By Will Feuer
Chicken Soup for The Soul Entertainment said it is suspending the payment of monthly cash dividends on its series A preferred stock as the Redbox owner looks to preserve cash and lift its stock price.
The company said in a securities filing that the suspension will defer about $1.2 million in dividend payments each month.
Chicken Soup also said it plans to make a roughly $1.1 million special payment on its notes due 2025. The company said that represents all accrued and unpaid interest that was due and not paid to the noteholders on the original interest payment due date of Jan. 2.
The company has received notices from the Nasdaq that it is not in compliance with listing rules because both its stock price and market value are too low. The company’s stock price has been struggling since its 2022 takeover of DVD-rental kiosk company Redbox, an acquisition that saddled Chicken Soup with debt.
Write to Will Feuer at [email protected]
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