Benzinga | Mar 30, 2021 03:46PM EDT

Cinedigm Shares Spike To Session High, Up 13%, Following Co. 8-K On Co. Unit, Cinedigm Digital Funding, Entering Equipment Purchase Deal With American Multi-Cinema

On March 26, 2021, Cinedigm Digital Funding I, LLC ("CDF I"), a wholly-owned subsidiary of Cinedigm Corp. (the "Company"), entered into an Equipment Purchase Agreement (the "Phase I Equipment Purchase Agreement)" with American Multi-Cinema, Inc. ("AMC"). Also on March 26, 2021, Access Digital Cinema Phase 2, Corp. ("ADCP2") and Access Digital Cinema Phase 2 B/AIX Corp. ("B/AIX"), wholly-owned subsidiaries of the Company, entered into an Equipment Purchase Agreement (the "Phase II Equipment Purchase Agreement" and, together with the Phase I Equipment Purchase Agreement, the "Equipment Purchase Agreements") with AMC. The Equipment Purchase Agreements, which are effective as of March 17, 2021, provide for the purchase by AMC of certain digital cinema equipment at certain specified dates. The aggregate consideration for the equipment being sold pursuant to the Equipment Purchase Agreements is $10,838,000. The equipment will be sold over time and the consideration will be payable in portions upon each separate sale which will occur at various dates from the date of the Equipment Purchase Agreements through January 2023. The Equipment Purchase Agreements contain representations and warranties customary for such types of agreements.