Kartoon Studios announces $4.5M offering

Kartoon Studios (TOON) announced that it has entered into a securities purchase agreement with a certain institutional investor to purchase (i) 7,894,736 shares of its common stock or pre-funded warrants in lieu thereof, (ii) Series A common warrants to purchase up to an aggregate of 7,894,736 shares of its common stock (the “Series A Warrants”) and (iii) Series B common warrants to purchase up to an aggregate of 7,894,736 shares of its common stock (the “Series B Warrants”, collectively with the Series A Warrants, the “Common Warrants”) at a purchase price of $0.57 per share and associated Common Warrants in a best efforts offering. Each share of common stock is being offered together with one Series A Warrant and one Series B Warrant, each to purchase one share of common stock. The Series A Warrants will have an exercise price of $0.57 per share, are exercisable upon stockholder approval, and will expire five years following the date of stockholder approval. The Series B Warrants will have an exercise price of $0.57 per share, are exercisable upon stockholder approval, and will expire eighteen months following the date of stockholder approval. Roth Capital Partners is acting as placement agent of the offering.