Self-help book publishing guru Chicken Soup for the Soul has turned itself into a video entertainment company and plans to expand through a Regulation A offering with plans to list on Nasdaq’s Global Market. The Securities and Exchange Commission qualified the offering on July 13. The company is selling 900,000 shares at $12 a share with hopes to raise $13.9 million. Around $3 million of the capital raised will go to selling shareholders who invested early in private placement financing that helped fund the company during its growth stage, which means only $10.8 million of the funds raised go back to the company.
HCFP Capital Markets is the underwriter on the deal and is teaming up with broker-dealers The Benchmark Company and Weild & Co. This is first Reg A+ offering that any of the firms have participated in, and the latest indication that traditional emerging growth capital markets firms are embracing the Reg A market.
Chicken Soup for the Soul Entertainment is the brainchild of its CEO, Bill Rouhana, who founded and built Winstar Communications into an $11 billion broadband provider during the 1990s internet boom. Rouhana decided to take the best-selling books to the video content world and teamed up with a company co-owned by celebrity Ashton Kutcher called A Plus to distribute the video content through its platform. After Kutcher became familiar with the company, and Rouhana’s leadership, he became an investor. The company also partners with The Learning Channel for television distribution and has two original shows; “Hidden Heroes” and “Project Dad”.
Rouhana knows HCFP from past deal transactions and choose the firm as his lead bookrunner.
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