QUANTUMONLINE.COM SECURITY DESCRIPTION: Chicken Soup for the Soul Entertainment, Inc. 9.75% Series A Cumulative Redeemable Perpetual Preferred Stock, liquidation preference $25 per share, redeemable at the issuer's option on or after 6/27/2023 at $25 per share plus accrued and unpaid dividends, and with no stated maturity. Cumulative distributions of 9.75% per annum ($2.4375 per annum or $0.203125 per month) will be paid monthly on the 15th day of each month to holders of record on the record date that will be the last day of the calendar month immediately proceeding the payment date (NOTE: the ex-dividend date is one business day prior to the record date).
Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders (see page 45 of the prospectus for further information).
This security was not rated by Moody’s or S&P at the time of its IPO. In regard to the payment of dividends and upon liquidation, the preferred Prior to 6/27/2023, upon the occurrence of a Change of Control, the issuer may, at its option, redeem the Series A Preferred Stock, in whole or in part, within 120 days after the first date on which such Change of Control occurred, for cash at a redemption price of $25.00 per share, plus any accumulated and unpaid dividends.
The Preferred shares rank junior to the company's senior debt, equally with other preferreds of the company, and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
