Cineverse Corp. Enters $3.125M Loan to Finance Pan's Labyrinth Re-release

What Happened

• Cineverse Corp. (through subsidiary Cineverse Pans LLC) announced on August 31, 2026 (dated August 28, 2026) a Loan and Security Agreement with BondIt LLC for a term loan up to $3,125,000. The loan matures October 26, 2027 and includes a minimum interest commitment of $179,000 covering up to a seven-month period after closing; thereafter unpaid principal and interest incur monthly interest of 1.39%.
• The company also executed a Guaranty Agreement dated August 28, 2026 under which Cineverse guarantees the loan up to $2,343,750. The guaranty is subordinated to Cineverse’s East West Bank credit facility under an intercreditor agreement.

Key Details

• Lender/Parties: BondIt LLC (lender) and Cineverse Pans LLC (borrower); guaranty by Cineverse Corp.
• Principal amount: up to $3,125,000; maturity date: October 26, 2027.
• Interest/fees: $179,000 minimum interest commitment for up to seven months; then 1.39% monthly interest on outstanding amounts.
• Security & repayment terms: loan secured by first-priority interest in the Film (Pan’s Labyrinth), related distribution agreements and proceeds; after repayment, BondIt is entitled to 11.25% royalty on specified film receipts until it recovers up to 1.75x the principal and interest (inclusive).
• Use of proceeds: reimburse advances to the licensor for the Film’s re-release, fund the 3D conversion, and pay part of the East West Bank facility.

Why It Matters

• This transaction creates a secured, short-term financial obligation tied specifically to the re-release of Pan’s Labyrinth and increases Cineverse’s near-term funded liabilities (including a company guaranty capped at $2.343M).
• The lender’s post-repayment royalty (11.25% up to 1.75x) creates a contingent payout stream linked to film revenues, and the loan’s collateral gives the lender priority on film-related receipts. The guaranty’s subordination to East West Bank preserves the bank’s senior position under the intercreditor agreement.
• Investors should note the financing is project-specific (the Film) and includes both fixed minimum interest commitments and a royalty structure that could reduce future film cash flows until the lender’s capped recovery is met.