Riley Principal
Capital for the resale of all of the shares of Common Stock included therein, and such lapse
or unavailability continues for a period of twenty (20) consecutive trading days or for more
than an aggregate of sixty (60) trading days in any 365-day period, other than due to acts
of B. Riley Principal Capital; or
|
|
●
|
trading
in the Common Stock on The Nasdaq Global Select Market (or if the Common Stock is then listed
on an Eligible Market, trading in the Common Stock on such Eligible Market) has been suspended
for a period of three (3) consecutive trading days.
|
No
termination of the Purchase Agreement by us or by B. Riley Principal Capital will become effective prior to the second (2nd)
trading day immediately following the date on which any pending Purchase has been fully settled in accordance with the terms and conditions
of the Purchase Agreement, and will not affect any of our respective rights and obligations under the Purchase Agreement with respect
to any pending Purchase, and both we and B. Riley Principal Capital have agreed to complete our respective obligations with respect to
any such pending Purchase under the Purchase Agreement. Furthermore, no termination of the Purchase Agreement will affect the Registration
Rights Agreement, which will survive any termination of the Purchase Agreement.
No
Short-Selling or Hedging by B. Riley Principal Capital
B. Riley Principal Capital has agreed that none of B. Riley Principal Capital, its officers, its sole member or any entity managed or
controlled by B. Riley Principal Capital or its sole member will engage in or effect, directly or indirectly, for its own account or for
the account of any other of such persons or entities, any (i) “short sale” (as such term is defined in Rule 200 of Regulation
SHO of the Exchange Act) of the Common Stock or (ii) hedging transaction, which establishes a net short position with respect to
the Common Stock, during the term of the Purchase Agreement.
Prohibition
on Variable Rate Transactions
Subject
to specified exceptions included in the Purchase Agreement, we are limited in our ability to enter into specified “Variable Rate
Transactions” (as such term is defined in the Purchase Agreement) during the term of the Purchase Agreement. Such transactions
include, among others, the issuance of convertible securities with a conversion or exercise price that is based upon or varies with the
trading price of our Common Stock after the date of issuance, or our entry into any agreement for an “equity line of credit”
(other than with B. Riley Principal Capital), whereby we may sell Common Stock at a future determined price.
Effect
of Sales of our Common Stock under the Purchase Agreement on our Stockholders
All
shares of Common Stock that may be issued or sold by us to B. Riley Principal Capital under the Purchase Agreement that are being registered
under the Securities Act for resale by B. Riley Principal Capital in this offering are expected to be freely tradable. The shares of
Common Stock being registered for resale in this offering may be issued and sold by us to B. Riley Principal Capital from time to time
at our discretion over a period of up to 24 months commencing on the Commencement Date. The resale by B. Riley Principal Capital of a
significant amount of shares registered for resale in this offering at any given time, or the perception that these sales may occur,
could cause the market price of our Common Stock to decline and to be highly volatile. Sales of our Common Stock, if any, to B. Riley
Principal Capital under the Purchase Agreement will depend upon market conditions and other factors to be determined by us. We may ultimately
decide to sell to B. Riley Principal Capital all, some or none of the shares of our Common Stock that may be available for us to sell
to B. Riley Principal Capital pursuant to the Purchase Agreement.
If
and when we do elect to sell shares of our Common Stock to B. Riley Principal Capital pursuant to the Purchase Agreement, after B. Riley
Principal Capital has acquired such shares, B. Riley Principal Capital may resell all, some or none of such shares at any time or from
time to time in its discretion and at different prices. As a result, investors who purchase shares from B. Riley Principal Capital in
this offering at different times will likely pay different prices for those shares, and so may experience different levels of dilution
and in some cases substantial dilution and different outcomes in their investment results. Investors may experience a decline in the
value of the shares they purchase from B. Riley Principal Capital in this offering as a result of future sales made by us to B. Riley
Principal Capital at prices lower than the prices such investors paid for their shares in this offering. In addition, if we sell a substantial
number of shares to B. Riley Principal Capital under the Purchase Agreement, or if investors expect that we will do so, the actual sales
of shares or the mere existence of our arrangement with B. Riley Principal Capital may make it more difficult for us to sell equity or
equity-related securities in the future at a time and at a price that we might otherwise wish to effect such sales.
Because the purchase price per share to be paid
by B. Riley Principal Capital for the shares of Common Stock that we may elect to sell to B. Riley Principal Capital under the
Purchase Agreement, if any, will fluctuate based on the market prices of our Common Stock during the applicable Purchase Valuation
Period for each Purchase made pursuant to the Purchase Agreement, if any, as of the date of this prospectus it is not possible for
us to predict the number of shares of Common Stock that we will sell to B. Riley Principal Capital under the Purchase Agreement, the
actual purchase price per share to be paid by B. Riley Principal Capital for those shares, or the actual gross proceeds to be raised
by us from those sales, if any. As of October 12, 2021, there were 169,320,196 shares of our Common Stock outstanding, of which
145,132,168 shares were held by non-affiliates. If all of the 25,210,084 shares offered for resale by B. Riley Principal Capital
under this prospectus were issued and outstanding as of October 12, 2021, such shares would represent approximately 12.9% of the
total number of shares of our Common Stock outstanding and approximately 14.7% of the total number of outstanding shares held by
non-affiliates, in each case as of October 12, 2021.
Although the Purchase Agreement provides that we may, in our
discretion, from time to time after the date of this prospectus and during the term of the Purchase Agreement, direct B. Riley
Principal Capital to purchase shares of our Common Stock from us in one or more Purchases under the Purchase Agreement, for a
maximum aggregate purchase price of up to $50,000,000, only 25,210,084 shares of Common Stock (210,084 of which represent the
Commitment Shares we issued to B. Riley Principal Capital upon signing the Purchase Agreement as payment of a commitment fee for B.
Riley Principal Capital’s obligation to purchase shares of our Common Stock under the Purchase Agreement) are being registered
for resale under the registration statement that includes this prospectus. Assuming all of such 25,000,000 shares were sold to B.
Riley Securities at a 5% discount to the last closing sale price of our Common Stock as reported on Nasdaq on October 11, 2021, or
approximately $2.26 per share, such number of shares would be sufficient to enable us to receive aggregate gross proceeds from the
sale of such shares to B. Riley Principal Capital equal to B. Riley Principal Capital’s $50,000,000 total aggregate purchase
commitment under the Purchase Agreement. However, because the market prices of our Common Stock may fluctuate from time to time
after the date of this prospectus and, as a result, the actual purchase prices to be paid by B. Riley Principal Capital for shares
of our Common Stock that we direct it to purchase under the Purchase Agreement, if any, also may fluctuate because they will be
based on such fluctuating market prices of our Common Stock, it is possible that we may need to issue and sell more than the number
of shares being registered for resale under this prospectus to B. Riley Principal Capital under the Purchase Agreement in order to
receive aggregate gross proceeds equal to B. Riley Principal Capital’s $50,000,000 total aggregate purchase commitment under
the Purchase Agreement.
If it becomes necessary for us to issue and sell to B. Riley Principal
Capital under the Purchase Agreement more shares than are being registered for resale under this prospectus
in order to receive aggregate gross proceeds equal to $50 million under the Purchase Agreement, we must first (i) obtain stockholder approval
to issue shares of Common Stock in excess of the Exchange Cap under the Purchase Agreement in accordance with applicable Nasdaq rules
and (ii) file with the SEC one or more additional registration statements to register under the Securities Act the resale by B. Riley
Principal Capital of any such additional shares of our Common Stock we wish to sell from time to time under the Purchase Agreement, which
the SEC must declare effective, in each case before we may elect to sell any additional shares of our Common Stock to B. Riley Principal
Capital under the Purchase Agreement. The number of shares of our Common Stock ultimately offered for sale by B. Riley Principal Capital
is dependent upon the number of shares of Common Stock, if any, we ultimately sell to B. Riley Principal Capital under the Purchase Agreement.
The issuance of our Common Stock to B. Riley Principal Capital pursuant
to the Purchase Agreement will not affect the rights or privileges of our existing stockholders, except that the economic and voting
interests of each of our existing stockholders will be diluted. Although the number of shares of our Common Stock that our existing stockholders
own will not decrease, the shares of our Common Stock owned by our existing stockholders will represent a smaller percentage of our total
outstanding shares of our Common Stock after any such issuance.
