Genius Brands International Inc (GNUS)

[tdeck]

Those shares were not converted/sold to raise cash, those shares are from a long time original investor from May 14, 2014 the Series A these shares had restrictions and covenants and after 5 years of two RS's they wanted the deal changed so that they could convert their stock at a better price so that the price/% would be reflective of their original agreement.

It had been amended numerous times down to $3 and change then .76 and when the stock was pushed to what it had been by shorting/etc it was a okay we will change price to .21 and they would have to do it in a certain amount of time also the warrants that were adjusted at the same time.

This way no one could convert, buy warrants etc after the stock appreciated in value as times they have now changed.

Read all the filings back to 2014, I have.

This is a cleaning up the books thing in regards to all longtime shareholders and warrant holders for way back, not to raise money.

"Item 3.03. Material Modification to Rights of Security Holders.



"Pursuant to the Settlement Agreement, the Company agreed to adjust the Conversion Price (as defined in the Certificate of Designations) to $0.21 and the parties agreed to terminate and deem null and void that certain Securities Purchase Agreement, dated as of May 14, 2014, by and among the Preferred Holders and the other parties signatories thereto, with respect to the Preferred Holders. The Preferred Holders, constituting the holders of at least a majority of the outstanding Preferred Shares (the “Required Holders”), agreed and consented to an amendment and restatement of the Certificate of Designations, a form of which is attached hereto and incorporated herein as Exhibit 3.1. The parties also agreed to customary releases and a covenant not to sue as further contained in the Settlement Agreement"



Things are/have been changing rather drastically in just the last 12 months and everyone is aware of that, like Psycho Bunny I bet 99% had no clue or forgot that Genius had a piece of that from working with them as the brand was built up over the past 4 1/2 years, but 2018 the first year it (Psycho Bunny) started taking off making $$ we saw our first piece Q1 2019 $168K since then the business has literally taken off in the US and now the $$ shall flow.

Llama Llama all are aware that after 4 1/2 years is really starting to take off as well and that spigot is starting to flow rather well.

And after 4 years Rainbow Rangers is starting to turn the spigot on.

In 2020 Kindergarten Superhero which won't take years for merchandising as that starts with the release the spigot will start to flow.

So I guess and easy way to put it is now, in 2020 the cash is starting to flow and will flow more and more as time goes forward.

Fell bad for many that lived through the past 4-5 years, but it is what it is, takes time many branded items, cartoon series don't take off and go worldwide and start merchandising 100's of items or have a clothing line that is starting to lay its foot print in the US.

Genius has said from the beginning it takes years, some failure some not so big (Space Bop, Dear Frank, Celessence, Warren Buffet cartoon, etc) and the story has never changed...……. you have to first catch lightening in a bottle work like a mothe to get it doen and hope people see what you do and after 4-5 year the money starts rolling with merchandising and royalties in Psycho Bunny's case.

Sucks to wait, its like a biotech in many ways big risk of failure, heavy dilution, RS's etc til you get those few biggies that are what they call in the business "evergreen" brands they are called that because once they start making dough they are "evergreen" now we got three just starting to smoke and IMHO and only MHO with the fact the Governator is in Kindergarten Superhero, Alibaba is on for help with Asian launch and partnering and that merchandising will start from the jump we will have 4 by years end.

Took a while now its time as the CEO said in October's shareholder letter when discussing the cartoon series successful buildup...…
We have always said that it takes 4-5 years to take a kids property from creation through development, production, broadcast, distribution, licensing, and then to the retail shelf. We are finally now arriving to that spot with our two tentpole properties, Rainbow Rangers and Llama Llama.

Now, with the launch of Stan Lee's Superhero Kindergarten, and our transformational partnership announced today with Alibaba, we will soon have our third and largest global tentpole."

Then there is Psycho bunny now opening stores in the US left and right after 5 years of hard work determination by all involved, did you see the 2018 YouTube video of the founders look at about 11 minutes in the one said up until 2 years prior he and the other had been working two jobs trying to get it going, well Genius was right their two, and as shows with the 2018 royalty payment in Q1 2019 money is now in for all involved and if 2019 5 new US stores 2 more international and the "in" crowd loving it, it should only get better.

I am dying to see what royalties are received Q1 2020 for the 2019 royalties $169K for 2018 when it wasn't even starting big yet 2019 was good, 2020 gonna be better. Cash is coming, everyone need to sit back and breathe.

So we good, the 2014 Series A getting sorted, not selling for cash raise, selling to settle a dispute. And I think we all see the money is starting to roll in, any guesses on royalties for 2019? Me gonna say $500-600K the last 5 stores weren't opened til Nov/Dec we shall see. But I know I am watching for more stores, as they want to grow the brand quick like.

Read this again, and then look back at all that has been happening especially the last 3 Q's of 2019 Stevie Wonder can see the writing on the wall.

https://www.gnusbrands.com/news-media/press-releases/detail/1044/genius-brands-international-issues-shareholder-letter

And go back through that Psycho bunny post, see all that happened since we finally got that first significant royalty check, a lot. Look back at all the new items merchandised this year and for hit cartoons two of them and another, the biggest coming this year.

How anyone can not see the writing on the wall is beyond me. Sorry if I repeated myself in the post I ramble and haven't the time to edit, to many left handed cigarettes this evening and a Saaphire and tonic or three.

Peace out.