Lions Gate Entertainment Corp Class A (LGF.A) has disclosed a new risk, in the Corporate Activity and Growth category.
Lions Gate Entertainment Corp Class A faces significant operational constraints due to the terms stipulated in the Business Combination Agreement. During the interim period before the completion of the Business Combination, the company must adhere to standard operating covenants, limiting its ability to conduct the Studio Business as usual. These restrictions notably hinder Lions Gate’s capacity to undertake acquisitions, invest in capital expenditures, or access new financing without the express consent of SEAC. Consequently, Lions Gate may miss opportunities that could enhance its strategic position or financial health, potentially impacting its competitive edge and future growth prospects.
The average LGF.A stock price target is $9.00, implying -4.05% downside potential.
To learn more about Lions Gate Entertainment Corp Class A’s risk factors, click here.