The following table sets forth the amount of gross proceeds we would
receive from B. Riley Principal Capital from our sale of shares of Common Stock to B. Riley Principal Capital under the Purchase Agreement
at varying purchase prices:
Assumed Average Purchase Price Per Share
|
|
|
Number of Registered Shares to be Issued if Full
Purchase (1)
|
|
|
Percentage of Outstanding Shares After Giving Effect
to the Issuance to B. Riley Principal Capital (2)
|
|
|
Gross Proceeds from the Sale of Shares to B. Riley
Principal Capital Under the Purchase Agreement
|
|
$
|
3.00
|
|
|
|
25,000,000
|
|
|
|
12.9
|
%
|
|
$
|
75,250,000
|
|
$
|
2.75
|
|
|
|
25,000,000
|
|
|
|
12.9
|
%
|
|
$
|
68,750,000
|
|
$
|
2.38
|
(3)
|
|
|
25,000,000
|
|
|
|
12.9
|
%
|
|
$
|
59,500,000
|
|
$
|
2.25
|
|
|
|
25,000,000
|
|
|
|
12.9
|
%
|
|
$
|
56,250,000
|
|
$
|
2.00
|
|
|
|
25,000,000
|
|
|
|
12.9
|
%
|
|
$
|
50,000,000
|
|
|
(1)
|
Does not include the 210,084 Commitment Shares that we issued
to B. Riley Principal Capital as consideration for its commitment to purchase shares of Common Stock under the Agreement. The number
of shares of Common Stock offered by this prospectus may not cover all the shares we ultimately sell to the selling stockholder under
the Purchase Agreement, depending on the purchase price per share. We have included in this column only those shares being offered for
resale by the selling stockholder under this prospectus (excluding the 210,084 Commitment Shares), without regard for the Beneficial
Ownership Cap. The assumed average purchase prices are solely for illustration and are not intended to be estimates or predictions of
future stock performance.
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|
(2)
|
The denominator is based on 169,320,196 shares outstanding as of October 12, 2021 (which includes the
210,084 Commitment Shares we issued to B. Riley Principal Capital on October 12, 2021), adjusted to include the issuance of the
number of shares set forth in the second column that we would have sold to B. Riley Principal Capital, assuming the average purchase
price in the first column. The numerator is based on the number of shares of Common Stock set forth in the second column.
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|
(3)
|
The closing sale price of our Common Stock on Nasdaq on October
11, 2021.
|
USE OF PROCEEDS
We will receive no proceeds from the sale of any of or all of the
shares being offered by the selling stockholder under this prospectus. We may receive up to $50 million aggregate gross proceeds under
the Purchase Agreement from any sales we make to B. Riley Principal Capital pursuant to the Purchase Agreement. We estimate that the
net proceeds to us from the sale of our Common Stock to B. Riley Principal Capital pursuant to the Purchase Agreement will be up to $47,300,000
over an approximately 24-month period, assuming that we sell the full amount of our Common Stock that we have the right, but not the
obligation, to sell to B. Riley Principal Capital under the Purchase Agreement, and after estimated fees and expenses. See “Plan
of Distribution” elsewhere in this prospectus for more information.
We expect to use any proceeds that we receive under the Purchase Agreement
for working capital and general corporate purposes, which may include acquisitions with respect to our current strategy of acquiring
content for our streaming and OTT channel business.
DIVIDEND POLICY
We have never paid any cash dividends on our Common Stock and have
no present plans to do so. Any future payment of dividends on our Common Stock will be in the sole discretion of our board of directors.
SELLING STOCKHOLDER
This
prospectus relates to the offer and sale by B. Riley Principal Capital of up to 25,210,084 Shares that have been and may be issued
by us to B. Riley Principal Capital under the Purchase Agreement. For additional information regarding the Shares to be offered by
B. Riley Principal Capital included in this prospectus, see the section titled “Committed Equity Financing” above. We
are registering the Shares included in this prospectus pursuant to the provisions of the Registration Rights Agreement we entered
into with B. Riley Principal Capital on October 12, 2021 in order to permit B. Riley Principal Capital to offer the Shares for
resale from time to time. Except for the transactions contemplated by the Purchase Agreement and the Registration Rights Agreement
and as set forth in the section titled “Plan of Distribution” in this prospectus, B. Riley Principal Capital has not had
any material relationship with us within the past three years. As used in this prospectus, the term “selling
stockholder” means B. Riley Principal Capital, LLC.
The table below presents
information regarding the selling stockholder and the Shares that may be resold by the selling stockholder from time to time under this
prospectus. This table is prepared based on information supplied to us by the selling stockholder, and reflects holdings as of October
12, 2021. The number of shares in the column “Maximum Number of Shares of Common Stock to be Offered Pursuant to this Prospectus”
represents all of the Shares being offered for resale by the selling stockholder under this prospectus. The selling stockholder may sell
some, all or none of the Shares being offered for resale in this offering. We do not know how long the selling stockholder will hold
the Shares before selling them, and we know of no existing arrangements between the selling stockholder or any other stockholder, broker,
dealer, underwriter or agent relating to the sale or distribution of the Shares offered by this prospectus.
Beneficial
ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act, and includes shares of
Common Stock with respect to which the selling stockholder has voting and investment power. The percentage of shares of Common Stock
beneficially owned by the selling stockholder prior to the offering shown in the table below is based on an aggregate of 169,320,196
shares of our Common Stock outstanding on October 12, 2021. Because the purchase price to be paid by B. Riley Principal Capital for
shares of Common Stock, if any, that we may elect to sell to the selling stockholder in one or more
Purchases from time to time under the Purchase Agreement will be determined on the applicable Purchase dates for such Purchases, the
actual number of shares of Common Stock that we may sell to the selling stockholder under the Purchase Agreement may be fewer
than the number of shares being offered for resale under this prospectus. The fourth column assumes the resale by the selling
stockholder of all of the shares of Common Stock being offered pursuant to this prospectus.
|
|
Number
of Shares Beneficially
Owned Prior to Offering
|
|
Maximum
Number of Shares which may be offered Pursuant to this
Offering
|
|
|
Number
of Shares Beneficially
Owned
After Offering
|
Name
|
|
Number (a)
|
|
Percent (b)
|
|
|
Number
|
|
|
Number (c)
|
|
Percent (b)
|
|
B. Riley Principal Capital, LLC (d)
|
|
210,084
|
|
|
*
|
|
|
|
25,210,084
|
|
|
0
|
|
|
--
|
|
|
*
|
Represents beneficial ownership of less than 1% of the outstanding
shares of Common Stock.
|
|
(a)
|
Represents the 210,084 shares of Common Stock we issued to B. Riley Principal Capital on October 12,
2021 as Commitment Shares in consideration for entering into the Purchase Agreement with us. In accordance with Rule 13d-3(d) under
the Exchange Act, we have excluded from the number of shares beneficially owned prior to the offering all of the shares that B.
Riley Principal Capital may be required to purchase under the Purchase Agreement, because the issuance of such shares is solely at
our discretion and is subject to conditions contained in the Purchase Agreement, the satisfaction of which are entirely outside of
B. Riley Principal Capital’s control, including the registration statement that includes this prospectus becoming and
remaining effective. Furthermore, the Purchases of Common Stock are subject to certain agreed upon maximum amount limitations set
forth in the Purchase Agreement. Also, the Purchase Agreement prohibits us from issuing and selling any shares of our Common Stock
to B. Riley Principal Capital to the extent such shares, when aggregated with all other shares of our Common Stock then beneficially
owned by B. Riley Principal Capital, would cause B. Riley Principal Capital’s beneficial ownership of our Common Stock to
exceed the 4.99% Beneficial Ownership Cap. The Purchase Agreement also prohibits us from issuing or selling shares of our Common
Stock under the Purchase Agreement in excess of the 19.99% Exchange Cap, unless we obtain stockholder approval to do so, or unless
the average price per share paid by B. Riley Principal Capital for all shares of common stock purchased by B. Riley Principal
Capital under the Purchase Agreement equals or exceeds $2.3949 per share, in which case the Exchange Cap limitation would no longer
apply under applicable Nasdaq rules. Neither the Beneficial Ownership Limitation nor the Exchange Cap (to the extent applicable
under Nasdaq rules) may be amended or waived under the Purchase Agreement.
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|
(b)
|
Applicable percentage ownership is based on 169,320,196 shares
of our Common Stock outstanding as of October 12, 2021.
|
|
(c)
|
Assumes sale of all shares offered pursuant to this prospectus.
|
|
(d)
|
The business address of B. Riley Principal Capital, LLC (“BRPC”)
is 11100 Santa Monica Blvd., Suite 800, Los Angeles, CA 90025. BRPC’s principal business is that of a private investor. Daniel
Shribman and Nick Capuano are the President and Chief Investment Officer, respectively, of BRPC. The sole member of BRPC is B. Riley
Principal Investments, LLC (“BRPI”), which is an indirect subsidiary of B. Riley Financial, Inc. (“BRF”). Mr.
