UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a)
of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant x
Filed by a Party other than the Registrant ¨
Check the appropriate box:
| ¨ | Preliminary Proxy Statement |
| ¨ | Confidential, for Use of the Commission Only (as permitted
by Rule 14a-6(e)(2)) |
| ¨ | Definitive Proxy Statement |
| ¨ | Definitive Additional Materials |
| x | Soliciting Material under §240.14a-12 |
REDBOX
ENTERTAINMENT INC.
(Name of Registrant as Specified
In Its Charter)
(Name of Person(s) Filing Proxy
Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
| ¨ | Fee paid previously with preliminary materials. |
| ¨ | Fee computed on table in exhibit required by Item 25(b) per
Exchange Act rules 14a6(i)(1) and 0-11 |
On May 10, 2022 Chicken Soup for the Soul Entertainment, Inc. (Nasdaq:
CSSE) and Redbox Entertainment Inc. (Nasdaq: RDBX) entered into a definitive agreement, pursuant to which Chicken Soup for the Soul Entertainment
will acquire Redbox. In connection with the merger, Redbox distributed the following email communication to business partners and retailers
on or about May 12, 2022.
RDBX Business Partner / Retailer Email – Chicken Soup for
the Soul Entertainment Announcement
From: Galen C. Smith, CEO
Subject: Redbox to Merge with Chicken Soup for the Soul Entertainment
Dear Valued Partner,
I am reaching out to share some important news. This morning, we announced
that Redbox has agreed to combine with Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE).
We believe this is a terrific combination that will unite two entertainment
providers with a shared vision of providing affordable content across the physical and digital ecosystems.
Like Redbox, Chicken Soup for the Soul Entertainment recognizes that
the TV experience is fragmented, expensive and confusing for consumers. Together, we are well positioned to solve this dilemma. With our
footprint of more than 38,000 kiosks, diverse content libraries and combined streaming platforms, we will be well positioned to deliver
consumers a wealth of high-quality entertainment options.
Importantly, Chicken Soup for the Soul Entertainment recognizes the
value of Redbox’s expansive kiosk footprint and the relationships we have built with retail partners like you. Together, we expect
to continue to leverage this network to deliver affordable content conveniently to consumers where they already shop.
Of course, today’s announcement represents only the start of
the process to combine Chicken Soup for the Soul Entertainment and Redbox. We expect to complete the transaction in the second half of
2022, and until then Redbox and Chicken Soup for the Soul Entertainment will remain separate, independent companies.
We continue to operate as usual and are committed to our partnership
– all existing contracts and agreements remain in place and will continue to after the closing. We will continue to work closely
with you to ensure our relationship is mutually beneficial. Of course, please reach out to your normal Redbox contact if you have any
questions.
Thank you for your continued partnership and support. We look forward
to embarking on this next chapter with you.
Sincerely,
Galen C. Smith
CEO
Redbox
###
Forward-Looking Statements
This communication relates to a proposed
business combination transaction between Chicken Soup for the Soul Entertainment, Inc. (“CSSE”) and Redbox
Entertainment, Inc. (“RDBX”). This communication contains “forward-looking statements” within the meaning of
the federal securities laws. Forward-looking statements address a variety of subjects, including, for example, projections as to the
anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on the combined
organization’s business and future financial and operating results, the expected amount and timing of synergies from the
proposed transaction, and the anticipated closing date for the proposed transaction. Statements that are not historical facts,
including statements about CSSE’s and RDBX’s beliefs, plans and expectations, are forward-looking statements. Such
statements are based on CSSE’s and RDBX’s current expectations and are subject to a number of factors and uncertainties,
which could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking
statements often contain words such as “expect,” “anticipate,” “intend,” “plan,”
“believe,” "will," “estimate,” “would,” “target” and similar expressions,
as well as variations or negatives of these words. The following important factors and uncertainties, among others, could cause
actual results to differ materially from those described in these forward-looking statements: the uncertainty as to the extent of
the duration, scope and impacts of the COVID-19 pandemic; political and economic uncertainty, including any faltering in global
economic conditions or the stability of credit and financial markets, erosion of consumer confidence and declines in customer
spending; unavailability of raw materials, services, supplies or manufacturing capacity; changes in geographic scope or product or
customer mix; changes in export classifications, import and export regulations or duties and tariffs; changes in CSSE’s or
RDBX’s estimates of their expected tax rate based on current tax law; CSSEs ability to successfully integrate RDBX’s
businesses and technologies; the risk that the expected benefits and synergies of the proposed transaction and growth prospects of
the combined company may not be fully achieved in a timely manner, or at all; adverse results in litigation matters, including the
