Sherman Oaks’ Cinedigm Corp. has agreed to sell 20 million shares to Santa Monica-based Bison Entertainment Investment Ltd.

The sale will give Bison majority voting control of Cinedigm and two of seven seats on the Cinedigm board of directors, Cinedigm said.

The transaction, announced Friday after market close, is subject to other approvals, including a review by the Committee on Foreign Investment in the United States. Bison is a wholly owned subsidiary of Hong Kong-based Bison Holding Co. Ltd.

Cinedigm provides services, technology and content for transforming movie theaters into digital and networked entertainment centers.

“We believe this transaction with Bison will be game changing for Cinedigm as it will create multiple significant financial, strategic and operational opportunities for the company,” Chris McGurk, Cinedigm chairman and chief executive, said in a statement.

Cinedigm stock closed down less than 1 percent Tuesday at $1.50 a share. It had a market capitalization of $20.5 million.

Contact media and entertainment reporter Diane Haithman at [email protected]. Follow her on Twitter @dhaithman for the latest in L.A. business news.