OAKBROOK TERRACE, Ill.–(BUSINESS WIRE)–Redbox Entertainment Inc. (NASDAQ: RDBX) (“Redbox” or the “Company”) today announced that Redbox shareholders have approved the proposed merger as part of the previously announced merger with Chicken Soup for Soul Entertainment Inc. (NASDAQ: CSSE) (“CSSE”).
At the special meeting of shareholders of Redbox held today, a total of 40,837,113 ordinary shares of Redbox, representing approximately 87.9% of the outstanding ordinary shares of Redbox entitled to vote at the special meeting, were present. in person or by proxy, and 39,503,634 of the votes cast were cast in favor of the Redbox merger proposal, such votes representing approximately 85.04% of the outstanding common shares of Redbox eligible to vote at the special meeting .
Redbox is an established brand and a leading provider in the US home entertainment market. Redbox is committed to providing its customers with the best value in entertainment and the most choice in how they consume it, through physical media and/or digital services. Redbox is experiencing significant business expansion and digital transformation. Redbox has grown from a pure-play DVD rental company to a multi-faceted entertainment company that offers tremendous value and choice by offering DVD rentals as well as several digital products across a variety of content windows, including including transactional (TVOD), ad-supported (AVOD/FLTV) and being a distributor of original feature films with a growing content library. Redbox currently conducts its business through two operating segments: (1) Legacy Business and (2) Digital Business. For its Legacy business, Redbox operates a national network of approximately 38,000 self-service kiosks where consumers can rent or purchase DVDs and Blu-ray discs (“movies”). Redbox also generates service revenue by providing installation, merchandising, and troubleshooting services to other kiosk businesses. Finally, Redbox acquires and distributes films exclusively through its film distribution label, Redbox Entertainment, LLC, acquiring the rights to talent-directed films that are distributed on Redbox platforms as well as through third-party digital services. For its digital business, Redbox provides both transactional and ad-supported digital streaming services, which include 1) Redbox On Demand, a transactional service that offers digital rental or purchase of new and catalog, 2) Redbox Free On Demand (AVOD), an ad-supported service offering free on-demand movies and TV shows, and 3) Redbox Free Live TV (FLTV), a free TV service funded by advertising giving access to more than 130 linear channels. Redbox also sells third-party display advertising through its mobile app, website, and email, as well as display and video advertising on the kiosk. For more information, please visit https://investors.redbox.com/.
This communication relates to a proposed business combination transaction between Chicken Soup for the Soul Entertainment, Inc. and Redbox Entertainment Inc. This communication contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements address a variety of topics, including, for example, projections as to the anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on the combined organization’s business, and future financial and operating results. , the expected amount and timing of the synergies of the proposed transaction, and the expected closing date of the proposed transaction. Statements that are not historical facts, including statements about CSSE’s and Redbox’s beliefs, plans and expectations, are forward-looking statements. These statements are based on CSSE’s and Redbox’s current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. Forward-looking statements often contain words such as “expect”, “anticipate”, “intend”, “plan”, “believe”, “will”, “estimate”, “would”, “target” and similar expressions, as well as variations or negatives of these words. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: uncertainty about the extent of the duration, scope and impacts of the COVID-19; political and economic uncertainty, including any deterioration in global economic conditions or the stability of credit and financial markets, erosion of consumer confidence and decline in customer spending; unavailability of raw materials, services, supplies or manufacturing capacity; changes in geographic scope or range of products or customers; changes in export classifications, import and export regulations or duties and tariffs; changes in CSSE’s or Redbox’s estimates of their expected tax rate based on applicable tax laws; Ability of the CSSE to successfully integrate Redbox activities and technologies; the risk that the expected benefits and synergies of the proposed transaction and the growth prospects of the combined company will not be fully realized in a timely manner, if at all; adverse litigation outcomes, including the potential for litigation related to the proposed transaction; the risk that CSSE or Redbox may not be able to retain and hire key personnel; the risk associated with CSSE’s and Redbox’s ability to obtain their respective shareholder approvals necessary to complete the proposed transaction and the timing of the closing of the proposed transaction, including the risk that the conditions of the transaction will not be satisfied timely or at all or failure to close the transaction for any other reason or as provided, including expected tax treatment; the risk that any regulatory approval, consent or clearance that may be required for the proposed transaction will not be obtained or will be obtained subject to conditions that are not anticipated; unforeseen difficulties or expenses related to the transaction, business partner response and retention following the announcement and expectation of the transaction; uncertainty as to the long-term value of CSSE common stock; and the diversion of management’s time on transaction-related matters. These risks, as well as other risks relating to the proposed transaction, are included in the registration statement on Form S-4 and the proxy statement/information statement/prospectus which are filed with the Securities and Exchange Commission (the “SECOND”) in connection with the proposed transaction. Although the list of factors presented here and the list of factors presented in the registration statement on Form S-4 are considered representative, no such list should be considered a complete statement of all risks and uncertainties. potentials. For additional information on other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to CSSE’s and Redbox’s respective periodic reports and other filings with the SEC, including the risk factors contained in the most detailed CSSE and Redbox reports. recent quarterly reports on Form 10-Q and annual reports on Form 10-K. Forward-looking statements represent management’s current expectations and are inherently uncertain and are made only as of the date hereof. Except as required by law, neither CSSE nor Redbox undertakes any obligation to update any forward-looking statements, whether as a result of new information or to reflect subsequent events or circumstances or otherwise.
Redbox Investor Relations and Media Contact