Kartoon Studios Completes Public Offering, Generates Approximately $4.5 Million in Gross Proceeds

On December 18, 2024, Kartoon Studios, Inc. (NASDAQ:TOON) finalized a public offering, as per its recent 8-K filing with the Securities and Exchange Commission. The offering, which closed on December 16, 2024, involved the sale of 4,375,000 shares of common stock, pre-funded warrants, Series A common warrants, and Series B common warrants.

The public offering price for each Share, along with associated Common Warrants, was set at $0.57. Concurrently, each Pre-Funded Warrant, in conjunction with its associated Common Warrants, was priced at $0.569. As a result, Kartoon Studios accrued total gross proceeds of roughly $4.5 million from the Offering, before deduction of placement agent fees and other associated expenses.

The net proceeds from this event are earmarked primarily for bolstering working capital and general corporate purposes, which will include allocations for research and development within the company.

Regarding the offered securities, the Pre-Funded Warrants boast an exercise price of $0.001 per share, making them immediately exercisable. In contrast, the Common Warrants come with an exercise price of $0.57 per share and can be exercised post the effective date of the Stockholder Approval. The Series A Warrants are slated to expire five years after the Warrant Exercise Date, while the Series B Warrants will lapse eighteen months after the Warrant Exercise Date.

Kartoon Studios is mandated to seek Stockholder Approval for the Common Warrants’ exercise under NYSE American listing guidelines. Should this not be achieved at the initial special meeting, subsequent meetings will be convened until such approval is obtained or the Common Warrants are no longer in effect.

The adjustment of exercise prices and the number of Common Stock shares available upon exercise will be contingent upon specific stock dividends and distributions, alongside stock splits and other relevant events perpetuated by market dynamics.

Furthermore, Kartoon Studios has filed the necessary documents to provide a comprehensive overview of the Series A Warrants, Series B Warrants, and Pre-Funded Warrants. These are available as Exhibits 4.1, 4.2, and 4.3 to the 8-K filing.

In connection with the Offering, the company has also entered into a securities Purchase Agreement, which outlines specific restrictions concerning the issuance of additional securities and registration of new securities.

Roth Capital Partners, LLC, played the role…

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kartoon Studios’s 8K filing here.

About Kartoon Studios

Kartoon Studios Inc, a content and brand management company, creates, produces, licenses, and broadcasts educational and multimedia animated content for children worldwide. The company offers Shaq’s Garage, a children’s animated series about the secret adventures; Cocomelon that provides 3D animation videos of traditional nursery rhymes and children’s songs; Eggventurers, a preschool animated series; Barbie Productions that provides animated Barbie series; Octonauts, a children’s television series based on the children’s books; Roblox Rumble, an elimination-style competitive reality series; and Spin Master Productions.