Genius Brands Chairman & CEO
“The Second Quarter of 2020 brought with it many exciting and pivotal developments at Genius Brands.
We launched Kartoon Channel! and announced with it the appointment of two of Hollywood’s most accomplished and proven executives,
Additionally, we shared that iconic film director
Finally, and importantly, we raised equity to shore up our balance sheet and we retired our senior secured convertible debt. The company is now free of corporate debt, and with plenty of cash to execute its business plan for the foreseeable future.”
“Genius Brands’ financial position is stronger than ever. We have cash on hand, no corporate debt, and we are in a position to be opportunistic. It’s no secret that we are determined to grow Genius Brands into the dominant force in children’s entertainment, and we have both the human and creative capital with which to do so.
Genius Brands has an impressive list of corporate initiatives, some of which are noted here, others that have been announced over the past few months, and more still that will made public in the weeks and months ahead. This is particularly meaningful at a time when the global pandemic has forced many companies into survival mode and others still into bankruptcy.
Regarding the 10-Q we filed today, I would like to clarify some potentially confusing elements related to the reduction of the conversion price/exercise price of our 2020 Convertible Notes and the associated Warrants. To be clear, the re-valuation of these options and warrants, which is partially a result of fluctuations in our stock price, is a non-cash event. The revaluation adjustments appear as expense charges in our statements of operations for the three and six months ended
Allowing our investors to convert their notes was important to improving our balance sheet. In fact, in doing this we added approximately
“As I have frequently communicated to our shareholders, the steps we have taken over the past few months to shore up our capital position are being done with one goal in mind: providing Genius Brands with the continued financial flexibility to take advantage of the many value-creating opportunities in the sector.
We have already seen how the ability to take advantage of opportunities when they present themselves is helping us grow the company and position us for even greater success. For example, last month we announced an agreement for Stan Lee Universe to be distributed by
In other exciting recent news, Kartoon Channel!’s reach now extends to over 100M
Further expanding our foundation for value creation is also the reason why we are asking our shareholders to support proposals to amend our Articles of Incorporation to increase the authorized number of shares of
The point of these proposals is to allow the company take advantage of unusual current opportunities to acquire exciting assets in the entertainment space – assets that will be accretive to the company. Meanwhile, the Incentive Plan, will further allow us to attract, motivate, and retain individuals who are the best in the business and who are driving our growth strategy to create value.
I strongly believe in the future of Genius and, as one of the largest shareholders in the company, my interests are completely aligned with those of all holders of our common stock. The team at Genius, led by myself, is fully dedicated to creating value for our shareholders.”
About
Forward Looking Statements: Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation, our ability to generate revenue or achieve profitability; our ability to obtain additional financing on acceptable terms, if at all; our ability to repay our outstanding debt; the potential issuance of a significant number of shares to our convertible note holders which will dilute our equity holders; fluctuations in the results of our operations from period to period; general economic and financial conditions; our ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; our reliance on and relationships with third-party production and animation studios; our ability to market and advertise our products; our reliance on third-parties to promote our products; our ability to keep pace with technological advances; our ability to protect our intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and in the Company's subsequent filings with the
MEDIA CONTACT:
pr@gnusbrands.com
INVESTOR RELATIONS CONTACT:
ir@gnusbrands.com
Source:
2020 GlobeNewswire, Inc., source