Cinedigm Seeking Digital-Savvy Board Members18 May, 2015 By: Erik Gruenwedel
Cinedigm says its future lies with over-the-top video, in addition to traditional packaged-media distribution. And thus, the indie distributor is looking for a few good digital board members.
To help ensure forays into digital distribution (and mollify anxious investors), Cinedigm May 18 said it intends to add up to four new board members, including a new chairman — the latter position currently held by CEO Chris McGurk.
Cinedigm retained consulting firm Korn Ferry to help in the search for new candidates.
In recent months, the company launched OTT video service CONtv, plans to launch the faith and family Dove Channel, and grow the documentary-focused channel Docurama, among other initiatives.
“We plan to add talented directors that match our current lines of business, to guide their growth,” McGurk said in a statement.
The indie distributor last month found itself in hot water following a poorly-received (by some investors) private debt offering of $64 million. Cinedigm said the funds would help pay off an existing loan, buy back shares, deal with ongoing litigation surrounding acquisition of Gaiam Vivendi Entertainment and fund rollout of OTT video, among other initiatives.
Yet, with company shares trading below $1 following the funding announcement, investor pressure prompted Cinedigm to act.
The new board members would be experienced in television, OTT, social media, marketing, entertainment, capital markets or other related fields. Two of the new members will replace board positions currently held by COO Adam Mizel and general counsel Gary Loffredo. McGurk, Mizel and Loffredo are staying with the company in their positions, according to a spokesperson.
Wayne Clevenger of MidMark Capital will retire from the board prior to the company’s next shareholder meeting.
Cinedigm said it is not planning to increase the size of the board from eight members, but may “adjust” for additional qualified nominees or the “potential departure” of current independent directors.
“Now is the time to strengthen our board with highly-qualified individuals that have significant public board experience and relevant expertise in our core and growth businesses,” Peter Brown, lead independent director, said in a statement.