Chicken Soup For The Soul Entertainment (CSSE) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Chicken Soup For The Soul Entertainment (CSSE) faces a significant existential threat following its merger with Redbox and the assumption of $359.9 million of debt. The anticipated post-COVID recovery and synergies have failed to materialize at expected levels, leading to liquidity issues and defaults with key partners. This raises legitimate concerns about CSSE’s ability to continue as a going concern, jeopardizing its ability to secure further capital financing and potentially diminishing the value of its common and preferred stock. The company’s strategic and restructuring efforts offer no guaranteed resolution to the precarious financial situation, posing severe risks to investors and creditors alike.
Overall, Wall Street has a Hold consensus rating on CSSE stock based on 2 Holds.
To learn more about Chicken Soup For The Soul Entertainment’s risk factors, click here.
