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Posted On: 10/21/2025 10:41:51 AM
Post# of 25907
$TOON Kartoon Studios Announces $7.3 Million Financing Priced at Market with Single Institutional Investor
https://www.globenewswire.com/news-release/20...estor.html
Capital infusion fuels the global launch of Winnie & Friends, the Stan Lee Universe expansion, and the Bitcoin Brigade rollout
Investment validates Kartoon Studios’ strategic direction
BEVERLY HILLS, Calif., Oct. 20, 2025 (GLOBE NEWSWIRE) -- Kartoon Studios, Inc. (NYSE American: TOON) (the “Company”), a leading global producer and distributor of premium children’s and family entertainment, today announced it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale of approximately $7.3 million of equity in the Company.
The closing of the Offering is expected to occur on or about October 22, 2025, subject to the satisfaction of customary closing conditions, including approval by NYSE American. The gross proceeds from the Offering are expected to be approximately $7.3 million before deducting placement agent fees and other offering expenses and assuming that none of the common warrants are exercised. The potential additional gross proceeds to the Company from the common warrants, if fully exercised on a cash basis, will be approximately $7.3 million. No assurance can be given that any of the common warrants will be exercised. The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes. This capital infusion will fuel the global launch and marketing of the upcoming Hundred Acre Wood’s Winnie & Friends, Stan Lee Universe expansion, Bitcoin Brigade rollout, and ongoing growth and content acquisition for Kartoon Channel!’s streaming service.
The investor will purchase 3,000,000 shares of common stock and pre-funded warrants to purchase up to 6,903,049 shares of common stock in a registered direct offering and common warrants to purchase up to 9,903,049 shares of common stock in a concurrent private placement (together with the registered direct offering, the "Offering"
. The combined purchase price is $0.738 per each share of common stock and accompanying common warrant and $0.737 per each pre-funded warrant and accompanying common warrant. The common warrants issued pursuant to the concurrent private placement will have an exercise price of $0.738 per share, will be exercisable after the six month anniversary of the date of issuance, and at any time thereafter up to the fifth anniversary of the initial exercise date. The investor has agreed not to sell any Company securities until December 31, 2025, at a sale price less than $1.00.
Dawson James Securities, Inc. is acting as placement agent for the Offering.
The common stock, the pre-funded warrants and the underlying shares will be issued in a registered direct offering pursuant to an effective shelf registration statement on Form S-3 (File No. 333-276259) previously filed with the U.S. Securities and Exchange Commission (the "SEC" , under the Securities Act of 1933, as amended (the "Securities Act" , and declared effective by the SEC on January 5, 2024. The common warrants will be issued in a concurrent private placement. A prospectus supplement describing the terms of the proposed registered direct offering will be filed with the SEC and once filed, will be available on the SEC's website located at http://www.sec.gov.
The private placement of the common warrants and the underlying shares will be made in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act and/or Regulation D thereunder. Accordingly, the securities issued in the concurrent private placement may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
https://www.globenewswire.com/news-release/20...estor.html
Capital infusion fuels the global launch of Winnie & Friends, the Stan Lee Universe expansion, and the Bitcoin Brigade rollout
Investment validates Kartoon Studios’ strategic direction
BEVERLY HILLS, Calif., Oct. 20, 2025 (GLOBE NEWSWIRE) -- Kartoon Studios, Inc. (NYSE American: TOON) (the “Company”), a leading global producer and distributor of premium children’s and family entertainment, today announced it has entered into a securities purchase agreement with a single institutional investor for the purchase and sale of approximately $7.3 million of equity in the Company.
The closing of the Offering is expected to occur on or about October 22, 2025, subject to the satisfaction of customary closing conditions, including approval by NYSE American. The gross proceeds from the Offering are expected to be approximately $7.3 million before deducting placement agent fees and other offering expenses and assuming that none of the common warrants are exercised. The potential additional gross proceeds to the Company from the common warrants, if fully exercised on a cash basis, will be approximately $7.3 million. No assurance can be given that any of the common warrants will be exercised. The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes. This capital infusion will fuel the global launch and marketing of the upcoming Hundred Acre Wood’s Winnie & Friends, Stan Lee Universe expansion, Bitcoin Brigade rollout, and ongoing growth and content acquisition for Kartoon Channel!’s streaming service.
The investor will purchase 3,000,000 shares of common stock and pre-funded warrants to purchase up to 6,903,049 shares of common stock in a registered direct offering and common warrants to purchase up to 9,903,049 shares of common stock in a concurrent private placement (together with the registered direct offering, the "Offering"
. The combined purchase price is $0.738 per each share of common stock and accompanying common warrant and $0.737 per each pre-funded warrant and accompanying common warrant. The common warrants issued pursuant to the concurrent private placement will have an exercise price of $0.738 per share, will be exercisable after the six month anniversary of the date of issuance, and at any time thereafter up to the fifth anniversary of the initial exercise date. The investor has agreed not to sell any Company securities until December 31, 2025, at a sale price less than $1.00. Dawson James Securities, Inc. is acting as placement agent for the Offering.
The common stock, the pre-funded warrants and the underlying shares will be issued in a registered direct offering pursuant to an effective shelf registration statement on Form S-3 (File No. 333-276259) previously filed with the U.S. Securities and Exchange Commission (the "SEC"
, under the Securities Act of 1933, as amended (the "Securities Act" , and declared effective by the SEC on January 5, 2024. The common warrants will be issued in a concurrent private placement. A prospectus supplement describing the terms of the proposed registered direct offering will be filed with the SEC and once filed, will be available on the SEC's website located at http://www.sec.gov. The private placement of the common warrants and the underlying shares will be made in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act and/or Regulation D thereunder. Accordingly, the securities issued in the concurrent private placement may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
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