Heat Turned Up On Chicken Soup For The Soul; Shares Of Redbox And Crackle Parent Plunge 40% On News Of Capital Raise, Q4 Red Ink
deadline.comChicken Soup for the Soul Entertainment’s stock plunged more than 40% in early trading Friday after the parent company of Redbox, Crackle and Screen Media announced a capital raise and reported fourth-quarter net losses.
The quarterly red ink had been expected, but the more surprising news was a $10.8 million common stock equity offering, including $3.8 million from corporate parent Chicken Soup for the Soul Holdings.
The capital raise is designed to help the company navigate a challenging period. The offering was disclosed Thursday, but not its pricing, as the company decided to postpone its earnings release and conference call with Wall Street analysts.
Those moves had sent shares tumbling in after-market trading Thursday, and that trend continued into Friday’s regular session, with the stock falling below $1.90 to an all-time low.
Read more on deadline.com