Cinedigm Receives NASDAQ Reprieve17 Feb, 2016 By: Erik Gruenwedel
Cinedigm Feb. 17 announced it has received notice from the NASDAQ listing qualifications panel allowing it to continue listing on the market board. The listing is contingent upon Cinedigm maintaining a minimum $1 per share valuation for 10 consecutive business days by June 7.
The home entertainment distributor found itself in hot water last summer following a poorly received (by some investors) private debt offering. Cinedigm said the funds would help pay off an existing loan, buy back shares, deal with ongoing litigation and fund the rollout of OTT video, among other initiatives.
Investors didn’t agree, sending shares trading below $1 and prompting a NASDAQ delisting warning.
Cinedigm, which saw shares close Feb. 17 at 24 cents, said it would meet compliance following implementation of a reverse stock split. The company said it has obtained shareholder approval of a reverse stock split up to 1 to 10 through October.
The company last year launched three subscription-based over-the-top video platforms, including family-friendly Dove Channel, documentary-based platform Docurama and CONtv, which focuses on content associated with Comic-Con.