Redbox stock slides as stockholders approve merger deal with Chicken Soup for the Soul

Redbox rental location

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  • Redbox Entertainment (NASDAQ:RDBX) shares plunged pre-market on Wednesday after the video rental company announced that it received stockholders' approval on the merger proposal with Chicken Soup for the Soul Entertainment (NASDAQ:CSSE).
  • In May 2022, the two firms announced an agreement whereby Redbox stockholders will receive a fixed exchange ratio of 0.087 of a share of class A common stock of Chicken Soup for the Soul Entertainment per Redbox share. Following the ~$335M deal's close, Chicken Soup for the Soul Entertainment (CSSE) shareholders will own 76.5% of the new firm, while Redbox (RDBX) shareholders would own the remaining 23.5%.
  • At the Special Meeting of Redbox stockholders held today, 39,503,634 of the votes cast were voted in favor of the merger proposal, representing ~85.04% of the outstanding shares of Redbox (RDBX) common stock entitled to vote at the special meeting.
  • Shares have tumbled 22% pre-market in response. Last week, RDBX shares saw a sudden jump that triggered a brief halt in trading.
  • Meanwhile, CSSE shares have jumped 20% pre-market following the news

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