Cinedigm Corp. announced that it has entered into a stock purchase agreement for the private placement and issued series B preferred stock at a par value $0.001 per share for gross proceeds of $10,000 on April 4, 2023. The transaction included participation from Christopher J. McGurk, the chief executive officer of the company, and chair of the company's board of directors.

The series B preferred stock is not convertible into, or exchangeable for, shares of any other class or series of stock or other securities of the company. The series B preferred stock shall be entitled to receive dividends on a pari passu basis with the outstanding shares of common stock. Upon a liquidation, bankruptcy, reorganization, merger, acquisition, sale, dissolution or winding up of the company pursuant to which assets of the company or consideration received by the company are to be distributed to the stockholders, the holder of series B preferred stock will be entitled to receive, before any payment is made to the holders of common stock by reason of their ownership thereof, an amount equal to $10,000.

The series B preferred stock may not be transferred at any time prior to stockholder approval of a reverse stock split proposal without the prior written consent of the company's board of directors. The outstanding share of series B preferred will be redeemed for a redemption price of $10,000, payable out of funds lawfully available therefor, if such redemption is ordered by the company's board of directors in its sole discretion, or automatically immediately following the approval by the stockholders of a reverse stock split proposal. Upon such redemption, the share of series B preferred shall be automatically retired and restored to the status of an authorized but unissued share of the company's preferred stock.

The sale of the share of series B preferred was exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended.