ITEM 3.02. Unregistered Sales of Equity Securities.

On January 13, 2021, Chicken Soup for the Soul Entertainment Inc. ("CSSE") issued 1,600,000 shares of its 9.75% Cumulative Redeemable Perpetual Preferred Stock ("Preferred Stock") to CPE Holdings Inc. ("CPEH"), a Delaware Corporation and affiliate of Sony Pictures Television Inc. ("SPT"). The shares of Preferred Stock were issued pursuant to a put option (the "Put Option") granted to CPEH under that certain amended and restated limited liability company agreement dated as of March 27, 2019 (the "LLC Agreement") between CSSE, Crackle Plus, LLC, a Delaware limited liability company (the "JV Entity") and CPEH. The Put Option was exercised on December 14, 2020, as previously disclosed in CSSE's Current Report on Form 8-K filed with the Securities Exchange Commission on December 15, 2020. As previously disclosed, CSSE had the option to elect to pay cash in lieu of issuing Preferred Stock. CSSE determined, in its sole discretion, to satisfy the Put Option entirely through the issuance of Preferred Stock. As a result of CPEH's exercise of the Put Option, CSSE now owns 100% of the outstanding interests of the JV Entity.

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