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 business risk following its merger with Redbox, which brought $359.9 million of debt into the company’s balance sheet. The servicing of this debt hinged on the revival of pre-COVID levels of physical kiosk rentals and expected cost synergies. However, the anticipated recovery in demand and synergy benefits have not materialized to the expected extent, leading to operational shortfalls and liquidity challenges. Consequently, there is substantial doubt about CSSE’s ability to continue as a going concern, endangering its ability to secure additional financing and potentially diminishing the value of its stocks.
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.
