Genius Brands Int'l (GNUS) Announces $58 Million Registered Direct Offering of Common Stock, Warrants

Genius Brands International, Inc. (“Genius Brands” or the “Company”) (NASDAQ: GNUS) announced today that it has entered into a securities purchase agreement with certain long-standing investors providing for the purchase and sale of 37,400,000 shares of its common stock at a purchase price of $1.55 per share in a registered direct offering, resulting in total gross proceeds of $57,970,000. The shares to be utilized in this transaction are available to the Company through an increase in authorized shares, as approved by the shareholders on August 27, 2020. The investors will receive a warrant to purchase one share of common stock for each share of common stock purchased in the offering. The warrants will be exercisable immediately and have a term of five years and an exercise price of $1.55 per share. The offering is expected to close on or about October 30, 2020, subject to the satisfaction of customary closing conditions.

The net proceeds of this financing will be used for certain accretive future acquisitions, and for the Company’s operations, including, but not limited to, the development, production, distribution and marketing of animated content, including the recently announced SHAQ’S GARAGE, and associated licensed merchandise, and general working capital.

The Special Equities Group, a division of Bradley Woods & Co. Ltd., acted as the placement agent for this transaction.

The shares of common stock, warrants and shares of common stock underlying the warrants described above are being offered by the Company through a prospectus supplement pursuant to the Company’s shelf registration statement on Form S-3 as previously filed and declared effective by the Securities and Exchange Commission and the base prospectus contained therein (Registration No. 333-248623) and an additional registration statement on Form S-3 filed pursuant to Rule 462(b) (File No. 333-249694), which became automatically effective on October 28, 2020. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Electronic copies of the final prospectus supplement and accompanying base prospectus may be obtained, when available, by contacting The Special Equities Group, a division of Bradley Woods & Co. Ltd., 805 Third Ave., 18th Floor, New York, NY, 10022, at (212) 826-9191, or the Securities and Exchange Commission's website at http://www.sec.gov.

You May Also Be Interested In

• Vincerx Pharma (VINC) Announces Proposed Share and Warrant Offering
• Scilex Holding (SCLX) Prices 15M Share Offering at $1/sh
• Diamondback Energy (FANG) Receives Stockholder Approval for Proposed Transaction with Endeavor Energy Resources, L.P.