Chicken Soup for the Soul Entertainment, Inc. (NasdaqGM:CSSE) signed a definitive asset purchase agreement to acquire the film and television assets of Sonar Entertainment, Inc. for $19.5 million on April 8, 2021. The consideration paid is directly related to the success of the acquired assets. An advance payment will be made to Sonar Entertainment at closing, to be recouped by Chicken Soup for the Soul Entertainment upon the sale or licensing of certain television rights. In addition, Sonar Entertainment will receive 5% of the ownership of a new AVOD network that will be created in part with the Sonar library. Chicken Soup has secured committed financing for the transaction. Screen Media will distribute Sonar's extensive film and television library after the closing. The transaction is subject to the receipt of numerous third party consents and satisfaction of certain closing conditions. The acquisition is expected to close in 30 days. Chicken Soup anticipates significant expansion of revenue and EBITDA from Sonar's valuable television content development pipeline beginning in 2022. The transaction is expected to be immediately accretive to Chicken Soup for the Soul Entertainment's financial results.

HCFP/Strategy Advisors LLC acted as Due Diligence Provider to Chicken Soup for the Soul Entertainment in this transaction. FTI Capital Advisors LLC acted as exclusive financial advisor while Joseph A. Calabrese of Latham & Watkins LLP acted as legal counsel for Sonar in connection with the transaction. David Alan Miller and Brian L. Ross of Graubard Miller acted as legal counsels for Chicken Soup for the Soul Entertainment. Susan Williams, Paul P. Sagan and Andrew V. Tenzer of Paul Hastings LLP acted as legal counsel for MidCap Financial.

Chicken Soup for the Soul Entertainment, Inc. (NasdaqGM:CSSE) completed the acquisition of the film and television assets of Sonar Entertainment, Inc. on May 21, 2021. In connection with the closing, the company received a $20 million secured credit facility, agented by MidCap Financial, the proceeds of which were used to fund part of the purchase price, of the initial $18.9 million, provided for in the acquisition agreement.