Why Redbox Entertainment Inc. (RDBX) stock soared 66%?

2 min read | May 03, 2022 06:17 AM AEST | By Versha Jain

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Why Redbox Entertainment Inc. (RDBX) stock soared 66%? — Image source: © Robwilson39 | Megapixl.com

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Highlights

Redbox Entertainment Inc. (NASDAQ:RDBX) is an entertainment company.

The RDBX stock jumped 66.05% to US$9.93 at 2:05 pm ET on Monday.

Its trading was halted twice on Monday.

The Redbox Entertainment Inc. (NASDAQ:RDBX) stock jumped 66.05% to US$9.93 at 2:05 pm ET on Monday. The stock has been gaining attention since it announced a CFO transition on April 25. Its trading was halted twice at 9:45 am ET and 1:49 pm ET due to volatile trading.

Its trading was halted twice due to volatile trading at 9:45 am ET and 1:49 pm ET.

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On April 28, the company filed an amendment on Form 8-K/A with the SEC, stating that it entered into a Voting and Support Agreement to access the additional US$50 million under its previously announced credit deal with HPS Investment Partners.

The stock has shot up since Friday after the update.

Redbox is an entertainment company focused on media and digital services. Its two operating segments are Legacy Business and Digital Business.

Its Legacy Business operates approximately 38,000 self-service kiosks to rent or purchase movie DVDs. The Digital business offers transactional and ad-supported digital streaming services, including Redbox On Demand, Redbox Free On Demand, and Redbox Free Live TV.

Redbox launched its IPO in November 2020. It currently has a market capitalization of US$121.01 million.

The stock traded in the range of US$27.22 to US$1.61 in the last 52 weeks.

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Financials:

For the fiscal year ended December 31, 2021, its net loss was US$140.76 million compared to US$69.5 million for the previous fiscal year.

The revenue for fiscal 2021 was US$288.5 million compared to US$546.2 million for FY 2020.

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Bottom line:

The market has been volatile this year. Hence, investors should apply due diligence before investing in stocks.

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