Not a bad financing except for the warrants. I think the way they are set up if the stock went on a run the warrant holders could exercise and sell into it if they wanted some quick money. The warrants should have priced higher to give shareholders some hope it could go up.
On January 8, 2018, Genius Brands International, Inc. (the “Registrant” or "Company"), entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”) pursuant to which the Company sold approximately $1.8 million of its common stock, par value $0.001 per share (the “Common Stock”) and warrants (the “Warrants” and, together with the Common Stock, the “Securities”) to the Investors (the “Offering”). Pursuant to the Purchase Agreement, the Company will issue to the Investors approximately 592,000 shares of Common Stock at a per share price of $3.00 and Warrants to purchase approximately 592,000 shares of common stock. The Warrants will be immediately exercisable, will be exercisable for a period of five years from the closing date and will have an exercise price of $3.00 per share. The closing of the sale of these securities under the Purchase Agreement is expected to occur on or about January 10, 2018.
On January 6, 2018, the Company entered into an Engagement Letter (the “Engagement Letter”) with Chardan Capital Markets, LLC (“Chardan” or the “Placement Agent”) pursuant to which the Company engaged Chardan as its placement agent in connection with the Offering. The Placement Agent agreed to use its reasonable best efforts to arrange for the sale of the Securities. The Company agreed to pay the Placement Agent a placement agent fee in cash equal to $100,000 and Warrants to purchase 93,000 shares of Common Stock. The Engagement Letter also contains representations, warranties, indemnification and other provisions customary for transactions of this nature.
