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It enables dilution of your percentage ownership of the company. The company is able to sell more shares.
If you look at proposal 8:
" To approve, in accordance with 713(A) of the NYSE American Company Guide, the issuance of more than 19.99% of our outstanding Common Stock upon the exercise of certain common stock purchase warrants (Proposal 8); and"
Beyond proposal 8, the company is likely to keep selling shares as long as the company needs money to keep afloat. The company has never been profitable.
My two cents: it will enable the share price to go into a death spiral. The company will sell shares at ever lower prices until no one will buy shares.
8K filed. It outlines the repricing of warrants, shares converted and new warrants issued. The offer letter to warrant holder is also included and is dated 6/26, when the share price started dropping.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1355848/000168316823004635/kartoonstudios_8k.htm
Ex 10.1 (at the bottom of the filing) is the offer letter to warrant holders. It says it dates back to 6/21/2023
https://www.sec.gov/Archives/edgar/data/1355848/000168316823004433/kartoonstudios_ex1001.htm
Good luck!
And, now, what everyone has been waiting for SEC PRE 14A filing Proxy solicitation for company meeting (August 25).
Among the nine items to vote for are increasing the authorized common shares to 190 million (there are 10 million preferred shares). Also, issuing 19.99% of outstanding common shares with the exercise of warrants.
https://www.sec.gov/Archives/edgar/data/1355848/000168316823004584/kartoon_pre14a.htm
Now, prospectus supplement has been filed on the warrant conversions and selling of shares.
This is why the share price dropped. The shares were probably sold today.
The 8K filed this morning. CEO Andy has repriced warrants from $23.70 per share down to $2.50 per share. This is below where TOON has been trading. New warrant, for double the shares, are being granted also.
I'm guessing this was planned for some time and has reduced the need for some institutions to buy shares on the open market (which would have spike the share price higher).
It's an indication the company has bad fiscal policy.
GNUS has made it onto the preliminary list for the Russell Microcap additions (I think these are the bottom 1,000 stocks in the Russell 2000 index).
https://www.ftserussell.com/resources/russell-reconstitution
https://content.ftserussell.com/sites/default/files/rmicro_additions_20230519.pdf
Fintel is showing institutional ownership is below 20,000 shares. Shares were probably dumped around the reverse split and are just now being reported.
https://fintel.io/so/us/gnus
Ocean Tomo, a part of J.S. Held, Announces Successful Conclusion of Uniform Commercial Code Disposition Sale Process to Satisfy Pow! Entertainment Debtor Obligations
https://www.benzinga.com/amp/content/32345243
Congratulations to Michael Hirsh!
Michael Hirsh to Receive Animaze’s Lifetime Achievement Award
https://www.awn.com/news/michael-hirsh-receive-animazes-lifetime-achievement-award
I'm sure CEO Andy/GNUS will recognize this achievement at some time.
I didn't get one yet, either (Charles Schwab and Co.). But, it's probably a matter of time before it comes.
If you do reach out to Herve you might ask him if he is using IPLY resources to help his other company ("Company Pasta"). It's operating out of the same offices.
https://www.linkedin.com/in/herv%C3%A9-caen-8a2721a
https://www.linkedin.com/company/company-pasta?trk=public_profile_topcard-current-company
I'm currently waiting for the results of the Stan Lee IP auction.The auction was held last Friday. Either GNUS gets their money back or the IP.
https://www.prnewswire.com/news-releases/ocean-tomo-transactions-announces-ucc-public-notice-of-disposition-of-pow-entertainment-intellectual-property-assets-301752004.html
I'd expect Q1 results to be good, due to the TOHO investment.
I'd urge caution on buying while the share price goes up, though. Unless the company can shed millions of dollars in spending a quarter, the company is likely to keep facing losses. Dilution or bankruptcy will follow.
There are lots of reasons the share price isn't rising. Probably the two best reasons are, the company continues to lose money and the company isn't very transparent. Press releases often lack a lot of details that most companies will include. I, also, think retail shareholder have lost confidence in the CEO (Andy Heyward).
Revenue was good because GNUS acquired a company with revenue (WOW Unlimited Media), not because GNUS's core business grew.
Original Documentary ‘Stan Lee’ Arrives on Disney+ June 16
https://www.marvel.com/articles/tv-shows/stan-lee-original-documentary-june-16-disney-plus
Yep, and last year they announced that they were not thinking of doing a reverse split. Look at how that turned out.
Short interest was about 3.2 million shares as of 2/15/2023. I assume it's split adjusted.
https://www.nasdaq.com/market-activity/stocks/gnus/short-interest
Earnings' report?
