Chicken Soup for the Soul Entertainment Announces the Partial Exercise of Underwriters’ Option to Purchase Additional Notes Due 2025

Rhea-AI Summary

Chicken Soup for the Soul Entertainment (Nasdaq: CSSE) has announced the partial exercise of an over-allotment option by underwriters for its recent public offering of 9.50% Notes due 2025, securing an additional $1.1 million in principal. This raises net proceeds to $1,045,000 after expenses. The Notes are rated BBB and trade under the ticker symbol "CSSEN," with interest payments commencing on September 30, 2020. The company can redeem the Notes from July 31, 2022, at par plus accrued interest.

Positive

• Raised additional $1.1 million through over-allotment of Notes.
• Net proceeds increased to $1,045,000 after expenses.
• Notes rated BBB by Egan-Jones Ratings Company.
• Interest payments to be made quarterly beginning September 30, 2020.

Negative

• None.

COS COB, Conn., Aug. 05, 2020 (GLOBE NEWSWIRE) -- Chicken Soup for the Soul Entertainment Inc. (Nasdaq: CSSE) (the “Company”), one of the largest operators of streaming advertising-supported video-on-demand (AVOD) networks, today announced that the underwriters of its recent public offering of 9.50% Notes due 2025 (“Notes”) have partially exercised their over-allotment option by purchasing an additional $1.1 million principal amount of Notes. Closing of the partial exercise of the over-allotment option was completed today, generating net proceeds to the Company of $1,045,000 after deducting the Underwriters’ discounts, commissions and certain expenses.

The Notes have been listed on the Nasdaq Capital Market and trade under the ticker symbol “CSSEN”. The Notes are not convertible into or exchangeable for any of the Company’s other securities. Interest payments will be made quarterly in arrears on March 31, June 30, September 30, and December 31 each year, beginning September 30, 2020. The Company can redeem the Notes, in whole or in part, at any time on or after July 31, 2022 or upon a change of control at the redemption price of par plus accrued interest. The Notes are rated BBB by Egan-Jones Ratings Company.

Ladenburg Thalmann & Co. Inc. and National Securities Corporation, a wholly-owned subsidiary of National Holdings, Inc. (Nasdaq: NHLD) acted as joint book-running managers of the offering. The Benchmark Company and Northland Capital Markets, acted as lead managers.

A registration statement on form S-1 (SEC File No. 333-239198) (“Registration Statement”) relating to the Notes was filed with the U.S Securities and Exchange Commission (the “SEC”) and is effective and available on the SEC’s website at www.sec.gov. Copies of the final prospectus may be obtained electronically from the Securities and Exchange Commission at www.sec.gov or from any of the underwriters, including the offices of:

Ladenburg Thalmann & Co.
Attn: Syndicate Department
277 Park Avenue, 26th Floor
New York, NY 10172
212-409-2000
Email: prospectus@ladenburg.com

National Securities Corporation
Attn: Charles Wanyama
200 Vesey Street, 25^th Floor
New York, NY 10281
212-417-3634
Email: cwanyama@yournational.com

The Benchmark Company, LLC
Attn: Prospectus Department
150 E 58th Street, 17th floor
New York, NY 10155
212-312-6700
Email: prospectus@benchmarkcompany.com

Northland Capital Markets
Attn: Heidi Fletcher
150 South Fifth Street, Suite 3300
Minneapolis, MN 55402
800-851-2920
Email: hfletcher@northlandcapitalmarkets.com

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT CHICKEN SOUP FOR THE SOUL ENTERTAINMENT
Chicken Soup for the Soul Entertainment Inc. (Nasdaq: CSSE) operates streaming video-on-demand networks (VOD). The Company owns a majority stake in Crackle Plus, a company formed with Sony Pictures Television, which owns and operates a variety of ad-supported and subscription-based VOD networks including Crackle, Popcornflix, Popcornflix Kids, Truli, Pivotshare, Españolflix and FrightPix. The Company also acquires and distributes video content through its Screen Media subsidiary and produces original long and short-form content through Landmark Studio Group, its Chicken Soup for the Soul Originals division and APlus.com. Chicken Soup for the Soul Entertainment is a subsidiary of Chicken Soup for the Soul, LLC, which publishes the famous book series and produces super-premium pet food under the Chicken Soup for the Soul brand name.    

FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks (including those set forth in the Registration Statement) and uncertainties which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Investors should realize that if our underlying assumptions for the projections contained herein prove inaccurate or that known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections.

INVESTOR RELATIONS
Taylor Krafchik
Ellipsis
csse@ellipsisir.com
(646) 776-0886

MEDIA CONTACT
Kate Barrette
RooneyPartners LLC
kbarrette@rooneyco.com
(212) 223-0561

FAQ

What is Chicken Soup for the Soul Entertainment's recent financial announcement regarding CSSE?

The company announced a partial exercise of its over-allotment option, raising an additional $1.1 million through its 9.50% Notes due 2025.

What is the significance of the 9.50% Notes due 2025 for CSSE?

These Notes provide CSSE with additional capital of $1,045,000 after expenses, strengthening its financial position.

When will Chicken Soup for the Soul Entertainment start making interest payments on its Notes?

Interest payments on the Notes will commence on September 30, 2020.

What is the ticker symbol for the Notes issued by Chicken Soup for the Soul Entertainment?

The Notes are traded under the ticker symbol 'CSSEN' on the Nasdaq Capital Market.

What is the rating of Chicken Soup for the Soul Entertainment's Notes?

The Notes are rated BBB by Egan-Jones Ratings Company.