Cinedigm: More Pain For The Activist Target
There's no end in sight for the pressure that Cinedigm Corp. ($CIDM) is facing. Shares are down another 20% this week, which comes after a weak earnings report and a new $5 million stock repurchase plan.
Sabra Capital has been an activist investor here for awhile and Ronald Chez joined its fight a couple months ago.
Activists have called for a $15 million share repurchase. And noting the board owns little of the company’s stock. However, the positives that have been pointed out include the positive momentum in its core business, with strong performance at Wal-Mart in disc sales.
Cinedigm will be delisted from the NASDAQ on December 7 if it can't get its stock price above $1 for 10 days - it's currently at 68 cents.