IT News Online – Cinedigm closes registered direct offer of $ 7.0 million, plans to use part of the proceeds to pay off any remaining second debt

The proceeds of the offer will also be used for the acquisition of content and streaming channels

LOS ANGELES, CA / ACCESSWIRE / February 5, 2021 / Cinedigm Corp. (NASDAQ: CIDM) (“Cinedigm” or the “Company”), today announced that it has completed the sale of 5,600,000 Class A common shares at a purchase price of $ 1.25 per share in connection with ” a direct offer registered to a single institutional investor.

The Company plans to use the proceeds of the sale to repay the remainder of approximately $ 3.2 million of senior debt and for the acquisition of content and streaming channels, in addition to other uses. general company policies. After repayment of the remaining senior debt, the Company’s only recourse debt will be its revolving credit facility with East West Bank, an asset-backed loan that currently has a balance of less than $ 3 million and a rate interest of 3.75%.

This reduction in second-tier loans is the latest step in Cinedigm’s initiative to significantly reduce its debt and interest expense. Since December 31, 2019, the Company has reduced its aggregate debt by $ 35.0 million, or 68%. During this period, the Company converted $ 15 million in convertible equity notes at $ 1.50 per share, reduced the sub-loans from $ 8.1 million to zero, reduced our revolving loan based on assets of $ 13.5 million, or 85%, to $ 2.7 million, and reduced non-recourse legacy movie equipment commercial debt of $ 523,000 to the current balance of $ 12 million .

The proceeds from this offering will also be used to accelerate Cinedigm’s continuous acquisition strategy. This closely follows Cinedigm’s recent acquisitions of Fandor, the world’s leading subscription independent film streaming service with the largest collection of international independent films, documentaries and feature films on the market and called “The Netflix for Indie Film” by The Wall Street Journal. At the end of December 2020, the Company also acquired The movie detective, a leading content distributor and streaming channel focused on classic film and television programming. The company plans to continue to execute this deployment strategy using this new funding, acquiring additional streaming channels supported by enthusiasts who can immediately benefit from the scale, content library, Cinedigm’s distribution, infrastructure and technical prowess.

“Following this registered direct offer and the scheduled repayment of all remaining senior debt, our balance sheet will be stronger than ever,” said Gary Loffredo, President and COO of Cinedigm. “We will now be virtually debt free with a small revolving credit facility with a very favorable interest rate. Equally important, we will have the firepower of treasury and balance sheet to continue the rapid execution of our continuous roll-up strategy, with more impactful, accretive and positive acquisition targets for treasury as well as The movie detective and Fandor which will immediately benefit from Cinedigm’s streaming technology, distribution reach, infrastructure and digital content library. “

About Cinedigm

Since its inception, Cinedigm (CIDM) has been a leader at the forefront of the digital transformation of content distribution. Adapting to the rapidly changing business needs of today’s entertainment landscape, Cinedigm remains a change-centric player focused on delivering content, channels and services to the world’s largest media, technology and retail companies. retail to the world. Cinedigm’s Content and Networks groups provide original and aggregated programming, channels and services that entertain consumers around the world on hundreds of millions of devices. For more information, visit

Cinedigm uses and will continue to use its website, press releases, SEC filings, and various social media channels, including Twitter (, LinkedIn (, Facebook (, StockTwits ( and the website of the Company ( as an additional means of disclosing public information to investors, the media and others interested in the Company. Certain information that the Company publishes on its website, in press releases, in documents filed with the SEC and on social media may be considered material information, and the Company encourages investors, the media. and others interested in the Company in reviewing the business and financial information that the Company publishes on its website, disseminates in press releases, documents filed with the SEC and on the social media channels identified above, as this information could be considered important information. For more information, visit

Forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Words such as “expects”, “anticipates”, “intention”, “plans”, “believes”, “research”, “estimates” and similar expressions or variations of these words are intended to identify forward-looking statements. For example, Cinedigm uses forward-looking statements in this press release when discussing the expected timing of the closing of the offering. Since these statements deal with future events and are based on Cinedigm’s current expectations, they are subject to various risks and uncertainties, and Cinedigm’s actual results, performance or achievements could differ materially from those described or implied by the statements contained in this press release.

Forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under “Risk Factors” in Cinedigm’s Annual Report on Form 10-K filed with the SEC on July 6, 2020, and in any subsequent filing with the SEC. Unless otherwise required by law, Cinedigm does not undertake to publish revisions of these forward-looking statements to reflect events or circumstances subsequent to the date hereof or to reflect the occurrence of unforeseen events. References and links to websites have been provided as a convenience, and information contained on such websites is not incorporated by reference in this press release. Cinedigm is not responsible for the content of third party websites.

Press contact for the CIDM:

Jill Calcaterra

THE SOURCE: Cinedigm Corp.

See the source version on Remaining-Second-Privilege-Debt

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