Cinedigm Corp. announced today that on Dec. 29 the Sherman Oaks based entertainment company secured a $10 million loan from Bison Entertainment and Media Group.
Last year Hong Kong-based Bison bought 20 million shares of Cinedigm stock, and currently Cinedigm is working with the company to develop plans for releasing entertainment content and develop OTT, or "over the top" distribution channels to stream video and audio in China.
The new $10 million loan has a final payment date for 2021. It carries a 5 percent interest rate per annum payable quarterly in cash.
The loan is unsecured and can be prepaid without premium or penalty.
“The proceeds will be used to invest behind Cinedigm’s content and OTT channel expansion plans in China and North America,” Chief Executive Chris McGurk said in an email to the Business Journal.
The Business Journal contacted Cinedigm to get further details on the loan agreement but declined to comment before press time.
Shares of Cinedigm Corp. (CIDM) closed Friday down 2 cents or 1 percent to $1.48 on the Nasdaq.