An investigation on behalf of investors of RLJ Entertainment, Inc. (NASDAQ: RLJE) in connection with the proposed takeover was announced and NASDAQ: RLJE stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 08/10/2018 -- An investigation was announced concerning whether the takeover of RLJ Entertainment, Inc. is unfair to NASDAQ: RLJE stockholders.
Investors who purchased shares of RLJ Entertainment, Inc. (NASDAQ: RLJE) and currently hold any of those NASDAQ: RLJE shares have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain officers and directors of RLJ Entertainment, Inc. breached their fiduciary duties owed to NASDAQ: RLJE investors in connection with the proposed acquisition.
Silver Spring, MD based RLJ Entertainment, Inc., a digital channel company, controls, co-produces, and owns a library of content in British mysteries and dramas, independent feature films, and urban content in the United States, the United Kingdom, and internationally.
On , July 30, 2018, AMC Networks Inc. (NASDAQ: AMCX) and RLJ Entertainment, Inc. (NASDAQ: RLJE), announced that they have entered into an agreement for AMC Networks to acquire RLJ Entertainment in a going-private merger. In the merger, RLJ Entertainment's outstanding common stock (other than shares owned by Mr. Johnson, AMC Networks and their respective affiliates) will be converted into the right to receive $6.25 per share in cash, without interest; the holders of the Company's outstanding preferred stock (other than affiliates of AMC Networks) will be offered the opportunity to elect to receive $7.8125 in cash for each underlying "as converted" share of Company common stock in accordance with the terms of such preferred stock; and the holders of warrants (other than Mr. Johnson, AMC Networks and their respective affiliates) will be paid the excess of the $6.25 per share merger consideration over the per share exercise price of their warrants. In accordance with its terms, holders of preferred stock who decline to accept the $7.8125 cash offer for their shares will be entitled to receive for each share of preferred stock a new share of preferred stock to be issued by the Company after the merger.
However, given that at least one analyst has set the high target price for NASDAQ: RLJE shares at $8.00 per share, the investigation concerns whether the offer is unfair to NASDAQ: RLJE stockholders. More specifically, the investigation concerns whether the RLJ Entertainment Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
RLJ Entertainment, Inc. reported that its annual Total Revenue rose from $80.23 million in 2016 to $86.30 million in 2017, and that its Net Loss declined from $21.87 million in 2016 to $6.12 million in 2017.
Shares of RLJ Entertainment, Inc. (NASDAQ: RLJE) closed on August 9, 2018, at $ 6.17 per share.
Those who are current investors in RLJ Entertainment, Inc. (NASDAQ: RLJE) shares have certain options and should contact the Shareholders Foundation.
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