Chicken Soup for the Soul Entertainment, Redbox’s parent company, said on Tuesday that it’s out of compliance with NASDAQ’s listing rules. According to the deficiency notice, the entertainment company didn’t file its Form 10-Q — a financial report sent to the U.S. Securities Exchange Commission that details a business’s finances as a result of operations — by the September 30 deadline.
Chicken Soup has 60 days to submit a plan to bring itself back into compliance with NASDAQ’s rule. If NASDAQ accepts the plan — which isn’t guaranteed — it will grant the company until May 20, 2024 to regain compliance. If the plan is rejected, Chicken Soup can appeal the decision to a NASDAQ hearings panel.
“The company is working diligently to complete the Form 10-Q and anticipates filing the Form 10-Q as soon as possible,” CSSE said in a statement.
If Chicken Soup isn’t able to regain compliance and is delisted from NASDAQ, it will be a massive financial blow to the company, which raises money by selling stocks. Chicken Soup is already in “active discussions” around a potential sale amid its mounting debt.
In addition to Redbox, CSSE, an ad-supported video on-demand company, owns Crackle and Chicken Soup for the Soul as well as Redbox Free Live TV. Redbox Free Live TV is a free ad-supported streaming service with about 180 channels and transaction video on-demand options.