Chicken Soup for the Soul Entertainment Inc. (Nasdaq: CSSE), the purveyor of self-help books and owner of DVD rental firm Redbox Entertainment Inc., is considering issuing new preferred equity among a range of options to stave off a cash crunch, according to Bloomberg News.
The media company has held discussions with potential investors over the potential equity raise, reported Bloomberg. It’s also considered raising new debt as well as asset sales, regulatory filings show. The company had around $4.1 million of cash as of Sept. 30, and has struggled to service $360 million of debt it took on as part of its combination with Redbox, the company said. It had predicated its ability to service the debt on movie releases returning closer to pre-pandemic levels as well as cost savings. After failing to close a new loan last year, Chicken Soup for the Soul wasn’t able to purchase all the movies it was offered, further hampering its performance.