Genius Brands International, Inc. "Genius Brands" (NASDAQ: GNUS),
the global brand management company that creates and licenses
multimedia entertainment content for children, released a letter to
shareholders from Chairman & CEO Andy Heyward. The complete
letter follows:
Dear Friends and Shareholders: This morning we announced
that ARNOLD SCHWARZENEGGER has entered
into an agreement to become a significant investor in Genius Brands
International. I want to share with you the importance of this
event. Our upcoming tentpole series STAN
LEE’S SUPERHERO
KINDERGARTEN not only stars Arnold, but he is also
Co-Executive Producer. Governor Schwarzenegger will lend his
signature voice, his likeness in animation, and
his cache and standing to launch and promote the series.
The Governor has elected to take his compensation, not in
cash, but in warrants to purchase shares of Genius Brands common
stock (Nasdaq: GNUS). His tens of millions of
followers across Facebook, Instagram, and Twitter will bring not
only a devoted following to the series, but to Genius Brands
overall. This, added to the millions of Stan
Lee followers, puts rocket fuel in our Genius Brands’
tanks, and it would be impossible to overstate the importance of
this event.
Governor Schwarzenegger and Stan Lee had been friends for years
and sought to develop an animated children’s property
together. STAN LEE’S SUPERHERO KINDERGARTEN is now the
result of this collaboration. The development was begun
by Fabian Nicieza, one of Stan’s longtime
collaborators, and himself, creator of Deadpool and
writer of over 1,000 Marvel and DC Comic books,
including Spider-Man, Batman, and
the Avengers, among others. The Superhero
Kindergarten series episodic writing will be done
by Steven Banks (head writer
of Sponge Bob Square Pants). Added to this team is
multi-Emmy Award-winning director, Mike
Maliani, who worked with me when we were in the Walt
Disney Company together. Stan Lee’s Superhero Kindergarten is about
as strong and perfect a property, as I have seen in almost four
decades of children’s television.
Stan Lee’s Superhero
Kindergarten (series synopsis) In a secret
classroom, underneath what appears to be an ordinary school, a very
special group of kids have come together with the most unusual
superpowers, such that could only have come from the mind of Stan
Lee, the creator of Spider-Man, Iron Man, the Incredible Hulk,
X-Men, Black Panther, Thor, Guardians of the Galaxy, and The
Avengers. A diverse group of kindergarteners have been given
unusual superpowers. Arnold Armstrong (a retired superhero, Captain
Courage), was secretly recruited to teach these children how to
develop their unusual gifts and use them for the good of mankind
(learning lessons along the way in health, exercise, nutrition,
anti-bullying, and inclusivity). Of course, as kindergarteners, not
everything will go as planned, and often times, hi-jinks and
the unforeseen, ensues. In a wink to his Spider-Man creation, Stan
said, “With great power, comes great mess.” In fact, the
great Stan Lee, who audiences worldwide know from his cameos in the
Marvel films, will return in animated form with his digitally
remastered voice and a cameo in each episode of Superhero
Kindergarten. Whether the school janitor, or the bus driver,
or a cafeteria server, the treat of discovering Stan Lee, will be
like finding Where’s Waldo in each episode.
We were fortunate to have been approached
by Alibaba, the biggest company in
China, where both Arnold Schwarzenegger and Stan Lee are
celebrities of iconic stature, to be our partner, and with whom we
have concluded a deal. Alibaba will broadcast the series in
China on their national children’s platform, and also will be
the agent for all consumer products and commerce in China, which we
will share with them as partners. Between Amazon
Prime as our U.S. broadcaster,
and Alibaba as our Chinese broadcaster,
we have secured the two most important platforms in the two most
valuable territories in the world. Having said the above, with the
launch of our KARTOON CHANNEL! this
week, and the extraordinary response we have seen from the series
trailer, just completed last week, we have decided to
place STAN LEE’S SUPERHERO KINDERGARTEN on not only
Amazon Prime, but the
full KARTOON
CHANNEL! footprint. It
reflects our commitment to providing the very best of top tier
children’s entertainment in building KARTOON CHANNEL! It
will become the #1 pre-eminent destination for children and will
become a ‘tentpole of original content’ for the channel.
Not only is Arnold Schwarzenegger a legendary entertainer and a
leading voice in promoting children’s education and fitness, he is
a uniquely accomplished investor who brings the perspective of
having been Governor of California, the 5th largest economy in
the world. I can think of no better or smarter partner to have
inside Genius Brands. Now, relax and enjoy the link below for a
"sneak peek" into STAN
LEE’S SUPERHERO KINDERGARTEN. As
Arnold says to the class at the end of each day…
‘Hasta Manana,
Heroes!’
Watch the Stan Lee Superhero
Kindergarten trailer:
Link: https://app.shift.io/review/5ee54471e4b0fb689c722590
Sincerely,
Andy Heyward Chairman & CEO Genius Brands International,
Inc.
P.S. Kartoon Channel! has launched today and is
up and running! It is available on the
AppleTV app, Android App, Amazon Fire, and Roku, among
others. Because of today's breaking news regarding Governor
Schwarzenegger we will release the schedule tomorrow morning.
Forward Looking Statements: Certain statements
in this press release constitute "forward-looking statements"
within the meaning of the federal securities laws. Words such as
"may," "might," "will," "should," "believe," "expect,"
"anticipate," "estimate," "continue," "predict," "forecast,"
"project," "plan," "intend" or similar expressions, or statements
regarding intent, belief, or current expectations, are
forward-looking statements. While the Company believes these
forward-looking statements are reasonable, undue reliance should
not be placed on any such forward-looking statements, which are
based on information available to us on the date of this release.
These forward looking statements are based upon current estimates
and assumptions and are subject to various risks and uncertainties,
including without limitation, our ability to generate revenue or
achieve profitability; our ability to obtain additional financing
on acceptable terms, if at all; our ability to repay our
outstanding debt; the potential issuance of a significant number of
shares to our convertible note holders which will dilute our equity
holders; fluctuations in the results of our operations from period
to period; general economic and financial conditions; our ability
to anticipate changes in popular culture, media and movies, fashion
and technology; competitive pressure from other distributors of
content and within the retail market; our reliance on and
relationships with third-party production and animation studios;
our ability to market and advertise our products; our reliance on
third-parties to promote our products; our ability to keep pace
with technological advances; our ability to protect our
intellectual property and those other risk factors set forth in the
“Risk Factors” section of the Company’s most recent Annual Report
on Form 10-K and in the Company's subsequent filings with the
Securities and Exchange Commission (the "SEC"). Thus, actual
results could be materially different. The Company expressly
disclaims any obligation to update or alter statements whether as a
result of new information, future events or otherwise, except as
required by law.
INVESTOR RELATIONS:
IR@GNUSbrands.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ccb16018-e5f3-4846-ad73-c3e51baf12d3
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