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Cinedigm Announces Closing Of Underwritten Public Offering

Cinedigm Digital Cinema Corp. (NASDAQ:CIDM),a global leader in digital cinema, announced today it closed an underwritten public offering of 3,780,718 shares of common stock, at a price to the public of $1.38 per share. The Company plans to use the approximately $4.8 million in net proceeds for the acquisition of library and film content, marketing and distribution expenses related to its growing slate of films, the launching of over-the-top entertainment channels, and for general corporate purposes.

In connection with the offering, Merriman Capital, Inc. and National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (OTCBB: NHLD), acted as joint book runners.

“While we continue to rapidly grow our content distribution business, we have targeted a number of new high potential content acquisition opportunities that can be tapped at an attractive rate of return to investors,” said Chris McGurk, Chairman and CEO. “As we head toward the busy fall film acquisition season and pursue a number of library acquisitions in front of us, we believe this equity raise will continue our positive momentum in Fiscal 2014. Additionally, if the early reviews, accolades and awards are any indication, our August release of SHORT TERM 12 has the potential to be a significant event for us and we must be poised to support the film’s success. Finally, on the OTT channel front, it’s important that we move quickly to establish ourselves as a key player in this high potential and rapidly evolving business.”

“In the last 12 months we have released 10 films, 5 in the last quarter alone, and the upfront acquisition and marketing costs associated with those releases have yet to be recouped as it takes roughly 6-12 months to recycle our initial content investments," said Adam Mizel, Chief Operating Officer and CFO. “Based on our slate of profitable acquisitions to date, we have concluded that the accretive opportunities in front of us currently merit this raise as we expect to grow our content revenues over 200%+ this year and that takes capital – plain and simple. As we recycle our content investments and continue to develop our track record in the coming months, our goal for the future is to utilize other non-equity sources to fund our working capital.”

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