Shribman is the President of BRPI and the Chief Investment Officer of BRF. Mr. Shribman has sole voting power and sole investment power
over securities beneficially owned, directly, by BRPC, and therefore Mr. Shribman may be deemed to beneficially own, indirectly, the
securities beneficially owned, directly, by BRPC. The sole voting and investment powers of Mr. Shribman over securities beneficially
owned directly by BRPC are exercised independently from all other direct and indirect subsidiaries of BRF, and the voting and investment
powers over securities beneficially owned directly or indirectly by all other direct and indirect subsidiaries of BRF are exercised independently
from BRPC. We have been advised that neither BRPI nor BRPC is a member of the Financial Industry Regulatory Authority, or FINRA, or an
independent broker-dealer. The foregoing should not be construed in and of itself as an admission by Mr. Shribman as to beneficial ownership
of the securities beneficially owned, directly, by BRPC.
|
PLAN OF DISTRIBUTION
The Shares offered by
this prospectus are being offered by the selling stockholder, B. Riley Principal Capital, LLC. The Shares may be sold or distributed
from time to time by the selling stockholder directly to one or more purchasers or through brokers, dealers, or underwriters who may
act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at
negotiated prices, or at fixed prices, which may be changed. The sale of the Shares offered by this prospectus
could be effected in one or more of the following methods:
|
●
|
ordinary
brokers’ transactions;
|
|
●
|
transactions
involving cross or block trades;
|
|
●
|
through
brokers, dealers, or underwriters who may act solely as agents;
|
|
●
|
“at
the market” into an existing market for our Common Stock;
|
|
●
|
in
other ways not involving market makers or established business markets, including direct
sales to purchasers or sales effected through agents;
|
|
●
|
in
privately negotiated transactions; or
|
|
●
|
any
combination of the foregoing.
|
In order
to comply with the securities laws of certain states, if applicable, the Shares may be sold only through registered or licensed brokers
or dealers. In addition, in certain states, the Shares may not be sold unless they have been registered or qualified for sale
in the state or an exemption from the state’s registration or qualification requirement is available and complied with.
B. Riley Principal Capital is an “underwriter” within the
meaning of Section 2(a)(11) of the Securities Act.
B. Riley Principal Capital has informed us that it intends to use
one or more registered broker-dealers (one of which is an affiliate of B. Riley Principal Capital) to effectuate all sales, if any, of
our common stock that it may acquire from us pursuant to the Purchase Agreement. Such sales will be made at prices and at terms
then prevailing or at prices related to the then current market price. Each such registered broker-dealer will be an underwriter
within the meaning of Section 2(a)(11) of the Securities Act. B. Riley Principal Capital has informed us that each such broker-dealer
(excluding any broker-dealer that is an affiliate of B. Riley Principal Capital), may receive commissions from B. Riley Principal Capital
for executing such sales for B. Riley Principal Capital and, if so, such commissions will not exceed customary brokerage commissions.
Brokers, dealers, underwriters or agents participating in the distribution
of the Shares offered by this prospectus may receive compensation in the form of commissions, discounts, or concessions from the purchasers,
for whom the broker-dealers may act as agent, of the Shares sold by the selling stockholder through this prospectus. The compensation
paid to any such particular broker-dealer by any such purchasers of Shares sold by the selling stockholder may be less than or in excess
of customary commissions. Neither we nor the selling stockholder can presently estimate the amount of compensation that any agent
will receive from any purchasers of Shares sold by the selling stockholder.
We know of no existing arrangements between the selling stockholder
or any other stockholder, broker, dealer, underwriter or agent relating to the sale or distribution of the shares of our common stock
offered by this prospectus.
We may from time to time file with the SEC one or more supplements
to this prospectus or amendments to the registration statement of which this prospectus forms a part to amend, supplement or update information
contained in this prospectus, including, if and when required under the Securities Act, to disclose certain information relating to a
particular sale of Shares offered by this prospectus by the selling stockholder, including with respect to any compensation paid or payable
by the selling stockholder to any brokers, dealers, underwriters or agents that participate in the distribution of such shares by the
selling stockholder, and any other related information required to be disclosed under the Securities Act.
We will pay the expenses incident to the registration under the Securities
Act of the offer and sale of the Shares covered by this prospectus by the selling stockholder.
As consideration for its irrevocable commitment to purchase our Common
Stock under the Purchase Agreement, we issued to B. Riley Principal Capital 210,084 shares of Common Stock as Commitment Shares upon execution
of the Purchase Agreement and the Registration Rights Agreement. In addition, we also have agreed to reimburse B. Riley Principal Capital
up to $50,000 for the fees and disbursements of its counsel in connection with the transactions contemplated by the Purchase Agreement
and the Registration Rights Agreement.
We also have agreed to indemnify B. Riley Principal Capital and certain
other persons against certain liabilities in connection with the offering of Shares offered hereby, including liabilities arising under
the Securities Act or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. B.
Riley Principal Capital has agreed to indemnify us against liabilities under the Securities Act that may arise from certain written information
furnished to us by B. Riley Principal Capital specifically for use in this prospectus or, if such indemnity is unavailable, to contribute
amounts required to be paid in respect of such liabilities. Insofar as indemnification for liabilities arising under the Securities Act
may be permitted to our directors, officers, and controlling persons, we have been advised that in the opinion of the SEC this indemnification
is against public policy as expressed in the Securities Act and is therefore, unenforceable.
We estimate that the total expenses for the offering will be approximately
$2,700,000.
B. Riley Principal Capital has represented to us that at no time prior
to the date of the Purchase Agreement has B. Riley Principal Capital engaged in or effected, in any manner whatsoever, directly or indirectly,
for its own principal account or for the principal account of any of its affiliates, any short sale (as such term is defined in Rule
200 of Regulation SHO of the Exchange Act) of our Common Stock or any hedging transaction, which establishes a net short position with
respect to our Common Stock. B. Riley Principal Capital has agreed that during the term of the Purchase Agreement, neither B. Riley
Principal Capital, nor any of its affiliates, will enter into or effect, directly or indirectly, any of the foregoing transactions for
its own principal account or for the principal account of any other such entity.
We have advised B. Riley Principal Capital that it is required to
comply with Regulation M promulgated under the Exchange Act. With certain exceptions, Regulation M precludes the selling stockholder,
any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing,
or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire distribution
is complete. Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security in connection with
the distribution of that security. All of the foregoing may affect the marketability of the securities offered by this prospectus.
This offering will terminate on the date that all Shares offered by
this prospectus have been sold by the selling stockholder.
Our Common Stock is currently listed on Nasdaq under the symbol “CIDM”.
One or more affiliates of B. Riley Principal Capital have provided,
currently provide and/or from time to time in the future may provide various investment banking and other financial services for us that
are unrelated to the transactions contemplated by the Purchase Agreement and the offering of shares for resale by B. Riley Principal Capital
to which this prospectus relates, for which investment banking and other financial services they have received and may continue to receive
customary fees, commissions and other compensation from us, apart from the fees, discounts and other compensation that B. Riley Principal
Capital has received and may continue to receive from us in connection with the transactions contemplated by the Purchase Agreement.
DESCRIPTION OF SECURITIES
The following summary description of our common stock is not intended
to be complete and is subject, and qualified in its entirety by reference, to our amended and restated certificate of incorporation and
our bylaws, in each case as amended to date.
General
Our authorized capital stock consists of 275,000,000 shares of Common
Stock and 15,000,000 shares of preferred stock, par value $0.001 per share, of which 20 shares are authorized as Series A 10% Non-Voting
Cumulative Preferred Stock (the “Series A Preferred Stock”).
As of October 12, 2021, there were 169,320,196 shares of Common Stock
outstanding and 7 shares of Series A Preferred Stock outstanding.
Common Stock
As of October 12, 2021, we had 275,000,000 shares designated as Common
Stock, and we had reserved for issuance (i) 15,530,169 shares pursuant to the Company’s 2017 Equity Incentive Plan, (ii) 762,500
shares pursuant to inducement stock options, stock appreciation rights and performance share units, (iii) 261,587 shares pursuant to
options that remain outstanding under our 2010 Second Amended and Restated Equity Incentive Plan, (iv) 1,698,519 shares of Common Stock
pursuant to outstanding warrants, and (v) 1,315,851 shares held in the treasury of the Company.
Voting Rights. Holders of Common Stock are entitled
to one vote per share on all matters submitted to a vote of our stockholders. Holders of a majority of our outstanding shares of Class
A common stock present or represented by proxy at any meeting of our stockholders constitute a quorum.
Dividends; Liquidation; Preemptive Rights. Holders of
Common Stock are entitled to receive dividends only if, as and when declared by our board of directors out of funds legally available
for that purpose. In the event of our liquidation, dissolution or winding-up, holders of Common Stock are entitled, subject to any priorities
due to any holders of our preferred stock, ratably to share in all assets remaining after payment of our liabilities. Holders of Common
Stock have no preemptive rights nor any other rights to subscribe for shares or securities convertible into or exchangeable for shares
of Common Stock.
Our Common Stock is currently listed on Nasdaq under the symbol “CIDM”.
Description of Warrants
The following table presents information on outstanding warrants to
purchase shares of our Common Stock as of October 12, 2021. All of the outstanding warrants are fully vested and exercisable.
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Amount Outstanding
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Expiration
|
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Exercise Price Per Share
|
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Warrants issued in connection with exchanges of convertible notes
|
|
|
246,019
|
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|
December 2021
|
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$
|
1.30
|
|
Warrants issued in connection with a term loan agreement
|
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1,400,000
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December 2022
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$
|
1.80
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All of such warrants provide for adjustment upon a stock split, stock
dividend, or stock reclassification. The warrants expiring in December 2021 provide for customary anti-dilution rights.
Preferred Stock
Our Board of Directors is authorized, subject
to any limitations prescribed by law, without further stockholder approval, to issue from time to time up to an aggregate of 15,000,000
shares of our preferred stock, in one or more series.
