On August 18, Chicken Soup for the Soul Entertainment (Nasdaq: CSSE), a fast-growing provider of positive and entertaining video content, announced the completion of its historic IPO. With an upsized deal of $30 million, CSSE’s offering was oversubscribed and stands as the largest exchange-listed IPO completed under Regulation A+ and the first to list on the higher tier Nasdaq Global Select Market.
Chairman and Executive Officer William J. Rouhana Jr. along with the Chicken Soup for the Soul team ringing the Nasdaq OpeningBell at MarketSite.
Regulation A+ (Reg A+) deals provide investors with investment choices outside of the traditional IPO. The JOBS Act amended the Securities Act requiring the Commission to update and expand the Regulation A+ exemption which now permits companies with revenues of less than $1 billion the opportunity to offer a maximum of $50 million of securities within 12 months. Reg A+ deals help facilitate early stage companies to raise capital while still providing robust investor protection. CSSE offered 2,500,000 Class A Common shares at $12 apiece, and the company requested that 900,000 of those shares be offered to individual investors to give fans an opportunity to buy into the brand.
Commenting on the IPO, CSSE’s Chairman and Executive Officer William J. Rouhana Jr. said:
"We are extremely pleased with the investor demand for our IPO. Our fans and customers are truly loyal and passionate about our brand, and we are thrilled to have them join us as shareholders. To accommodate such demand, we upsized the offering repeatedly until we reached the $30 million maximum under our offering circular."
Chicken Soup for the Soul Entertainment is best known for the Chicken Soup for the Soul book series, which has sold more than 500,000,000 copies to date in the U.S. and Canada. Since 2015, the company has added a stream of products to their line including pet food, television shows, movies, and podcasts around positive journalism. In June, CSSE announced that Ashton Kutcher would serve as an executive producer for two new television series’ and the brand continues to expand its digital presence as the company matures and taps into multiple streams of revenue.
Nasdaq is home to Adomani (Nasdaq: ADOM) and ShiftPixy (Nasdaq: PIXY) which are both Reg A+ offerings. Nasdaq supports the JOBS Act in promoting small-business growth and maturation. Nasdaq offers a range of tools for supporting companies pre- and post- IPO. From a marketing support, investor relations tools, news distribution services and PR support perspective, Nasdaq’s expertise spans several mediums and offers companies additional visibility options outside of traditional offerings. CSSE’s media visibility spanned social media, print, and broadcast segments with CNBC Squawk Box, BNN, and TheStreet.
Nasdaq provides listed companies with substantial liquidity and access to tap capital funding. Commenting on the IPO, Nasdaq Executive Vice President of Listing Services Nelson Griggs, said:
“Nasdaq is honored to welcome Chicken Soup for the Soul Entertainment to our family of leading global entertainment companies and we look forward to celebrating many more milestones with Chicken Soup for the Soul Entertainment.”
Nasdaq is committed to supporting companies interested in pursuing a Reg A+ offering. For more information please contact Jordan Saxe, Senior Managing Director of New Listings and Capital Markets at Nasdaq:
Phone: +1 212 401 8719 / Email: Jordan.Saxe@nasdaq.com
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