Seaport Global Acquisition Corp. Announces Share Redemption Backstop in Connection with Redbox Business Combination

Seaport Global Acquisition Corp. (NASDAQ: SGAM) ("Seaport Global Acquisition Corp"), a publicly traded special purpose acquisition company, announced today that it has entered into backstop subscription agreements in connection with its proposed business combination with Redbox, America's destination for affordable new-release movies and entertainment.

As previously announced on May 17, 2021, the transaction will be funded by a combination of $145 million of cash held in the trust account of Seaport Global Acquisition Corp., and a fully committed PIPE of $50 million.

The backstop agreements, which total up to $36 million, ensure that Redbox will have the capital to fund its digital transformation and expansion initiatives. These backstop agreements should ensure the minimum cash condition required of the business combination agreement will be met.

The Special Meeting of Seaport Global Acquisition Stockholders (“Special Meeting”) to approve the combination will be held on October 20, 2021 at 10:00 a.m. ET. If certain of the proposals at the Special Meeting are approved, the parties anticipate the business combination will close shortly thereafter, subject to the satisfaction or waiver (as applicable) of all other closing conditions.

Upon closing, Redbox's common stock is expected to trade on Nasdaq under the ticker symbol RDBX.

“We appreciate the vote of confidence in Redbox’s digital future expressed by Seaport Global Acquisition and our existing investors,” said Galen Smith, CEO of Redbox. “Redbox is one of the most trusted brands in the entertainment industry, and we have a unique opportunity to extend the value we deliver to consumers as they cut the cord and search for affordable entertainment. We look forward to completing the combination and demonstrating our progress as a public company under the RDBX symbol.”

Details of Backstop Agreements

On October 11, 2021, Seaport Global Acquisition Corp. entered into backstop subscription agreements with certain parties (the “Backstop Subscribers”), including an affiliate of funds managed by affiliates of Apollo Global Management, Inc. and funds managed by affiliates of Seaport Global Acquisition Corp., pursuant to which the Backstop Subscribers have each agreed to subscribe for and purchase, in aggregate, up to 3,564,356 shares of SGAC’s Class A common stock, for a purchase price of $10.10 per share, in the event that more than 10,810,644 public shares of SGAC are submitted for redemption in connection with the business combination. The number of shares to be purchased pursuant to the backstop subscription agreements, in the aggregate, will be equal to the number of public shares submitted for redemption, if any, in excess of 10,810,644 (up to 3,564,356 shares).