Genius Brands International Inc (GNUS)

[rickn23]

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.