Series A Preferred Stock. The
Series A Preferred Stock may be redeemed by the Company at any time after the second anniversary of the date such shares were issued
in cash or, at the Company’s option if certain conditions are met, in shares of Class A common stock. The holders of
Series A Preferred Stock are entitled to receive cumulative dividends from the date of issuance at an annual rate of 10% of the original
issue price. Such dividends shall be payable in arrears in cash or, at the Company’s option, in shares of Class A common
stock if certain conditions are met, quarterly on the last day of each calendar quarter, until such shares of Preferred Stock are redeemed.
Non-designated preferred stock.
Each other series of preferred stock to be issued, if any, will have such number of shares, designations, preferences, powers and qualifications
and special or relative rights or privileges as will be determined by our board of directors, which may include, among others, dividend
rights, voting rights, redemption and sinking fund provisions, liquidation preferences, conversion rights and preemptive rights. The
rights of the holders of our common stock will be subject to the rights of holders of any preferred stock outstanding and issued in the
future. The issuance of preferred stock, while providing desirable flexibility in connection with the possible acquisitions
and other corporate purposes, could have the effect of making it more difficult for a third party to acquire, or of discouraging a third
party from acquiring, a majority of our outstanding voting stock.
Anti-Takeover Effects of Delaware Law; Our Certificate of Incorporation
and Our Bylaws
Delaware law, our certificate of incorporation and our bylaws contain
provisions that could have the effect of delaying, deferring or discouraging another party from acquiring control of us. These provisions,
which are summarized below, are intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are
also designed to encourage persons seeking to acquire control of us to first negotiate with our Board.
No Cumulative Voting. Under Delaware law, the
right to vote cumulatively does not exist unless the certificate of incorporation specifically authorizes cumulative voting. Our Fifth
Amended and Restated Certificate of Incorporation does not grant shareholders the right to vote cumulatively.
Blank Check Preferred Stock. We believe that the availability
of the preferred stock under our Fifth Amended and Restated Certificate of Incorporation provides us with flexibility in addressing corporate
issues that may arise. Having these authorized shares available for issuance will allow us to issue shares of preferred stock without
the expense and delay of a special stockholders’ meeting. The authorized shares of preferred stock, as well as shares of Class
A common stock, will be available for issuance without further action by our stockholders, with the exception of any actions required
by applicable law or the rules of any stock exchange on which our securities may be listed. Our Board of Directors will have the power,
subject to applicable law, to issue classes or series of preferred stock that could, depending on the terms of the class or series, impede
the completion of a merger, tender offer or other takeover attempt.
Stockholder Action by Written Consent. Our Fifth Amended
and Restated Certificate of Incorporation provides that any action required or permitted to be taken at any annual or special meeting
of our stockholders may be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting
forth the action so taken, are signed by the holders of outstanding capital stock of having not less than the minimum number of votes
necessary to authorize such action at a meeting at which all shares of capital stock entitled to vote thereon were present and voted.
Transfer Agent
The transfer agent for our Common Stock is American Stock Transfer
& Trust Company, LLC. Its address is 6201 15th Avenue, Brooklyn, NY 11219, and its telephone number is (800) 937-5449.
LEGAL MATTERS
The validity of the offered securities has been passed on for us by
Kelley Drye & Warren LLP, New York, New York.
EXPERTS
The consolidated balance sheets of Cinedigm Corp. as of March 31,
2021 and 2020, and the related consolidated statements of operations, comprehensive loss, deficit and cash flows for each of the years
in the two-year period ended March 31, 2021, have been audited by EisnerAmper LLP, independent registered public accounting firm, as
stated in their report which is incorporated herein by reference in reliance on the report of such firm given upon their authority as
experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We are required to file periodic reports, proxy statements and other
information relating to our business, financial and other matters with the SEC under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). Our filings are available to the public over the Internet at the SEC’s web site at http://www.sec.gov.
You may also read and copy any document we file with the SEC at, and obtain a copy of any such document by mail from, the SEC’s
public reference room located at 100 F Street, N.E., Washington, D.C. 20549, at prescribed charges. Please call the SEC at 1-800-SEC-0330
for further information on the public reference room and its charges.
We have filed with the SEC a Registration Statement on Form S-1 under
the Securities Act with respect to our securities described in this prospectus. References to the “registration
statement” or the “registration statement of which this prospectus is a part” mean the original
registration statement and all amendments, including all schedules and exhibits. This prospectus does not, and any prospectus supplement
will not, contain all of the information in the registration statement because we have omitted parts of the registration statement in
accordance with the rules of the SEC. Please refer to the registration statement for any information in the registration statement that
is not contained in this prospectus or a prospectus supplement. The registration statement is available to the public over the Internet
at the SEC’s web site described above and can be read and copied at the location described above.
Each statement made in this prospectus or any prospectus supplement
concerning a document filed as an exhibit to the registration statement is qualified in its entirety by reference to that exhibit for
a complete description of its provisions.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to “incorporate by reference”
in this prospectus the information contained in other documents filed separately with the SEC. This means that we can disclose important
information to you by referring you to other documents filed with the SEC that contain such information. The information incorporated
by reference is an important part of this prospectus and prospectus supplement. Information disclosed in documents that we file later
with the SEC will automatically add to, update and change information previously disclosed. If there is additional information in a later
filed document or a conflict or inconsistency between information in this prospectus or a prospectus supplement and information incorporated
by reference from a later filed document, you should rely on the information in the later dated document.
We incorporate by reference the documents listed below (and the documents
incorporated by reference therein) that we have previously filed, any documents that we may file after the date of this registration
statement and prior to the effectiveness of this registration statement, and any documents that we may file in the future, with the SEC
under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, until the offerings
contemplated by this prospectus are completed:
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our annual report on Form 10-K for the fiscal year
ended March 31, 2021, filed with the SEC on July 30, 2021 (the “2021 Form 10-K”);
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our Quarterly Report on Form 10-Q filed with the SEC on September 9,
2021;
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our Current Report on Form 8-K filed with the SEC on March 10, 2021;
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our Current Report on Form 8-K filed with the SEC on March 30, 2021;
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our Current Report on Form 8-K filed with the SEC on June 25, 2021;
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our Current Report on Form 8-K filed with the SEC on July 9, 2021;
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our Current Report on Form 8-K filed with the SEC on July 15, 2021 (with
respect to Items 1.02 and 9.01);
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our Current Report on Form 8-K filed with the SEC on July 26, 2021;
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our Current Report on Form 8-K filed with the SEC on July 30, 2021;
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our Current Report on Form 8-K filed with the SEC on August 10, 2021;
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our Current Report on Form 8-K/A filed with the SEC on August 13, 2021;
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our Current Report on Form 8-K filed with the SEC on August 16, 2021;
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our Current Report on Form 8-K filed with the SEC on September 2, 2021
(with respect to Items 3.01 and 9.01);
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our Current Report on Form 8-K filed with the SEC on September 13, 2021;
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our Current Report on Form 8-K filed with the SEC on September 17, 2021;
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our Current Reports on Form 8-K filed with the SEC on September 21,
2021;
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our Current Report on Form 8-K filed with the SEC on October
12, 2021 (with respect to Items 5.02, 5.03, 5.07 and 9.01 other than Exhibit 99.1);
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our Current Report on Form 8-K filed with the SEC on October
12, 2021;
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the description of our Class A common stock contained in our Registration
Statement on Form 8-A (File No. 000-51910), filed with the SEC under Section 12 of the Exchange Act on April 12, 2006; and
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the description of our Class A common stock contained in our amendment
no. 1 on Form 8-A/A (File No. 001-31810), filed with the SEC under Section 12 of the Exchange Act on October 6, 2009.
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You may obtain a copy of these
filings, excluding exhibits (but including exhibits that are specifically incorporated by reference in any such filing), free of charge,
by oral or written request directed to: Cinedigm Corp., 237 West 35th Street, Suite 605, New York, NY 10001, Attention: General
Counsel, Telephone (212) 206-8600, Email info@cinedigm.com. In addition, these filings are available on our web site at www.cinedigm.com.
INDEMNIFICATION AGAINST LIABILITY UNDER THE
SECURITIES ACT
We are permitted to indemnify to the fullest extent now or hereafter
permitted by law, each director, officer or other authorized representative of the Company who was or is made a party or is threatened
to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative,
by reason of the fact that he is or was an authorized representative of the Company, against all expenses (including attorneys’
fees and disbursements), judgments, fines (including excise taxes and penalties) and amounts paid in settlement actually and reasonably
incurred by him in connection with such action, suit or proceeding.
A director of the Company shall not be personally liable to the Company
or its stockholders for monetary damages for breach of fiduciary duty as a director, provided, however that this provision shall not
eliminate or limit the liability of a director to the extent that such elimination or liability is expressly prohibited by the Delaware
General Corporation Law as in effect at the time of the alleged breach of duty by such director.
Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to our directors, officers and controlling persons pursuant to any arrangement, provision or otherwise, we have
been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by us of expenses
incurred or paid by any of our directors, officers or controlling persons in the successful defense of any action, suit or proceeding)
is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the
opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication
of such issue.
25,210,084 Shares of Class A Common Stock
PROSPECTUS
The date of this
prospectus is ____________, 2021
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution.
The following table presents the costs and expenses, payable by us
in connection with the sale of securities being registered under this registration statement. All amounts are estimates except for the
SEC registration fee.
SEC registration fee
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$
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5,961
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Legal fees and expenses
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$
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30,000
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Accounting fees and expenses
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$
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30,000
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Miscellaneous fees and expenses
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$
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4,039
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Total:
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$
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70,000
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Item 14. Indemnification of Directors and Officers.
The amended and restated certificate of incorporation
and the bylaws of the Company provide that the Company shall indemnify its officers, directors and certain others to the fullest extent
permitted by the Delaware General Corporation Law (“DGCL”). Section 145 of the DGCL, provides in pertinent part as follows:
(a) A corporation may indemnify any person who
was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that he
is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such
action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests
of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.
The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its
equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he reasonably
believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had
reasonable cause to believe that his conduct was unlawful.
(b) A corporation may indemnify any person who
was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the
corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the
corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise against expenses (including attorneys’ fees) actually and reasonably incurred
by him in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed
to be in or not opposed to the best interests of the corporation and except that no indemnification shall be made in respect of any claim,
issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the
Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses
which the Court of Chancery or such other court shall deem proper.
(c) To the extent that a present or former director
or officer of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in
subsections (a) and (b) of this Section, or in defense of any claim, issue or matter therein, he shall be indemnified against expenses
(including attorneys’ fees) actually and reasonably incurred by him in connection therewith.
(d) Any indemnification under subsections (a)
and (b) of this Section (unless ordered by a court) shall be made by the corporation only as authorized in the specific case upon a determination
that indemnification of the present or former director, officer, employee or agent is proper in the circumstances because he has met
the applicable standard of conduct set forth in subsections (a) and (b) of this Section. Such determination shall be made with respect
to a person who is a director or officer at the time of such determination (1) by a majority vote of directors who are not parties to
such action, suit or proceeding, even though less than a quorum, (2) by a committee of such directors designated by majority vote of
such directors, even though less than a quorum, (3) if there are no such directors, or if such directors so direct, by independent legal
counsel in a written opinion or (4) by the stockholders.
(e) Expenses (including attorneys’ fees)
incurred by an officer or director in defending any civil, criminal, administrative or investigative action, suit or proceeding may be
paid by the corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on
behalf of such director or officer to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified
by the corporation as authorized in this section. Such expenses (including attorneys’ fees) incurred by former directors and officers
or other employees and agents may be so paid upon such terms and conditions, if any, as the corporation deems appropriate.
(f) The indemnification and advancement of expenses
provided by, or granted pursuant to, the other subsections of this Section shall not be deemed exclusive of any other rights to which
those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of stockholders or disinterested
directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office.
(g) A corporation shall have power to purchase
and maintain insurance on behalf of any person, who is or was a director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising out of his
status as such, whether or not the corporation would have the power to indemnify him against such liability under this Section.
(h) For purposes of this Section, references to
“the corporation” shall include, in addition to the resulting corporation, any constituent corporation (including any constituent
of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority
to indemnify its directors, officers, and employees or agents, so that any person who is or was a director, officer, employee or agent
of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under this Section
with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate
existence had continued.
(i) For purposes of this Section, references to
“other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes
assessed on a person with respect to any employee benefit plan; and references to “serving at the request of the corporation”
shall include any service as a director, officer, employee or agent of the corporation, which imposes duties on, or involves services
by, such director, officer, employee, or agent of the corporation, which imposes duties on, or involves services by, such director, officer,
employee, or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith
and in a manner he reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall
be deemed to have acted in a manner “not opposed to the best interests of the corporation” as referred to in this Section.
(j) The indemnification and advancement of expenses
provided by, or granted pursuant to, this Section shall, unless otherwise provided when authorized or ratified, continue as to a person
who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators
of such a person.
As permitted by Section 102(b)(7) of the DGCL,
the Company’s fourth amended and restated certificate of incorporation eliminates the personal liability of each of the Company’s
directors to the Company and its stockholders for monetary damages for breaches of his or her fiduciary duties as a director except that
the fourth amended and restated certificate of incorporation does not eliminate or limit the liability of a director to the extent that
such elimination or limitation of liability is expressly prohibited by the DGCL as in effect at the time of the alleged breach of duty
by such director.
In addition, the Company has entered into contractual
agreements with each of its directors and officers to indemnify such individuals to the full extent permitted by law. These agreements
also resolve certain procedural and substantive matters that are not covered, or are covered in less detail, in the Company’s By-laws
or by the Delaware General Corporation Law. The Company also currently maintains director and officer liability insurance.
Item 15. Recent Sales of Unregistered Securities.
On September 17, 2021, Cinedigm Corp. (the “Company”)
consummated the acquisition of substantially all of the assets of Bloody Disgusting, LLC (“Bloody Disgusting”). As part of
the purchase price for the acquisition of these assets of Bloody Disgusting, the Company issued 1,039,501 shares of Class A common stock
pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended.
Item
16. Exhibits and Financial Statement Schedules.
(a)
Exhibits.
Exhibit Number
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Description of Document
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3.1
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Fifth Amended and Restated Certificate of Incorporation of the Company. (46)
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3.1.1
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Amendment to Fifth Amended and Restated Certificate of Incorporation of the Company. (65)
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3.2
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Amended and Restated Bylaws of the Company, as amended. (19)
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4.1
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Specimen certificate representing Class A common stock. (1)
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4.2
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-
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Specimen certificate representing Series A Preferred Stock. (7)
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4.3
