Chicken Soup for The Soul Entertainment has announced the suspension of monthly cash dividends on its series A preferred stock. This decision comes as the Redbox owner aims to preserve cash and boost its stock price.

Dividend Payment Deferral

In a securities filing, the company has stated that the suspension will defer approximately $1.2 million in dividend payments each month. This move is part of the company's strategy to prioritize financial stability and liquidity.

Special Payment on Notes

Additionally, Chicken Soup has revealed plans to make a special payment of approximately $1.1 million on its notes due 2025. This payment will cover all accrued and unpaid interest that was originally due on Jan. 2 but remained outstanding.

Nasdaq Compliance Issues

Chicken Soup has received non-compliance notices from the Nasdaq due to its low stock price and market value. These factors have fallen below the listing rules set by the exchange. The company's stock price has faced challenges since its acquisition of DVD-rental kiosk company Redbox in 2022, resulting in increased debt burden.

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