UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Title of each class | Ticker symbol(s) | Name of each exchange on which registered | ||
The | ||||
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The Stock Market LLC |
Item 3.02. | Unregistered Sales of Equity Securities |
As previously disclosed, on August 11, 2022, in connection with its acquisition of Redbox Entertainment, Inc. (the “Acquisition”) consummated as of such date (the “Closing”), Chicken Soup for the Soul Entertainment, Inc. (the “Company”) entered into an Amended and Restated Credit Agreement (“HPS Credit Agreement”) by and among the Company, as primary borrower, Redbox Automated Retail LLC, as co-borrower (“Redbox Automated”), the Lenders named therein, and HPS Investment Partners LLC, as administrative agent and collateral agent (“HPS”). In connection with the HPS Credit Agreement, the Company issued HPS and affiliates a five-year warrant (“HPS Warrant”) to purchase up to an aggregate of 1,011,530 shares of the Company’s Class A common stock, par value $0.0001 per share (the “Company Class A Common Stock”), at a per-share exercise price of $0.0001. The HPS Warrant included customary cashless exercise provisions. The HPS Warrant is governed by the Warrant Agreement (the “Warrant Agreement”), dated as of August 11, 2022, by and between the Company and HPS lenders signatory thereto. The Company also granted registration rights to HPS under which the Company was required to, among other actions, within 30 days of the Closing, file a registration statement on Form S-3 with respect to the shares of Company Class A Common Stock issuable upon exercise of the HPS Warrant. The obligations of the Company and its subsidiary guarantors under the HPS Credit Agreement were secured by a first priority lien in substantially all of the assets of the Company and its subsidiaries, subject to certain exceptions.
Pursuant to valid warrant exercise notice, on September 9, 2022, the Company issued 1,011,530 shares of Company Class A Common Stock (after giving effect to the cashless exercise for avoidance of doubt) in respect of the exercise of the HPS Warrant. The shares were issued in reliance on an exemption from the registration requirements of the Securities Act of 1933 as amended (the “Act”). Such issuance satisfied the Company’s obligations under the HPS Warrant and Warrant Agreement and therefore had the effect of terminating the HPS Warrant and Warrant Agreement respectively pursuant to their respective terms. The Company has filed a registration statement on Form S-3 with respect to such issued shares of Company Class A Common Stock in accordance with the registration rights described above.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits: |
Exhibit Number |
Description | |
4.2† | HPS Warrant Agreement, dated as of August 11, 2022 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on August 12, 2022). | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
† | Certain of the exhibits and schedules to this agreement have been omitted in accordance with Regulation S-K Item 601(a)(5). The Company agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: September 9, 2022 | CHICKEN SOUP FOR THE SOUL ENTERTAINMENT INC. | |
By: | /s/ William J. Rouhana, Jr. | |
Name: William J. Rouhana, Jr. | ||
Title: Chief Executive Officer |