Cinedigm Unveils Two Accretive Financing Transactions

Cinedigm, an independent content distributor, said it has completed two financial transactions aimed at further strengthening and simplifying its balance sheet.

First, on Dec. 22, the company agreed with an institutional holder of $3.4 million in the company’s 5.5% convertible notes due 2035.

This transaction exchanged the holder’s debt into 450,000 shares of its class A common stock and warrants to buy 200,000 shares of common stock exercisable six months after issuance, with a 5-year term, an exercise price of $1.60 per share and customary anti-dilution provisions. The exchange was consummated on Dec. 23 and the exchanged notes were immediately cancelled.

Second, on Dec. 23, the company agreed with another institutional holder to terminate their outstanding warrants to buy 1.8 million shares at an exercise price of $12.36 per share in exchange for minimal consideration. This exchange was also consummated on Dec. 23.

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