potential for litigation related to the proposed transaction; the risk that CSSE or RDBX will be unable to retain and hire key
personnel; the risk associated with CSSE’s and RDBX’s ability to obtain the approvals of their respective stockholders
required to consummate the proposed transaction and the timing of the closing of the proposed transaction, including the risk that
the conditions to the transaction are not satisfied on a timely basis or at all or the failure of the transaction to close for any
other reason or to close on the anticipated terms, including the anticipated tax treatment; the risk that any regulatory approval,
consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that
are not anticipated; unanticipated difficulties or expenditures relating to the transaction, the response of business partners and
retention as a result of the announcement and pendency of the transaction; uncertainty as to the long-term value of CSSE’s
common stock; and the diversion of management time on transaction-related matters. These risks, as well as other risks related to
the proposed transaction, will be included in the registration statement on Form S-4 and proxy statement/prospectus that will be
filed with the Securities and Exchange Commission (the “SEC”) in connection with the proposed transaction. While the
list of factors presented here is, and the list of factors to be presented in the registration statement on Form S-4 are, considered
representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For
additional information about other factors that could cause actual results to differ materially from those described in the
forward-looking statements, please refer to CSSE’s and RDBX’s respective periodic reports and other filings with the
SEC, including the risk factors contained in CSSE’s and RDBX’s most recent Quarterly Reports on Form 10-Q and Annual
Reports on Form 10-K. Forward-looking statements represent management’s current expectations and are inherently uncertain and
are made only as of the date hereof. Except as required by law, neither CSSE nor RDBX undertakes or assumes any obligation to update
any forward-looking statements, whether as a result of new information or to reflect subsequent events or circumstances or
otherwise.
No Offer or Solicitation
This communication is not intended to and shall
not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or
approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by
means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
Additional Information and Where to Find It
In connection with the proposed transaction,
CSSE intends to file with the SEC a registration statement on Form S-4 that will include a proxy statement of RDBX and that
also constitutes a prospectus and Information Statement of CSSE. Each of CSSE and RDBX may also file other relevant documents with the SEC regarding
the proposed transaction. This document is not a substitute for the proxy statement/Information Statement/prospectus or registration
statement or any other document that CSSE or RDBX may file with the SEC. The definitive proxy statement/Information Statement/prospectus
(if and when available) will be mailed to stockholders of CSSE and RDBX. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION
STATEMENT, PROXY STATEMENT/INFORMATION STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS
WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY
CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free
copies of the registration statement and proxy statement/Information Statement/prospectus (if and when available) and other documents
containing important information about CSSE, RDBX and the proposed transaction, once such documents are filed with the SEC through
the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by
CSSE will be available free of charge on CSSE’s website at https://ir.cssentertainment.com/ or by contacting
CSSE’s Investor Relations Department by email at csse@ellipsisir.com or by phone at 646-776-0886. Copies of the documents
filed with the SEC by RDBX will be available free of charge on RDBX’s website at https://investors.redbox.com/
or by contacting Zaia Lawandow at zaia.lawandow@redbox.com.
Certain Information Regarding Participants
in the Solicitation
CSSE, RDBX and certain of their respective directors
and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information
about the directors and executive officers of CSSE, including a description of their direct or indirect interests, by security holdings
or otherwise, is set forth in CSSE’s proxy statement for its 2021 annual meeting of stockholders, which was filed with the SEC
on April 30, 2021, and CSSE’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the
SEC on March 31, 2022 and on its website at https://ir.cssentertainment.com/. Information about executive officers of RDBX,
including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in RDBX’s proxy
statement for its 2021 annual meeting of stockholders, which was filed with the SEC on October 15, 2021, and RDBX’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on April 15, 2022 and on its website at https://investors.redbox.com/.
Information about the directors of RDBX and other participants in the proxy solicitations, , will be contained in the proxy statement/prospectus
and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors
should read the proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You
may obtain free copies of these documents from CSSE or RDBX using the sources indicated above.
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