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 financial challenge following its merger with Redbox and the assumption of $359.9 million in debt. The company’s strategy hinged on a resurgence of physical kiosk rentals and expected synergies, which have not materialized at projected levels, leading to cash flow issues and operational inefficiencies. These setbacks raise substantial doubt about CSSE’s ability to continue as a going concern, potentially jeopardizing its capital financing efforts and diminishing stock value, as the company explores strategic alternatives and cost-cutting measures to mitigate these risks.
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.
