Redbox has completed its previously announced business combination with Seaport Global Acquisition Corp., a publicly traded special purpose acquisition company. As a result of the merger, the entity will be known as “Redbox Entertainment Inc.”
Redbox’s common stock and warrants are expected to begin trading on Nasdaq Oct. 25 under the ticker symbols “RDBX and “RDBXW,” respectively.
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“Today marks the beginning of Redbox’s next chapter,” Galen Smith, CEO of Redbox, said in a statement. “Since revolutionizing the way Americans rent movies nearly two decades ago, Redbox has continuously evolved and expanded our reach — all while offering our millions of loyal customers exceptional value in home entertainment. Today, we are building on our legacy and reaffirming our commitment to delivering a wide range of choice and convenience for consumers, as well as value for our Redbox stakeholders.
“As a public company, we plan to continue our strong momentum and accelerate our digital transformation. Through this transaction, and the incremental capital it provides, Redbox is equipped to advance our goal of creating a one stop experience that spans multiple entertainment mediums and simplifies the streaming experience. We are eager to capture the significant and growing opportunities ahead, take our business to the next level and achieve profitable growth for Redbox shareholders.”
Seaport Global Acquisition Corp., the special purpose acquisition company formed to help Redbox go public, on Oct. 12 announced that it has entered into backstop subscription agreements in connection with the business combination.
As previously announced on May 17, 2021, the transaction will be funded by a combination of $145 million of cash held in the trust account of Seaport Global and a fully committed PIPE of $50 million.
The backstop agreements, which total up to $36 million, ensure that Redbox will have the capital to fund its digital transformation and expansion initiatives, according to a news release. These backstop agreements should ensure the minimum cash condition required of the business combination agreement will be met.
A special meeting of Seaport Global Acquisition stockholders will be held Oct. 20. If certain of the proposals at the Special Meeting are approved, the parties anticipate the business combination will close shortly thereafter, subject to the satisfaction or waiver (as applicable) of all other closing conditions.
Upon closing, Redbox’s common stock is expected to trade on Nasdaq under the ticker symbol RDBX.
“We appreciate the vote of confidence in Redbox’s digital future expressed by Seaport Global Acquisition and our existing investors,” said Galen Smith, CEO of Redbox. “Redbox is one of the most trusted brands in the entertainment industry, and we have a unique opportunity to extend the value we deliver to consumers as they cut the cord and search for affordable entertainment. We look forward to completing the combination and demonstrating our progress as a public company under the RDBX symbol.”