Redbox will start trading after completing the SPAC merger


Redbox completed its SPAC merger with Seaport Global Acquisition Corp on Friday. (SGAM) and will begin trading Monday on the Nasdaq under the ticker RDBX.

Redbox’s business combination with Seaport Global Acquisition was unanimously approved by the parties’ boards of directors and Seaport shareholders at a special meeting on Wednesday, according to a company statement.

Oakbrook Terrace, Ill., Movie and entertainment rental company, which is controlled by private equity firm Apollo Global Management, announced the SPAC transaction in May with an estimated enterprise value of $ 693 million. of dollars.

“Today marks the start of the next chapter of Redbox,” Redbox CEO Galen Smith said in a statement Friday. “Since revolutionizing the way Americans rent movies almost two decades ago, Redbox has continued to evolve and expand our reach, while providing our millions of loyal customers with exceptional value. in home entertainment.

“Today, we build on our heritage and reaffirm our commitment to providing a wide range of choice and convenience for consumers, as well as added value for our Redbox stakeholders,” said Smith.

The transaction, which includes a fully committed $ 50 million PIPE led by Ophir Asset Management and supporting agreements, will provide Redbox with $ 88 million in cash to be used to pay off existing debt, pay transaction fees and charges. , finance future growth investments and for general business purposes.

The final number of repurchased shares amounts to 12,346,223. Redbox will have approximately 45.4 million shares outstanding, of which approximately 2 million shares will be immediately tradable. The shares that will be purchased under the support agreements, as well as the PIPE, will be registered separately for resale in the future.

Redbox offers new movie and entertainment rentals through its kiosks and streaming platform. In recent months, it has entered into several agreements to improve its business, according to the statement.

It has entered into a multi-year distribution agreement with Lionsgate to distribute Redbox Entertainment titles, extended the distribution footprint of its streaming app to the PlayStation 5 console, and signed a promotional deal with Roku to attract cross-platform users to the app. Redbox streaming.

Redbox also announced that it will add 20 free ad-supported TV channels to its streaming service and has entered into a distribution agreement with Vewd to preload the Redbox streaming app on new and existing Vewd TVs and set-top boxes in the States. -United.

Seaport Global shares rose 4.3% to $ 10.03 after-hours on Friday. The action had fallen 25% in regular session.

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