Genius Brands International Inc (GNUS)

[rickn23]

I'm talking about the 65+ million shares used to pay off the $13.75 million convertible debt.

From the last 8K

https://www.sec.gov/Archives/edgar/data/1355848/000168316820002039/genius_8k-062320.htm

\ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.



On June 23, 2020, Genius Brands International, Inc. (the “Company”) entered into conversion agreements (the “Conversion Agreements”) with all of its holders (the “Holders”) of senior secured convertible notes (the “Notes”) issued pursuant to that certain Securities Purchase Agreement, dated as of March 11, 2020, by and among the Company and the purchasers identified on the signature pages thereto (the “Purchase Agreement”). Pursuant to the Conversion Agreements, the Holders agreed to (i) prepay in full the Investor Notes (as defined in the Purchase Agreement) in the aggregate principal amount of $4,000,000 that were issued as partial payment for the Notes and (ii) tender conversion notices to the Company for the full conversion of their Notes in the aggregate principal amount of $13,750,000, which shall result in the issuance to the Holders of an aggregate of 65,476,191 shares of common stock, par value $0.01 per share, of the Company (the “Conversion Shares”). In consideration for the repayment of the Investor Notes and conversion of the Notes, the Company agreed to file a registration statement registering the resale of all of the Conversion Shares on or before June 26, 2020.

Edit
If the resale price is below $1, I think it might cause capitulation selling from retail shareholder that bought much higher.