Cinedigm Announces Another Accretive Convertible Debt Exchange to Further Strengthen Balance Sheet
LOS ANGELES--(BUSINESS WIRE)--
Cinedigm Corp. (NASDAQ: CIDM) (the "Company") today announced that it
has executed another accretive financial exchange transaction as part of
its overall strategy to further strengthen its balance sheet.
On February 17, 2017, Cinedigm entered into an exchange agreement in
which the Company agreed to issue 675,000 shares of its Class A common
stock and notes in the principal amount of $2,100,000 pursuant to the
Company's Second Lien Loan Agreement entered into in July 2016 in
exchange for $6,000,000 of the Company's 5.5% Convertible Notes, saving
$172,500 per year in cash interest expense.
This exchange transaction follows the accretive exchange earlier this
month of $4,000,000 of Convertible Notes for common stock and warrants,
saving $115,000 per year in interest expense. Additionally, in December,
2016, the Company entered into an exchange agreement for
another $3,429,000 of the Company's Convertible Notes for common stock
and warrants, saving $188,595 per year in cash interest expense.
In total, through these three accretive transactions, the Company has
now retired $13,429,000 of its Convertible Notes or approximately 21% of
the total Notes balance, saving $476,095 in annual cash interest expense.
"These accretive exchange transactions continue to strengthen our
balance sheet and set up our operations for enhanced profitability,"
said Chris McGurk, Cinedigm's Chairman and CEO. "We continue to make
progress in lining up additional debt exchange opportunities."
Cinedigm is a leading independent content distributor in the United
States, with direct relationships with thousands of physical retail
storefronts and digital platforms, including Wal-Mart, Target, iTunes,
Netflix, and Amazon, as well as the national Video on Demand platform on
Additionally, given Cinedigm's infrastructure, technology, content and
distribution expertise, the Company has rapidly become a leader in the
quickly evolving over-the-top digital network business. Cinedigm's first
channel, DOCURAMA, launched in May 2014, and is currently available on
iOS, Roku, Xbox and Samsung, with additional platforms currently being
rolled out. Cinedigm launched CONtv, a Comic Con branded channel, on
March 3, 2015. The Company's third OTT channel, DOVE CHANNEL, launched
on September 15, 2015 and is a digital streaming subscription service
targeted to families and kids seeking high quality and family friendly
content approved by Dove Foundation.
Cinedigm™ and Cinedigm Digital Cinema Corp™ are trademarks of Cinedigm
View source version on businesswire.com: http://www.businesswire.com/news/home/20170221005314/en/
Jill Newhouse Calcaterra, 310-466-5135
Source: Cinedigm Corp.
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