Genius Brands International Announces $58 Million Registered Direct Offering
October 28 2020 - 9:15AM
Genius Brands International, Inc. (“Genius Brands” or the
“Company”) (NASDAQ: GNUS) announced today that it has entered into
a securities purchase agreement with certain long-standing
investors providing for the purchase and sale of 37,400,000 shares
of its common stock at a purchase price of $1.55 per share in a
registered direct offering, resulting in total gross proceeds of
$57,970,000. The shares to be utilized in this transaction are
available to the Company through an increase in authorized shares,
as approved by the shareholders on August 27, 2020. The investors
will receive a warrant to purchase one share of common stock for
each share of common stock purchased in the offering. The warrants
will be exercisable immediately and have a term of five years and
an exercise price of $1.55 per share. The offering is expected to
close on or about October 30, 2020, subject to the satisfaction of
customary closing conditions.
The net proceeds of this financing will be used for
certain accretive future acquisitions, and for the Company’s
operations, including, but not limited to, the development,
production, distribution and marketing of animated content,
including the recently announced SHAQ’S GARAGE, and associated
licensed merchandise, and general working capital.
The Special Equities Group, a division of Bradley
Woods & Co. Ltd., acted as the placement agent for this
transaction.
The shares of common stock, warrants and shares of
common stock underlying the warrants described above are being
offered by the Company through a prospectus supplement pursuant to
the Company’s shelf registration statement on Form S-3 as
previously filed and declared effective by the Securities and
Exchange Commission and the base prospectus contained therein
(Registration No. 333-248623) and an additional registration
statement on Form S-3 filed pursuant to Rule 462(b) (File No.
333-249694), which became automatically effective on October 28,
2020. A prospectus supplement related to the offering will be filed
with the Securities and Exchange Commission. This news release
shall not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of these securities in
any state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. Electronic
copies of the final prospectus supplement and accompanying base
prospectus may be obtained, when available, by contacting The
Special Equities Group, a division of Bradley Woods & Co. Ltd.,
805 Third Ave., 18th Floor, New York, NY, 10022, at (212) 826-9191,
or the Securities and Exchange Commission's website at
http://www.sec.gov.
About Genius Brands
International
Genius Brands International, Inc. (Nasdaq: GNUS) is
a leading global kids media company developing, producing,
marketing and licensing branded children’s entertainment properties
and consumer products for media and retail distribution. The
Company’s award-winning ‘content with a purpose’ portfolio includes
the upcoming Stan Lee’s Superhero Kindergarten, starring Arnold
Schwarzenegger and in partnership with Alibaba; Rainbow Rangers for
Nick Jr.; Llama Llama, starring Jennifer Garner, for Netflix;
award-winning toddler brand Baby Genius; adventure comedy STEM
series Thomas Edison's Secret Lab; and entrepreneurship series
Warren Buffett's Secret Millionaires Club, and the recently
announced SHAQ’S GARAGE produced in association with Shaquille
O’Neal and Authentic Brands Group. Through licensing agreements
with leading partners, characters from Genius Brands’ IP also
appear on a wide range of consumer products for the worldwide
retail marketplace. The Company’s new Kartoon Channel! is available
in over 100 million U.S. television households via a broad range of
distribution platforms, including Comcast, Cox, DISH, Amazon Prime,
Sling TV, Apple iOs, Apple TV, Roku, Amazon Fire and more.
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; 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; our
ability to complete this offering and use the proceeds of this
offering in a profitable manner; 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. 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 CONTACT:
T:
844-589-8760ir@gnusbrands.com
Genius Brands (NASDAQ:GNUS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Genius Brands (NASDAQ:GNUS)
Historical Stock Chart
From Sep 2023 to Sep 2024