“Only a few days ago, it announced that it was forgiven for a $2.2 million Paycheck Protection Program ( ) loan. East-West Bank paid off not only the loan in full but the principal and interest of the loan as well. This is a big deal and should reflect positively on the companies moving forward. While the number may not seem that large, any debt reduction is almost always met with positive sentiment from investors.
“We are very pleased to receive the notice of forgiveness of our entire loan and associated interest. We remain grateful for the financial support that the CARES Act provided in response to the COVID-19 pandemic. This helped Cinedigm move into a very solid position now financially with virtually no debt and a fast-growing streaming business.”
Gary Loffredo, President, and CEO of Cinedigm
The sentiment from Loffredo shows that investors should keep a close eye on CIDM’s next . Because debt is a large factor for how positively investors see a company, this massive reduction should be considered. So, with all of this in mind, is CIDM on your list of penny stocks to watch right now?”