Cinedigm CEO Chris McGurk says the company plans to buy back up to 10 million shares of its beleaguered stock over the next 12 months as it looks to avoid getting delisted from the Nasdaq.
In a letter to shareholders, the former senior exec at Universal, Disney and MGM who has been in the top job at Cinedigm since 2011 also said the company plans to rename itself in the coming months.
Having recently wrapped a years-long effort to shift its strategic focus from cinema technology to streaming, the company sees the rebrand as helping it to “reflect this momentous turning point” and “accentuate our position and narrative,” McGurk wrote.
Shares in Cinedigm gained 5% on nearly triple their average trading volume to close at 52.5 cents.
That’s roughly the mid-point of the stock’s range over the past year, but also well below the one-dollar threshold established by the Nasdaq for all companies listed on its exchange.
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