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Limited Recourse Pledge Agreement, dated as of February 28, 2013, made by Cinedigm Digital Cinema Corp. in favor of Prospect Capital Corporation, as Collateral Agent. (16)
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4.4
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-
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Guaranty, Pledge and Security Agreement, dated as of February 28, 2013, made by Cinedigm DC Holdings, LLC, Access Digital Media, Inc. and Access Digital Cinema Phase 2, Corp., in favor of Prospect Capital Corporation, as Collateral Agent. (16)
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4.5
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-
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Limited Recourse Guaranty Agreement, dated as of February 28, 2013, made by Cinedigm Digital Cinema Corp. in favor of Prospect Capital Corporation, as Collateral Agent and as Administrative Agent. (16)
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4.6
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-
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Promissory Note dated April 10, 2020. (58)
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4.7
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-
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Note issued on October 9, 2018. (37)
|
4.8
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-
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Guaranty Agreement, dated as of July 14, 2016, among the Guarantors and in favor of Cortland Capital Market Services LLC, as Administrative and Collateral Agent. (24)
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4.9
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-
|
Second Lien Security Agreement, dated as of July 14, 2016, among the Company, Loan Parties signatory thereto, certain Subsidiaries of the Company and Cortland Capital Market Services LLC, as Administrative and Collateral Agent. (24)
|
4.10
|
-
|
Warrant issued on July 14, 2016. (24)
|
4.11
|
-
|
Security Agreement, dated as of October 18, 2011, among CDF2 Holdings, LLC and each Grantor from time to time party thereto and Société Générale, New York Branch, as Collateral Agent for CHG-Meridian U.S. Finance, Ltd. And any other CHG Lease Participants. (14)
|
4.12
|
-
|
Form of Warrant issued on December 23, 2016. (26)
|
4.13
|
-
|
Warrant issued on December 29, 2017. (33)
|
4.14
|
-
|
Trademark Security Agreement dated as of March 30, 2018 by and between the Company and East West Bank. (34)
|
4.15
|
-
|
Trademark Security Agreement dated as of March 30, 2018 by and between Cinedigm Entertainment Corp. and East West Bank. (34)
|
4.16
|
|
Trademark Security Agreement dated as of March 30, 2018 by and between Vistachiara Productions, Inc. and East West Bank. (34)
|
4.17
|
-
|
Copyright Security Agreement dated as of March 30, 2018 by and between the Company and East West Bank. (34)
|
4.18
|
-
|
Copyright Security Agreement dated as of March 30, 2018 by and between Cinedigm Home Entertainment, LLC and East West Bank. (34)
|
4.19
|
-
|
Copyright Security Agreement dated as of March 30, 2018 by and between Cinedigm Entertainment Corp. and East West Bank. (34)
|
4.20
|
-
|
Copyright Security Agreement dated as of March 30, 2018 by and between Vistachiara Productions, Inc. and East West Bank. (34)
|
4.21
|
-
|
Patent Security Agreement dated as of March 30, 2018 by and between the Company and East West Bank. (34)
|
4.22
|
-
|
Convertible Subordinated Promissory Note dated July 12, 2019. (39)
|
4.22.1
|
|
Letter Amendment dated April 15, 2020 by and between Bison Global Investment SPC for and on behalf of Global Investment SPC-Bison Global No. 1 SP and Cinedigm Corp. (43)
|
4.23
|
-
|
Trademark Security Agreement dated as of July 3, 2019 by and between Comic Blitz II LLC and East West Bank. (39)
|
5.1
|
-
|
Opinion of Kelley Drye & Warren LLP. *
|
10.1
|
-
|
Second Lien Loan Agreement, dated as of July 14, 2016, among the Company, the lenders party thereto and Cortland Capital Market Services LLC, as Administrative and Collateral Agent. (24)
|
10.1.1
|
-
|
First Amendment to Second Lien Loan Agreement, dated as of August 4, 2016, among the Company, the lender party thereto and Cortland Capital Market Services Inc. as Administrative and Collateral Agent. (23)
|
10.1.2
|
-
|
Second Amendment to Second Lien Loan Agreement, dated as of October 7, 2016, among the Company, the lenders party thereto and Cortland Capital Market Services LLC, as Administrative and Collateral Agent. (20)
|
10.1.3
|
-
|
Third Amendment to Second Lien Loan Agreement, dated as of March 31, 2017, among the Company, the lenders party thereto and Cortland Capital Market Services Inc. as Administrative and Collateral Agent. (28)
|
10.1.4
|
-
|
Consent dated June 28, 2019 to Second Lien Loan Agreement among the Company, the lenders party thereto and Cortland Capital Market Services Inc. as Administrative and Collateral Agent. (39)
|
10.1.5
|
-
|
Consent dated June 26, 2020 to Second Lien Loan Agreement among the Company, the lenders party thereto and Cortland Capital Market Services Inc. as Administrative and Collateral Agent. (49)
|
10.2†
|
-
|
Second Amended and Restated 2000 Equity Incentive Plan of the Company. (3)
|
10.2.1†
|
-
|
Amendment dated May 9, 2008 to the Second Amended and Restated 2000 Equity Incentive Plan of the Company. (5)
|
10.2.2†
|
-
|
Form of Notice of Restricted Stock Award. (3)
|
10.2.3†
|
-
|
Form of Non-Statutory Stock Option Agreement. (4)
|
10.2.4†
|
-
|
Form of Restricted Stock Unit Agreement (employees). (5)
|
10.2.5†
|
-
|
Form of Stock Option Agreement. (2)
|
10.2.6†
|
-
|
Form of Restricted Stock Unit Agreement (directors). (5)
|
10.2.7†
|
-
|
Amendment No. 2 dated September 4, 2008 to the Second Amended and Restated 2000 Equity Incentive Plan of the Company. (6)
|
10.2.8†
|
-
|
Amendment No. 3 dated September 30, 2009 to the Second Amended and Restated 2000 Equity Incentive Plan of the Company. (8)
|
10.2.9†
|
-
|
Amendment No. 4 dated September 14, 2010 to the Second Amended and Restated 2000 Equity Incentive Plan of the Company. (12)
|
10.2.10†
|
-
|
Amendment No. 5 dated April 20, 2012 to the Second Amended and Restated 2000 Equity Incentive Plan of the Company. (13)
|
10.2.11†
|
-
|
Amendment No. 6 dated September 12, 2012 to the Second Amended and Restated 2000 Equity Incentive Plan of the Company. (15)
|
10.2.12†
|
-
|
Amendment No. 7 dated September 16, 2014 to the Second Amended and Restated 2000 Equity Incentive Plan of the Company. (18)
|
10.2.13†
|
-
|
Amendment No. 8 dated September 8, 2016 to the Second Amended and Restated 2000 Equity Incentive Plan of the Company. (21)
|
10.2.14†
|
-
|
Amendment No. 9 dated September 27, 2016 to the Second Amended and Restated 2000 Equity Incentive Plan of the Company. (22)
|
10.3†
|
-
|
Cinedigm Corp. Management Incentive Award Plan. (9)
|
10.4†
|
-
|
Form of Indemnification Agreement for non-employee directors. (10)
|
10.5†
|
-
|
2017 Equity Incentive Plan of the Company. (29)
|
10.5.1†
|
-
|
Form of Notice of Incentive Stock Option Grant. (30)
|
10.5.2†
|
-
|
Form of Notice of Option Grant. (30)
|
10.5.3†
|
-
|
Form of Notice of Restricted Stock Award. (30)
|
10.5.4†
|
-
|
Form of Notice of Restricted Stock Unit Award. (30)
|
10.5.5†
|
-
|
Form of Notice of Performance-Based Restricted Stock Award. (32)
|
10.5.6†
|
-
|
Form of Notice of Stock Appreciation Right Grant (revised). (36)
|
10.5.7†
|
-
|
Amendment No. 1 to the 2017 Equity Incentive Plan. (42)
|
10.5.8†
|
-
|
Amendment No. 2 to the 2017 Equity Incentive Plan. (54)
|
10.5.9†
|
-
|
Amendment No. 3 to the 2017 Equity Incentive Plan. (55)
|
10.5.10†
|
-
|
Amendment No. 4 to the 2017 Equity Incentive Plan. (60)
|
10.5.11†
|
-
|
Form of Notice of Restricted Stock Award (Directors).(61)
|
10.5.12†
|
-
|
Amendment No. 5 to the 2017 Equity Incentive Plan. (65)
|
10.6
|
-
|
Registration Rights Agreement, dated as of August 4, 2016, among the Company and the holders party thereto. (23)
|
10.7
|
-
|
Term Loan Agreement, dated as of February 28, 2013, by and among Cinedigm DC Holdings, LLC, Access Digital Media, Inc., Access Digital Cinema Phase 2, Corp., the Guarantors party thereto, the Lenders party thereto and Prospect Capital Corporation as Administrative Agent and Collateral Agent. (16) (Confidential treatment granted under Rule 24b-2 as to certain portions which are omitted and filed separately with the SEC.)
|
10.7.1
|
-
|
Amendment No. 1, dated as of August 12, 2013, to Term Loan Agreement dated February 28, 2013 by and among Cinedigm DC Holdings, LLC, Access Digital Media, Inc., Access Digital Cinema Phase 2, Corp., the Guarantors party thereto, the Lenders party thereto and Prospect Capital Corporation as Administrative Agent and Collateral Agent. (64)
|
10.7.2
|
-
|
Omnibus Joinder, Amendment No. 2 to Term Loan Agreement and Amendment No. 1 to Guaranty, Pledge and Security Agreement, dated as of July 12, 2017, by and among Cinedigm DC Holdings, LLC, Access Digital Media, Inc., Access Digital Cinema Phase 2, Corp., Christie/AIX, Inc., Cinedigm Digital Funding I, LLC, the Lenders party thereto and Prospect Capital Corporation as Administrative Agent and Collateral Agent. (64)
|
10.7.3
|
-
|
Amendment No. 3, dated as of March 4, 2021, to Term Loan Agreement dated February 28, 2013 by and among Cinedigm DC Holdings, LLC, Access Digital Media, Inc., Access Digital Cinema Phase 2, Corp., the Guarantors party thereto, the Lenders party thereto and Prospect Capital Corporation as Administrative Agent and Collateral Agent. (64)
|
10.8
|
-
|
Equipment Purchase Agreement dated March 26, 2021 between Cinedigm Digital Funding I, LLC and American Multi-Cinema, Inc. (64)
|
10.9
|
-
|
Equipment Purchase Agreement dated March 26, 2021 between Access Digital Cinema Phase 2, Corp., Access Digital Cinema Phase 2 B/AIX Corp. and American Multi-Cinema, Inc. (64)
|
10.10
|
-
|
Strategic Advisor Agreement between Cinedigm Corp. and Ronald L. Chez dated as of April 3, 2017. (27)
|
10.11
|
-
|
