Why Genius Brands Shares Crashed Again Today
Shares of Genius Brands International (NASDAQ: GNUS) fell as much as 32.8% on Thursday morning as the company prepared a dilutive stock offering. The stock recovered some of the lost ground later in the day based on buyout rumors involving Walt Disney (NYSE: DIS) as a potential buyer, but the company behind kid-friendly shows such as Stan Lee's Superhero Kindergarten and Baby Genius still traded 20% lower at 3:20 p.m., EDT.
Where will the coin land? Nobody knows. Image source: Getty Images.
Genius Brands is planning to sell a total of 60.1 million shares to a predetermined group of investors. Technically, the investors are converting their stock warrants into ordinary shares at exercise prices as low as $0.21 per share. The company will receive a maximum of $6.1 million (minus warrant registration expenses) from this maneuver, based on the exercise prices of the warrants. The company currently has 96 million shares outstanding, of which 40.5 million shares are trading on the public stock market.
Source Fool.com
