Cinedigm Corp. (NASDAQ: CIDM) is shrinking its board membership and two directors have resigned to facilitate the reduction of the board. The announcement came after the company released its F4Q2016 and F2016 financial results that saw it report EBTDA losses in both cases. Cinedigm has also said that one of its largest shareholders, Ron Chez, is ascending to the position of the Lead Director of the board.
The two directors leaving the board of Cinedigm Corp. (NASDAQ: CIDM) are Martin O’Connor and Blair Westlake. The exit is primarily designed to ensure that Cinedigm has only five directors. It is not clear how long the two outgoing directors had served on the board of Cinedigm, but the company’s CEO Chris McGurk thanked them for their tireless service. McGurk also wished them the best in the future endeavors.
According to McGurk, the reduction of board membership to five will help increase efficiency on the board, which he said is in the best interest of shareholders. McGurk hinted that the reason O’Connor and Westlake decided to step down from their board positions was that they recognized that the company needed to streamline the board to improve its agility among other issues.
As the two directors leave, Cinedigm Corp. (NASDAQ: CIDM) has appointed Ron Chez to the position of Lead Director. It is worth noting that Chez in a large shareholder in CIDM. Before his latest promotion, Chez served one year as a strategic advisor to the company. As strategic advisor, Chez advised on an array of matters including strategic transactions and opportunities.
As the Lead Director, Chez is expected to bring to Cinedigm extensive business and financial expertise.
What transpired in F2016 for Cinedigm Corp. (NASDAQ: CIDM)?
Cinedigm Corp. (NASDAQ: CIDM) generated consolidated revenue of $104.5 million in F2016 and logged a loss of $3.4 million. For F4Q2016, consolidated revenue came in at $23.2 million and a loss of $2.1 million.
Cinedigm Corp (NASDAQ:CIDM) is hoping to raise $11 million in additional capital through issuance of debt to boost its liquidity.