Lease for 15301 Ventura Boulevard, Sherman Oaks, CA, dated as of January 4, 2017 between Douglas Emmett 2016 and Cinedigm Corp. (28)
|
10.12†
|
-
|
Amended and Restated Employment Agreement between Cinedigm Digital Cinema Corp. and Christopher J. McGurk dated as of August 22, 2013. (17)
|
10.12.1†
|
-
|
Amendment to Amended and Restated Employment Agreement between Cinedigm Corp. and Christopher J. McGurk dated as of January 4, 2017. (25)
|
10.12.2†
|
-
|
Amendment No. 2 to Amended and Restated Employment Agreement between Cinedigm Corp. and Christopher J. McGurk dated as of June 7, 2018. (35)
|
10.12.3†
|
-
|
Employment Agreement between Cinedigm Corp. and Christopher J. McGurk dated as of November 19, 2020. (47)
|
10.12.4†
|
-
|
Employment Agreement between Cinedigm Corp. and Christopher J. McGurk dated as of December 10, 2020. (48)
|
10.13†
|
-
|
Stock Option Agreement between Cinedigm Digital Cinema Corp. and Christopher J. McGurk dated as of December 23, 2010. (11)
|
10.14
|
-
|
Multiparty Agreement, dated as of October 18, 2011, among Cinedigm Digital Funding 2, LLC, as Borrower, Access Digital Cinema Phase 2, Corp., CDF2 Holdings, LLC, Cinedigm Digital Cinema Corp., CHG-MERIDIAN U.S. Finance, Ltd., Société Générale, New York Branch, as Senior Administrative Agent and Ballantyne Strong, Inc., as Approved Vendor. (14)
|
10.15
|
-
|
Master Equipment Lease No. 8463, effective as of October 18, 2011, by and between CHG- MERIDIAN U.S. Finance, Ltd. And CDF2 Holdings, LLC. (14)
|
10.16
|
-
|
Master Equipment Lease No. 8465, effective as of October 18, 2011, by and between CHG-MERIDIAN U.S. Finance, Ltd. And CDF2 Holdings, LLC. (14)
|
10.17
|
-
|
Sale and Leaseback Agreement, dated as of October 18, 2011, by and between CDF2 Holdings, LLC and CHG-MERIDIAN U.S. Finance, Ltd. (14)
|
10.18
|
-
|
Registration Rights Agreement, dated as of November 1, 2017, between the Company and the purchasers listed on Schedule I therein. (31)
|
10.19
|
-
|
Form of Voting Agreement. (31)
|
10.20
|
-
|
Loan, Security and Guaranty Agreement, dated as of March 30, 2018, by and between the Company, East West Bank and the Guarantors named therein. (34)
|
10.20.1
|
-
|
Amendment No. 2 to Loan, Guaranty and Security Agreement dated as of July 3, 2019 by and between the Company, East West Bank and the Guarantors named therein. (39)
|
10.20.2
|
|
Amendment No. 3 to Loan, Guaranty and Security Agreement dated as of July 31, 2019 by and among the Company, East West Bank and the Guarantors named therein. (41)
|
10.20.3
|
|
Amendment No. 4 to Loan, Guaranty and Security Agreement dated as of June 25, 2020 by and between the Company, East West Bank and the Guarantors named therein. (49)
|
10.20.4
|
-
|
Letter from East West Bank dated June 22, 2021. (63)
|
10.21†
|
-
|
Employment Agreement between Cinedigm Corp. and Gary S. Loffredo dated as of October 13, 2013. (38)
|
10.21.1†
|
-
|
Letter of Promotion between Cinedigm Corp. and Gary S. Loffredo dated as of February 28, 2019.(40)
|
10.21.2†
|
-
|
Employment Agreement between Cinedigm Corp. and Gary S. Loffredo dated as of December 23, 2020. (50)
|
10.22†
|
-
|
Employment Agreement between Cinedigm Corp. and Erick Opeka dated as of September 15, 2018. (40)
|
10.22.1†
|
-
|
Employment Agreement between Cinedigm Corp. and Erick Opeka dated as of December 23, 2020. (50)
|
10.23
|
-
|
Securities Purchase Agreement dated February 2, 2021 between Cinedigm Corp. and Ionic Ventures, LLC. (51)
|
10.24
|
-
|
Support Letter dated July 10, 2019 from Bison Entertainment and Media Group. (40)
|
10.25
|
-
|
Exchange Agreement dated as of January 21, 2021 between Cinedigm Corp. and Wolverine Flagship Fund Trading Limited. (52)
|
10.26
|
-
|
Exchange Agreement dated as of December 4, 2020 among Cinedigm Corp. and Byline Bank f/k/a First Bank & Trust as Custodian of the Ronald L. Chez IRA #1073. (53)
|
10.27
|
-
|
Stock Purchase Agreement dated April 10, 2020, among Cinedigm Corp., Bison Global Investment SPC – Bison Global No. 1 SP, Huatai Investment LP, Antai Investment LP, Mingtai Investment LP and Shangtai Asset Management LP (43)
|
10.28
|
-
|
Securities Purchase Agreement dated May 20, 2020. (44)
|
10.29
|
-
|
Support Letter dated June 29, 2020 from Bison Entertainment and Media Group. (49)
|
10.30
|
-
|
Exchange Agreement dated as of June 24, 2020 among Cinedigm Corp. and BlueMountain Global Volatility Master Fund L.P., BlueMountain Logan Opportunities Master Fund L.P., Blue Mountain Credit Alternatives Master Fund L.P., BlueMountain Montenvers Master Fund SCA SICAV-SIF, and BlueMountain Foinaven Master Fund L.P. (45)
|
10.31
|
-
|
Exchange Agreement dated as of December 4, 2020 among Cinedigm Corp., Lotus Investors LLC, Hedy Klineman Marital Trust, UVE Partners, LLC, and Hudson Asset Partners LLC. (53)
|
10.32
|
-
|
Securities Purchase Agreement dated July 16, 2020 among Cinedigm Corp., Anson Investments Master Fund LP, Anson East Master Fund LP and CVI Investments, Inc. (56)
|
10.33
|
-
|
Sales Agreement, dated July 6, 2020, by and between Cinedigm Corp., A.G.P./Alliance Global Partners and B. Riley FBR, Inc. (57)
|
10.32†
|
-
|
Employment Agreement dated as of September 13, 2021 between Cinedigm Corp. and John Canning. (62)
|
10.33†
|
-
|
Form of Stock Appreciation Rights Agreement – Canning. (62)
|
10.34†
|
-
|
Form of Performance Stock Unit Agreement – Canning. (62)
|
10.35
|
-
|
Common Stock Purchase Agreement dated October 12, 2021 between Cinedigm Corp. and B. Riley Principal Capital, LLC. (59)
|
10.36
|
-
|
Registration Rights Agreement dated October 12, 2021 between Cinedigm Corp. and B. Riley Principal Capital, LLC. (59)
|
21.1
|
-
|
List of Subsidiaries.*
|
23.1
|
-
|
Consent of Kelley Drye & Warren LLP.* (Included in Exhibit 5.1)
|
23.2
|
-
|
Consent of EisnerAmper LLP.*
|
24.1
|
-
|
Powers of Attorney.* (Contained on signature page)
|
104
|
-
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)*
|
|
†
|
Management
compensatory arrangement.
|
Documents
Incorporated Herein by Reference:
|
(1)
|
Previously filed with the Securities and Exchange Commission on
November 4, 2003 as an exhibit to the Company’s Amendment No. 3 to Registration Statement on Form SB-2 (File No. 333-107711).
|
|
(2)
|
Previously filed with the Securities and Exchange Commission on
April 25, 2005 as an exhibit to the Company’s Registration Statement on Form S-8 (File No. 333-124290).
|
|
(3)
|
Previously filed with the Securities and Exchange Commission on
September 24, 2007 as an exhibit to the Company’s Form 8-K (File No. 000-51910).
|
|
(4)
|
Previously filed with the Securities and Exchange Commission on
April 3, 2008 as an exhibit to the Company’s Form 8-K (File No. 000-51910).
|
|
(5)
|
Previously filed with the Securities and Exchange Commission on
May 14, 2008 as an exhibit to the Company’s Form 8-K (File No. 000-51910).
|
|
(6)
|
Previously filed with the Securities and Exchange Commission on
September 10, 2008 as an exhibit to the Company’s Form 8-K (File No. 000-51910).
|
|
(7)
|
Previously filed with the Securities and Exchange Commission on
February 9, 2009 as an exhibit to the Company’s Form 8-K (File No. 000-51910).
|
|
(8)
|
Previously filed with the Securities and Exchange Commission on
October 6, 2009 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(9)
|
Previously filed with the Securities and Exchange Commission on
October 27, 2009 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(10)
|
Previously filed with the Securities and Exchange Commission on
September 21, 2009 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(11)
|
Previously filed with the Securities and Exchange Commission on
January 3, 2011 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(12)
|
Previously filed with the Securities and Exchange Commission on
September 16, 2010 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(13)
|
Previously filed with the Securities and Exchange Commission on
April 24, 2012 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(14)
|
Previously filed with the Securities and Exchange Commission on
October 24, 2011 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(15)
|
Previously filed with the Securities and Exchange Commission on
September 14, 2012 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(16)
|
Previously filed with the Securities and Exchange Commission on
March 4, 2013 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(17)
|
Previously filed with the Securities and Exchange Commission on
August 28, 2013 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(18)
|
Previously filed with the Securities and Exchange Commission on
September 17, 2014 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(19)
|
Previously filed with the Securities and Exchange Commission on
August 12, 2015 as an exhibit to the Company’s Form 10-Q for the quarter ended June 30, 2015 (File No. 001-31810).
|
|
(20)
|
Previously filed with the Securities and Exchange Commission on
November 7, 2016 as an exhibit to the Company’s Registration Statement on Form S-1 (File No. 333-214486).
|
|
(21)
|
Previously filed with the Securities and Exchange Commission on
September 8, 2016 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(22)
|
Previously filed with the Securities and Exchange Commission on
September 28, 2016 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(23)
|
Previously filed with the Securities and Exchange Commission on
August 15, 2016 as an exhibit to the Company’s Form 10-Q (File No. 001-31810).
|
|
(24)
|
Previously filed with the Securities and Exchange Commission on
July 19, 2016 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(25)
|
Previously filed with the Securities and Exchange Commission on
January 10, 2017 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(26)
|
Previously filed with the Securities and Exchange Commission on
December 23, 2016 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(27)
|
Previously filed with the Securities and Exchange Commission on
April 7, 2017 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(28)
|
Previously filed with the Securities and Exchange Commission on
June 29, 2017 as an exhibit to the Company’s Form 10-K (File No. 001-31810).
