Genius Brands (NASDAQ:GNUS) is in the news Thursday after plans for a massive sale of its shares was revealed in a filing with the U.S. Securities and Exchange Commission (SEC).
Genius Brands notes that shareholders are responsible for the sales of GNUS stock. As such, the company won’t be benefitting from these sales. The total amount of shares in the registration comes to 60.1 million.
The SEC filing reveals that roughly 31.1 million of the shares are common stock from warrants. The other 29 million shares are common stock issuable from warrants at an exercise price of just 21 cents each.
So, why exactly are shareholders only now making such major moves with the stock? They are likely looking to cash in on their investment after GNUS stock saw massive gains over the last month. The stock was trading at 33 cents a month ago but last closed out at $7.93 per share.
At this point, investors may have questions about Genius Brands. Starting off, its a media company that specifically creates content for children. That includes plans to launch a new streaming service. One of the company’s more popular shows is Rainbow Rangers.
Andy Heward, CEO of Genius Brands, described the company as such to MarketWatch.
“Genius Brands is in the simplest business. We make animated cartoon programs from children, which we distribute worldwide, and license the characters on consumer products manufacturers for royalty income.”
GNUS stock was down 8.9% as of Thursday afternoon. However, the stock is up 2,634.5% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
