Chicken Soup for the Soul Entertainment Reopens Preferreds

It is seldom that we see a company reopen a preferred offering for 120,000 shares to be sold–but that is what Chicken Soup for the Soul Entertainment (NASDAQ:CSSE) is doing.

The company will sell 120,000 shares of their 9.75% Series A cumulative preferred with an additional 18,000 shares available for overallotment.

The prospectus can be read here.

The original issue was sold on 6/27/2018 and was just 600,000 shares.

The chart of the issue can be seen here.

The little entertainment distribution company announced earnings yesterday.  Revenue amounted to $6.6 million last quarter with net income of $836,000.  They expect revenue of $36 million for the year.  Earnings can be reviewed here.

The issue being reopened is trading under CSSEP and shares closed at $24.80 Thursday.

Needless to say this preferred issue is unrated and thus I view it as junk.