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Technology Stocks : CIDM - Cinedigm Digital Cinema Corp.
CIDM 0.930-11.4%Jan 19 4:00 PM EST

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From: xcentral14/20/2010 8:53:38 AM
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The Company Registers the Resale of Existing Securities by Holders

MORRISTOWN, NJ and LOS ANGELES, CA -- (Marketwire) -- 04/20/10 -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM) ("the Company"), the global leader in the digital cinema industry, today announced that it filed a registration statement on Form S-3 with the SEC to register the resale of certain of its securities by the holders of those securities. Cinedigm is not offering to sell any existing securities. In connection with the private placement completed on August 11, 2009, the Company has previously issued warrants to purchase 16 million shares of our Class A common stock to Sageview Capital, L.P. ("Sageview"). The recent registration statement covers the resale by Sageview of these warrants and the shares underlying the warrants. The registration statement also covers the resale of 1,948,633 shares of Class A Common Stock by certain other holders of the Company's Class A Common Stock and certain warrants previously issued in connection with investments in the Company. The Company will neither issue new securities nor receive any proceeds from these resales, pursuant to the registration statement.

The warrants were issued in conjunction with the purchase of $75 million of 15% Senior Notes. The warrants have a $1.37 exercise price and, together with the underlying shares, are also subject to 2 year non-transfer restrictions from their date of issuance. This registration will also enable the Company to reclassify the value of the warrants as equity rather than as a liability, and eliminates the accounting for the change of value in the warrants through the Company's income statement.

Adam Mizel, CFO and Chief Strategy Officer of Cinedigm, commented, "This registration statement is the last step in the completion of our August 2009 financing with Sageview Capital, L.P. Since that time, Sageview has been a valuable long term investor and supporter of the Company. With two directors on our board, they continue to provide us with sound strategic advice."

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of the securities in any jurisdiction in which such offering would be unlawful.

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