Cineverse Expands Existing Line of Credit Facility with East West Bank to $15 Million with a Three-Year Term

Rhea-AI Summary

Cineverse (NASDAQ: CNVS) has expanded its credit facility with East West Bank from $7.5 million to $12.5 million, with potential expansion to $15 million. The agreement extends the term from one year to three years at an interest rate of Prime plus 1.25% (currently 8.75% with $0 balance).

The expanded credit line follows Cineverse's successful fiscal third quarter and aims to support content investments for top-line revenue growth. The non-dilutive financing strengthens the company's balance sheet while maintaining existing shareholder equity.

Positive

• Credit facility expanded from $7.5M to $12.5M (potentially $15M)
• Term extended from 1 to 3 years providing longer-term financial flexibility
• Non-dilutive financing preserves shareholder value
• Follows successful fiscal Q3 performance
• Current $0 balance indicates strong cash position

Negative

• Interest rate of 8.75% (Prime + 1.25%) represents significant borrowing cost

News Market Reaction – CNVS

+15.23%

+15.23% Session move

In the trading session that priced this news, CNVS gained 15.23%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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Additional Capital Ensures Cineverse will be Well-Positioned Moving Forward as it Continues to Invest in Content to Build Off its Recent Box Office Success

LOS ANGELES, April 9, 2025 /PRNewswire/ -- Cineverse Corp. (Nasdaq: CNVS) ("Cineverse", "us", "our", "we", and the "Company"), a next-generation entertainment studio, today announced that it has expanded the size of its existing line of credit facility with Pasadena-based East West Bank from $7.5 million to $12.5 million, expandable to $15 million, and extended the term from one-year to three-years at an interest rate of Prime plus 1.25% (8.75% currently with a $0 current balance).  

"Closing this expanded credit facility with our long-term collaborators at East West Bank allows us to make content and other investments that are critical to our top-line revenue growth," said Chris McGurk, Cineverse Chairman and CEO. "The team at East West Bank, including Managing Director David Acosta, have been great to work with and we greatly appreciate their help and support over these past several years."

This further strengthens the Company's balance sheet without equity dilution. It comes following Cineverse's recent reporting of a successful fiscal third quarter.

About Cineverse

Cineverse (Nasdaq: CNVS) is a next-generation entertainment studio that empowers creators and entertains fans with a wide breadth of content through the power of technology. It has developed a new blueprint for delivering entertainment experiences to passionate audiences and results for its partners with unprecedented efficiency, and distributes more than 71,000 premium films, series, and podcasts. Cineverse connects fans with bold, authentic, independent stories. Properties include the highest-grossing non-rated film in U.S. history; dozens of streaming fandom channels; a premier podcast network; top horror destination Bloody Disgusting; and more. Powering visionary storytelling with cutting-edge innovation, Cineverse's proprietary streaming tools and AI technology drive revenue and reach to redefine the next era of entertainment. For more information, visit home.cineverse.com.

Contacts:

For Media
The Lippin Group, cineverse@lippingroup.com 

For Investors
Julie Milstead, investorrelations@cineverse.com 

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SOURCE Cineverse Corp.

FAQ

What are the terms of Cineverse's (CNVS) expanded credit facility with East West Bank?

The facility increased from $7.5M to $12.5M (expandable to $15M) with a 3-year term at Prime + 1.25% (8.75% currently).

How does the April 2025 credit line expansion affect CNVS shareholders?

The financing strengthens Cineverse's balance sheet without equity dilution, preserving shareholder value.

What is the current balance on CNVS's expanded credit facility?

The current balance is $0 on the credit facility.

What will Cineverse (CNVS) use the expanded credit facility for?

The funds will be used for content investments to drive top-line revenue growth.