10K (includes Q4) is due at the end of March
Q1 is due mid May.
Kidaverse Roblox Rumble | Trailer | Kartoon Channel!
It's better than writing off the loans to POW!.
Ocean Tomo Transactions Announces UCC Public Notice of Disposition of POW! Entertainment Intellectual Property Assets
https://www.prnewswire.com/news-releases/ocean-tomo-transactions-announces-ucc-public-notice-of-disposition-of-pow-entertainment-intellectual-property-assets-301752004.html
It's to satisfy debt to GNUS ($1.250 million loan and other secured obligations).
Ocean Tomo Transactions Announces UCC Public Notice of Disposition of POW! Entertainment Intellectual Property Assets
https://www.prnewswire.com/news-releases/ocean-tomo-transactions-announces-ucc-public-notice-of-disposition-of-pow-entertainment-intellectual-property-assets-301752004.html
Failure to delivers, doesn't look massive. I doubt there is enough naked short selling to make much of a difference.
https://fintel.io/sftd/us/gnus
There are not enough shares short to produce a squeeze.
Information to the contrary probably doesn't take into account the reverse split.
I'm guessing it hit its lows today. it should march back up as GNUS approaches the 10-day compliance requirement. with the severe drop I would expect short sellers to start covering. Who knows what other news GNUS has been holding back.
$2 to $4 is probably around fair value, +/- cash (minus debt). GNUS's ownership of WOW Unlimited Media is where most of the value is.
Drops like this are usually the result of expected dilution. The authorized shares were split-adjusted down to 40 million, so no near-term danger of mass dilution.
Minimum effort? There isn't anything on their Instagram or Facebook pages. There was discussion on this two days ago and reporters probably questioned IPLY before that. No response at all would have had people thinking Interplay was dead.
Earthworm Jim 4 has seemingly been canned
https://mynintendonews.com/2023/02/09/earthworm-jim-4-has-seemingly-been-canned/
Marvel Comic Book Men's Stan Lee Signature 'Nuff Said Black T-Shirt
https://www.target.com/p/marvel-comic-book-men-s-stan-lee-signature-nuff-said-black-t-shirt/-/A-88466211
The ad says that it is officially licensed but, it doesn't say who it's licensed from. It could be from the Disney/Marvel license.
New intro video on GNUS's home website. It introduces the various brands.
https://www.gnusbrands.com/
Execs to Discuss YouTube Strategies at TV Kids Festival
https://worldscreen.com/tvkids/execs-to-discuss-youtube-strategies-at-tv-kids-festival/
Your Family Entertainment has released several episodes of "Shaq's Garage" on Vimeo.
https://vimeo.com/search?q=Shaq%27s%20Garage
Blue Origin, SMAC Productions, and Genius Brands to Develop and Produce “BLUE ORIGIN SPACE RANGERS,” A Children’s Animated Adventure Series
https://www.gnusbrands.com/news/press-releases/detail/1174/blue-origin-smac-productions-and-genius-brands-to-develop
Celebrating a Century of Stan Lee at Los Angeles Comic Con
https://therealstanlee.com/life-of-an-icon/celebrating-a-century-of-stan-lee-at-los-angeles-comic-con/
IPLY is the IP rights holder. I'm guessing whatever broadcast/streaming service it's going to will pay for it.
It's been a year since the original announcement. I'm guessing Parandi got the script done and they are ready to cast voice actors and start animation
‘Searching For Sugar Man’ Producer Passion & Circus Studios Broaden Partnership & Are Working On ‘Earthworm Jim’ Animated TV Series
https://deadline.com/2022/11/searching-for-sugar-man-earthworm-jim-passion-pictures-circus-studios-1235180113/
The pdf presentation on GNUS's website is gone. It looks like it will be updated. I think the last one was from 2020.
https://ir.gnusbrands.com/presentations
LA comic con working with GNUS to do some sort of Stan Lee centennial event.
The comic con is December 2-4th. It looks like the only way to access the programs is through their app.
https://www.thepopverse.com/los-angeles-comic-con-2022-lacc-tickets-panels-when-is-convention-center
https://comicconla.com/
BOXED TEE MARVEL STAN LEE TS
Funko boxed Stan Lee t-shirt, SRP $19.99 for sale in June 2023
https://www.previewsworld.com/Catalog/JUN228068
Thanks.
Genius Brands Signs National Retail Deal With Hot Topic for the Stan Lee Brand
https://www.gnusbrands.com/news/press-releases/detail/1173/genius-brands-signs-national-retail-deal-with-hot-topic-for