Chicken Soup for the Soul sinks on deep-discounted stock offering

Chicken Soup for The Soul Entertainment

31/03/2023 13:15

** Chicken Soup for the Soul Entertainment Inc's  CSSE.O 
shares sinking ~30% to $2.23 premarket as co raises equity at
steep discount
    ** Shares set to open at record low, if losses hold
    ** Video-on-demand streamer prices ~4.7 mln shares at $2.30,
28% discount to stock's Thurs close, for ~$10.8 mln raise
    ** Co's parent buys ~1.6 mln shares of the offering for
~$3.8 mln
    ** CSSE plans to use net proceeds for working capital,
general purposes
    ** Alongside offering launch late Thurs, co reported Q4 rev
more than tripled to ~$114 mln, while net loss widened to ~$56
mln from ~$22 mln a yr-ago
    ** CSSE has ~21.7 mln shares outstanding and 13 mln shares
of free float, per Refinitiv data
    ** Shares have lost 37.5% YTD through Thurs amid 62% decline
over past 12 months
    ** Craig-Hallum sole underwriter for stock offering

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))