Kartoon Studios Inc. Announces Pricing of up to $7 Million Registered Direct Offering of Common Stock

BEVERLY HILLS, Calif., April 18, 2024 (GLOBE NEWSWIRE) -- Kartoon Studios Inc. (NYSE American: TOON) (“Kartoon Studios” or the “Company”), a global end-to-end creator, producer, distributor, marketer, and licensor of entertainment brands, today announced the pricing of a registered direct offering of up to 7,000,000 shares of its common stock and/or pre-funded warrants to purchase shares of common stock (the “Pre-funded Warrants”) (the “offering”) to certain institutional investors at $1.00 per share of common stock and $0.99 per Pre-funded Warrant, for aggregate gross proceeds of up to approximately $7,000,000, prior to deducting placement agent fees and other offering expenses, pursuant to a securities purchase agreement (the “SPA”).

The first tranche of the offering consists of 4,000,000 shares of common stock and/or Pre-funded Warrants for aggregate gross proceeds to the Company of approximately $4,000,000, and is expected to close on or about Monday, April 22, 2024, subject to the satisfaction of customary closing conditions. Up to 180 days following the date of the SPA, the investors have the option to purchase up to an additional 3,000,000 shares of common stock and/or Pre-funded Warrants, whereby the Company will receive aggregate gross proceeds of up to approximately $3,000,000, prior to deducting placement agent fees and other offering expenses.

EF Hutton LLC is acting as the sole placement agent for the offering.

The securities are being offered by the Company pursuant to a "shelf" registration statement on Form S-3 (File No. 333-276259), which was filed with the U.S. Securities and Exchange Commission (“SEC”) on December 22, 2023, and declared effective by the SEC on January 5, 2024, and the accompanying prospectus contained therein (the “Registration Statement”).

The offering is being made only by means of a prospectus supplement and accompanying prospectus. A prospectus supplement describing the terms of the public offering will be filed with the SEC and will form a part of the effective Registration Statement. Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, on the SEC’s website at http://www.sec.gov or by contacting EF Hutton LLC, Attention: Syndicate Department, 590 Madison Avenue, 39th Floor, New York, NY 10022, by email at [e-mail], or by telephone at [phone].