|
|
(29)
|
Previously filed with the Securities and Exchange Commission on
September 1, 2017 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(30)
|
Previously filed with the Securities and Exchange Commission on
October 2, 2017 as an exhibit to the Company’s Registration Statement on Form S-8 (File No. 333-220773).
|
|
(31)
|
Previously filed with the Securities and Exchange Commission on
November 6, 2017 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(32)
|
Previously filed with the Securities and Exchange Commission on
November 16, 2017 as an exhibit to the Company’s Form 10-Q (File No. 001-31810).
|
|
(33)
|
Previously filed with the Securities and Exchange Commission on
January 2, 2018 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(34)
|
Previously filed with the Securities and Exchange Commission on
April 4, 2018 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(35)
|
Previously filed with the Securities and Exchange Commission on
June 11, 2018 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(36)
|
Previously filed with the Securities and Exchange Commission on
December 7, 2018 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(37)
|
Previously filed with the Securities and Exchange Commission on
October 12, 2018 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(38)
|
Previously filed with the Securities and Exchange Commission on
October 17, 2013 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(39)
|
Previously filed with the Securities and Exchange Commission on
July 15, 2019 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(40)
|
Previously filed with the Securities and Exchange Commission on
July 16, 2019 as an exhibit to the Company’s Form 10-K (File No. 001-31810).
|
|
(41)
|
Previously filed with the Securities and Exchange Commission on
August 26, 2019 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(42)
|
Previously filed with the Securities and Exchange Commission on
December 5, 2019 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(43)
|
Previously filed with the Securities and Exchange Commission on
April 16, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(44)
|
Previously filed with the Securities and Exchange Commission on
May 21, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(45)
|
Previously filed with the Securities and Exchange Commission on
June 26, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(46)
|
Previously filed with the Securities and Exchange Commission on
November 16, 2020 as an exhibit to the Company’s Form 10-Q (File No. 001-31810).
|
|
(47)
|
Previously filed with the Securities and Exchange Commission on
November 23, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(48)
|
Previously filed with the Securities and Exchange Commission on
December 16, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(49)
|
Previously filed with the Securities and Exchange Commission on
July 6, 2020 as an exhibit to the Company’s Form 10-K (File No. 001-31810).
|
|
(50)
|
Previously filed with the Securities and Exchange Commission on
December 30, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(51)
|
Previously filed with the Securities and Exchange Commission on
February 3, 2021 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(52)
|
Previously filed with the Securities and Exchange Commission on
February 22, 2021 as an exhibit to the Company’s Form 10-Q (File No. 001-31810).
|
|
(53)
|
Previously filed with the Securities and Exchange Commission on
December 7, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(54)
|
Previously filed with the Securities and Exchange Commission on
September 4, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(55)
|
Previously filed with the Securities and Exchange Commission on
October 26, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(56)
|
Previously filed with the Securities and Exchange Commission on
July 16, 2020 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(57)
|
Previously filed with the Securities and Exchange Commission on
July 6, 2020 as an exhibit to the Company’s Registration Statement on Form S-3 (File No. 333-239710).
|
|
(58)
|
Previously filed with the Securities and Exchange Commission on
August 14, 2020 as an exhibit to the Company’s Form 10-Q (File No. 001-31810).
|
|
(59)
|
Previously filed with the Securities and Exchange Commission on
October 12, 2021 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(60)
|
Previously filed with the Securities and Exchange Commission on
August 10, 2021 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(61)
|
Previously filed with the Securities and Exchange Commission on
August 13, 2021 as an exhibit to the Company’s Form 8-K/A (File No. 001-31810).
|
|
(62)
|
Previously filed with the Securities and Exchange Commission on
September 17, 2021 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
|
(63)
|
Previously filed with the Securities and Exchange Commission on
September 9, 2021 as an exhibit to the Company’s Form 10-Q (File No. 001-31810).
|
|
(64)
|
Previously filed with the Securities and Exchange Commission on
July 30, 2021 as an exhibit to the Company’s Form 10-K (File No. 001-31810).
|
|
(65)
|
Previously filed with the Securities and Exchange Commission on
October 12, 2021 as an exhibit to the Company’s Form 8-K (File No. 001-31810).
|
(b)
Financial Statement Schedules.
Financial
statement schedules have been omitted, as the information required to be set forth therein is included in the Consolidated Financial
Statements or Notes thereto appearing in, or incorporated by reference into, the prospectus made part of this registration statement.
Item
17. Undertakings
Undertakings
Required by Regulation S-K, Item 512(a).
The
undersigned registrant hereby undertakes:
|
(1)
|
To file, during any period in which it offers or sells securities,
a post-effective amendment to this Registration Statement to:
|
|
(i)
|
include any prospectus required by Section 10(a)(3) of the Securities
Act;
|
|
(ii)
|
reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information in the registration statement. Notwithstanding the foregoing, any increase or decrease
in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any
deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in
the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration
statement; and
|
|
(iii)
|
include any material information with respect to the plan of distribution
not previously disclosed in the registration statement or any material change to such information in the registration statement.
|
|
(2)
|
That, for the purpose of determining liability under the Securities
Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
|
|
(3)
|
To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of the offering.
|
|
(5)
|
That, for the purpose of determining liability under the Securities
Act of 1933 to any purchaser:
|
|
(i)
|
Each prospectus filed by the registrant pursuant to Rule 424(b)(3)
shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration
statement; and
|
|
(ii)
|
Each prospectus required to be filed pursuant to Rule 424(b)(2),
(b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i),
(vii), or (x) for the purpose of providing the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to
be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness
or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability
purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the
registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of
such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement
made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser
with a time of contact of sale prior to such effective date, supersede or modify any statement that was made in the registration statement
or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date.
|
Undertakings
Required by Regulation S-K, Item 512(b).
The
undersigned registrant hereby undertakes that, for the purposes of determining any liability under the Securities Act of 1933, each filing
of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) the Securities Exchange Act of 1934 (and, where applicable,
each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that
is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
Undertaking
Required by Regulation S-K, Item 512(h).
Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons
of the registrant pursuant to any arrangement, provision or otherwise, the registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless
in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed
by the final adjudication of such issue.
SIGNATURES
Pursuant
to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf
by the undersigned, thereunto duly authorized, in the city of New York, state of New York, on October 13, 2021.
|
CINEDIGM CORP.
|
|
By:
|
/s/
Gary S. Loffredo
|
|
|
Gary
S. Loffredo
President,
Chief Operating Officer,
General Counsel and Secretary
|
POWER
OF ATTORNEY
KNOW
ALL MEN BY THESE PRESENTS, that each individual whose signature appears below hereby constitutes and appoints Christopher J. McGurk and
Gary S. Loffredo, and each of them individually, his true and lawful agent, proxy and attorney-in-fact, with full power of substitution
and resubstitution, for him and in his name, place and stead, in any and all capacities, to (i) act on, sign and file with the Securities
and Exchange Commission any and all amendments to the registration statement (which includes any additional registration statement under
Rule 462(b)) together with all schedules and exhibits thereto, (ii) act on, sign and file with the Securities and Exchange Commission
any and all exhibits to the registration statement and any and all exhibits and schedules thereto, (iii) act on, sign and file any and
all such certificates, applications, registration statements, notices, reports, instruments, agreements and other documents necessary
or appropriate in connection with the registration or qualification under foreign and state securities laws of the securities described
in the registration statement or any amendment thereto, or obtain an exemption therefrom, in connection with the offerings described
therein and (iv) take any and all such actions which may be necessary or appropriate in connection therewith, granting unto such agents,
proxies and attorneys-in-fact, and each of them individually, full power and authority to do and perform each and every act and thing
necessary or appropriate to be done, as fully for all intents and purposes as he or she might or could do in person, and hereby approving,
ratifying and confirming all that such agents, proxies and attorneys-in-fact, any of them or any of his or her or their substitute or
substitutes may lawfully do or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities
and on the dates indicated.
Signature(s)
|
|
Title(s)
|
|
Date
|
|
|
|
|
|
/s/ Christopher J. McGurk
|
|
Chief Executive Officer and Director
|
|
October 13, 2021
|
Christopher J. McGurk
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ John K. Canning
|
|
Chief Financial Officer
|
|
October 13, 2021
|
John K. Canning
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ Ashok Amritraj
|
|
Director
|
|
October 13, 2021
|
Ashok Amritraj
|
|
|
|
|
|
|
|
|
|
/s/ Peter C. Brown
|
|
Director
|
|
October 13, 2021
|
Peter C. Brown
|
|
|
|
|
|
|
|
|
|
/s/ Patrick O’Brien
|
|
Director
|
|
October 13, 2021
|
Patrick O’Brien
|
|
|
|
|
|
|
|
|
|
/s/ Peixin Xu
|
|
Director
|
|
October 13, 2021
|
Peixin Xu
|
|
|
|
|
II-11
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