Cinedigm Corp. (NASDAQ:CIDM) Files An 8-K Entry into a Material Definitive Agreement

Cinedigm Corp. (NASDAQ:CIDM) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.

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On July 20, 2018, Cinedigm Corp. (the “Company”) entered into a term loan agreement (the “Loan Agreement”) with Bison Global Investment SPC for and on behalf of Global Investment SPC-Bison Global No. 1 (the “Lender”), to which the Company borrowed from the Lender $10,000,000 (the “Loan”). The Loan has a one (1) year term that may be extended by mutual agreement of Bison and the Corporation and bears interest at 5% per annum, payable quarterly in cash,. The principal is payable upon maturity. The Loan is unsecured and may be prepaid without premium or penalty at the election of the Company or upon demand of the Lender, and contains customary covenants, representations and warranties. The proceeds of the Loan will be used to prepay the 2017 Loan, as defined below. The Loan is evidenced by a note dated as of July 20, 2018 (the “Note”). On July 20, 2018, the Corporation also entered into a side letter (the “Letter”) with Bison Entertainment and Media Group (“BEMG”), to which BEMG agreed to make immediate payment directly to the Lender of any amount due if (i) the Loan matures prior to June 28, 2021 or (ii) the Lender demands payment of the Loan, in whole or in part, by the Lender prior to maturity.

On July 20, 2018, the Company entered into a termination agreement (the “Termination Agreement”) with respect to the term loan agreement (the “2017 Loan Agreement”) with BEMG, to which the Company had borrowed from BEMG $10,000,000 (the “2017 Loan”). to the Termination Agreement, an amount equal to the outstanding principal and accrued and unpaid interest thereon was paid in full, and the 2017 Loan Agreement was terminated, on July 23, 2018. No early payment penalties were incurred.

The Loan, offset by the concurrent payoff and termination of the 2017 Loan, did not result in any increase to the Company’s outstanding debt balance.

The foregoing descriptions of the Loan Agreement, the Note, the Letter and the Termination Agreement are qualified in their entirety by reference to such documents, which will be filed in accordance with SEC rules and regulations.

Item 1.02. Termination of a Material Definitive Agreement.

The information set forth under Item 1.01 above is incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 above is incorporated herein by reference.

About Cinedigm Corp. (NASDAQ:CIDM)

Cinedigm Corp. is a distributor and aggregator of independent movie, television and other short form content managing a library of distribution rights to a range of titles and episodes released across various platforms. The Company’s segments include the first digital cinema deployment (Phase I Deployment), the second digital cinema deployment (Phase II Deployment), digital cinema services (Services), and media content and entertainment group (Content & Entertainment). The Phase I Deployment and Phase II Deployment segments are the non-recourse, financing vehicles and administrators for its digital cinema equipment (the Systems) installed in movie theatres. The Services segment provides fee-based support to over 12,000 movie screens in its Phase I Deployment and Phase II Deployment segments. Its Content & Entertainment segment is engaged in ancillary market aggregation and distribution of entertainment content, and branded and curated over-the-top (OTT) digital network business.

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