Sabra Capital now an activist at Cinedigm
Sabra Capital owns 2.7% of the Cinedigm stock and 10% of its notes. It's now gone officially active, having been a shareholder since 2013. Cinedigm is the $73 million market cap distributor of independent movies and TV/short form content.
Sabra's involvement comes after Cinedigm completed an ill-advised and highly dilutive $64mm convertible offering in April 2015. Sabra is pushing for an immediate and large share repurchase program of no less than $15mm to mitigate part of the dilution from the convertible deal.
It also wants the company to pursue strategic alternatives for both its deployment and services segments. A potential sale could unlock capital (~$100mm above the current non-recourse debt) to reinvest in the core CEG business.