Cinedigm Raises $2.5 Million in Second-Lien Loans19 Sep, 2016 By: Erik Gruenwedel
Cinedigm Corp. Sept. 19 announced it sold $2.5 million in loans, in addition to 245,000 shares of common stock. The shares were sold to individual investors, including board members Ronald Chez and CEO Chris McGurk.
The transaction, which brings to $4.5 million in total loans closed, was part of the distributor’s second-lien loan agreement disclosed in a July financial filing.
Cinedigm said it would use the funds to support ongoing subscription video-on-demand platforms Dove Channel, Docurama and CONtv, in addition to working capital and general corporate purposes.
The company reported a net loss of $4.6 million in its most recent fiscal period on revenue of $22.4 million, which included $6.8 million in content and entertainment from the distribution of both packaged and digital media.