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Benzinga

Redbox Entertainment Stock Halted Several Times: What's Going On?

Redbox Entertainment Inc (NASDAQ:RDBX) shares are extremely volatile on Wednesday. The stock is trading narrowly lower after initially falling more than 50% following a takeover announcement.

Redbox entered into a definitive agreement with Chicken Soup For The Soul Entertainment Inc (NASDAQ:CSSE) in which Chicken Soup For The Soul will acquire Redbox. Redbox shareholders will receive a fixed exchange ratio of 0.087 of a share of common stock of Chicken Soup for the Soul Entertainment per Redbox share.

Following the closing of the transaction, Chicken Soup For The Soul shareholders will own approximately 76.5% of the combined company and Redbox shareholders will own approximately 23.5%.

The transaction is expected to close in the second half of 2022. The business combination aims to create a leading independent, integrated direct-to-consumer media platform delivering premium entertainment for value conscious consumers.

See Also: What's Going On With Roblox Shares Today?

RDBX Price Action: Redbox shares have been halted several times Wednesday morning. The stock traded down to $2 per share on the announcement before recovering significantly.

The stock was down 8.04% at $5.15 at time of publication.

Photo: courtesy of Redbox.