Chicken Soup for the Soul Entertainment Increases Share Repurchase Authorization to $20 Million

Rhea-AI Summary

Chicken Soup for the Soul Entertainment has increased its common stock repurchase program by $10 million, totaling $20 million. As of December 17, 2021, the company repurchased 675,365 shares for approximately $9.8 million. The board's decision reflects confidence in the company's growth strategy within the streaming industry. The firm aims to enhance shareholder value with this initiative, believing it will contribute positively to its position in the advertising-supported video-on-demand (AVOD) market.

Positive

• Increased stock repurchase program to $20 million enhances shareholder value.
• Demonstrates confidence in company growth and expansion plans.

Negative

• Funding the buyback may divert resources away from other potential investments.

Board Authorizes Additional $10 Million in Common Stock Repurchases in Addition to Previously Announced $10 Million Plan

COS COB, Conn., Dec. 20, 2021 (GLOBE NEWSWIRE) -- Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE), one of the largest operators of streaming advertising-supported video-on-demand (“AVOD”) networks, today announced that its board of directors approved of a $10 million increase in its common stock repurchase program, to a total of $20 million.

The initial $10 million authorization was approved in November 2021. As of December 17, 2021 the Company had repurchased 675,365 shares for approximately $9.8 million. The Company anticipates that any potential additional repurchase activity would be conducted opportunistically, in open-market transactions.

“Today’s increased authorization by the Board of Directors reflects confidence in the execution of our business plan, including the significant growth and expansion achieved in 2021. We are positioned to create significant shareholder value as we pursue our objective of building the best AVOD in a thriving streaming industry,” said Chris Mitchell, chief financial officer for Chicken Soup for the Soul Entertainment.

ABOUT CHICKEN SOUP FOR THE SOUL ENTERTAINMENT
Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE) (the “Company”) operates streaming video-on-demand networks (VOD). The Company owns Crackle Plus, which owns and operates a variety of ad-supported and subscription-based VOD networks including Crackle, Chicken Soup for the Soul, Popcornflix, Popcornflix Kids, Truli, Pivotshare, Españolflix and FrightPix. The Company also acquires and distributes video content through its Screen Media subsidiary and produces original video content through the Chicken Soup for the Soul Television Group. 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 within the meaning of the federal securities laws. Forward-looking statements are statements that are not historical facts. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management and are not predictions of actual performance. Such assumptions involve a number of known and unknown risks and uncertainties, including but not limited to our core strategy, operating income and margin, seasonality, liquidity, including cash flows from operations, available funds, and access to financing sources, free cash flows, revenues, net income, profitability, stock price volatility, future regulatory changes, price changes, the ability of the Company’s content offerings to achieve market acceptance, the Company’s success in retaining or recruiting officers, key employees, or directors, the ability to protect intellectual property, the ability to complete strategic acquisitions, the ability to manage growth and integrate acquired operations, the ability to pay dividends, regulatory or operational risks, and general market conditions impacting demand for the Company’s services. For a more complete description of these and other risks and uncertainties, please refer the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 31, 2021, and for further information regarding our recent acquisition of the Sonar library and related assets, please see our Current Reports on Form 8-K, as amended, filed with the SEC on May 27, 2021 and July 1, 2021. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and the Company expressly disclaims any obligation 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.

INVESTOR RELATIONS
Taylor Krafchik
Ellipsis
CSSE@ellipsisir.com 
646-776-0886

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

FAQ

What is the recent stock buyback program for CSSE?

Chicken Soup for the Soul Entertainment has authorized an increase in its stock buyback program to $20 million.

When was the stock buyback program announced?

The additional $10 million stock repurchase plan was announced on December 20, 2021.

What impact will the buyback have on CSSE stock price?

The buyback is expected to positively impact CSSE stock price by reducing share supply and enhancing shareholder value.

How many shares has CSSE repurchased so far?

As of December 17, 2021, CSSE has repurchased 675,365 shares for approximately $9.8 million.