Cineverse Corp. Enters Material Agreement, Incurs Financial Obligation
Ticker: CNVS · Form: 8-K · Filed: Apr 11, 2024 · CIK: 1173204
Sentiment: neutral
Topics: material-agreement, financial-obligation
Related Tickers: CNVS
TL;DR
Cineverse just signed a big deal and owes money, details TBD.
AI Summary
Cineverse Corp. entered into a material definitive agreement on April 5, 2024, which also created a direct financial obligation for the registrant. The filing does not specify the other party involved in the agreement or the exact nature of the financial obligation.
Why It Matters
This filing indicates a significant new financial commitment or agreement for Cineverse Corp., which could impact its financial health and future operations.
Risk Assessment
Risk Level: medium — The creation of a direct financial obligation without immediate disclosure of its terms introduces uncertainty regarding Cineverse's financial stability.
Key Players & Entities
- Cineverse Corp. (company) — Registrant
- April 5, 2024 (date) — Date of earliest event reported
- 20240405 (date) — Conformed period of report
- 20240411 (date) — Filing date
FAQ
What is the nature of the material definitive agreement Cineverse Corp. entered into?
The filing states that Cineverse Corp. entered into a material definitive agreement, but the specific details of the agreement are not disclosed in this 8-K filing.
What is the direct financial obligation incurred by Cineverse Corp. as a result of this agreement?
The filing confirms the creation of a direct financial obligation for Cineverse Corp., but the exact terms, amount, and nature of this obligation are not specified in this document.
Who is the counterparty to the material definitive agreement with Cineverse Corp.?
The identity of the other party involved in the material definitive agreement with Cineverse Corp. is not provided in this 8-K filing.
When was the earliest event reported in this filing?
The earliest event reported in this filing occurred on April 5, 2024.
What are the previous names of Cineverse Corp.?
Cineverse Corp. was formerly known as Cinedigm Corp., Cinedigm Digital Cinema Corp., and Access Integrated Technologies, Inc. d/b/a Cinedigm Digital Cinema Corp.
Filing Stats: 826 words · 3 min read · ~3 pages · Grade level 11.8 · Accepted 2024-04-11 08:15:10
Key Financial Figures
- $3,666,000 — n with a principal amount not to exceed $3,666,000 (the "T3 Loan"), and a maturity date of
- $576,000 — other than an interest advance equal to $576,000 deemed earned at the closing of the T3
- $1,500,000 — is capped at obligations not exceeding $1,500,000 (the "Guaranty Agreement"). The Guarant
Filing Documents
- cnvs-20240405.htm (8-K) — 44KB
- 0000950170-24-043527.txt ( ) — 160KB
- cnvs-20240405.xsd (EX-101.SCH) — 27KB
- cnvs-20240405_htm.xml (XML) — 5KB
01
Item 1.01. Entry into a Material Definitive Agreement. On April 5, 2024, Cineverse Terrifier LLC ("T3 Borrower"), a wholly-owned subsidiary of Cineverse Corp. (the "Company") entered into a Loan and Security Agreement with BondIt LLC ("T3 Lender") and the Company, as a guarantor (the "T3 Loan Agreement"). The T3 Loan Agreement provides for a term loan with a principal amount not to exceed $3,666,000 (the "T3 Loan"), and a maturity date of April 1, 2025, unless extended for 120 days. The T3 Loan bears no interest until the maturity date other than an interest advance equal to $576,000 deemed earned at the closing of the T3 Loan on April 5, 2024. If the T3 Loan is extended as noted above, the T3 Loan will bear interest at a rate of 1.44% per month. T3 Borrower may prepay the obligations under the T3 Loan, in full or in part, without penalty or premium. The proceeds under the T3 Loan Agreement will be used for the funding under the Company's distribution arrangements for the film titled Terrifier 3 (the "Film"). The T3 Loan Agreement contains customary covenants, representation and warranties and events of default. After the principal of the T3 Loan is paid in full, T3 Lender will be entitled to receive 15% of all royalties earned by the Company on the Film under its distribution agreements for the Film until T3 Lender has received 1.75 times the full commitment amount of $3,666,000, consisting of the principal amount plus interest and fees advanced to T3 Borrower, plus any extension interest. The T3 Loan is secured by a first priority interest in all of T3 Borrower's rights and interest in the Film and the distribution agreements, including the proceeds to T3 Borrower from the distribution of the Film. The Company entered into a Guaranty Agreement pursuant to which it provided a guarantee of the T3 Loan which is capped at obligations not exceeding $1,500,000 (the "Guaranty Agreement"). The Guaranty is subordinated in payment and performance to the Company's
03
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth under Item 1.01 above is incorporated herein by reference. SIGNATURE Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: April 11, 2024 By: /s/ Gary S. Loffredo Name: Gary S. Loffredo Title: Chief Legal Officer, Secretary & Senior Advisor