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 significant financial instability following its merger with Redbox, which added $359.9 million in debt to its balance sheet. The anticipated recovery in kiosk rentals and cost synergies post-merger has fallen short of expectations, leading to a liquidity crisis and operational challenges. With the company’s operating results failing to meet projections and cash flows proving inadequate, there is serious concern about CSSE’s ability to sustain operations. This uncertainty casts a shadow over the company’s capacity to attract capital financing and maintain shareholder value, as the specter of potential insolvency looms.
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.
