Genius Brands International Inc. (NASDAQ: GNUS), the company which until recently was struggling to keep itself listed on Nasdaq, recently gained 2500% since May.
This rush has come due to a string of operational advancements and investments announced by the company on May 28. The company continuously gained in the market of 52 weeks high.
On May 18, the company announced that it has entered into a securities purchase agreement with certain long-standing investors who provided for the purchase and sale of 7.5 million shares of its common stock at a purchase price of $1.20 per share, priced “at the market” under Nasdaq rules based on the average closing sale price for the previous five trading days, in a registered direct offering, resulting in total gross proceeds of $9.0 million.
The Special Equities Group, LLC, a division of Bradley Woods & Co. LTD, acted as the placement agent for this transaction. This provided support to the share in the market and gave hope to the investors.
The share of GNUS shot up 97.3% to a $7.93, the highest close since June 2015. Trading volume floated to 397.5 million shares, which was more than double the previous one-day record of 185.2 million shares traded reached on Tuesday, and this made the stock the most actively traded on major U.S. stock exchanges.
The company intended to use its net proceeds to flourish its newly-announced digital network for children, Kartoon Channel, which will launch on June 15 and be available in about 100 million TV households around the U.S. and approximately 200 million mobile devices. This network will reach around 100 million U.S. television households and over 200 million mobile devices. It will also use the net proceeds to fund the production of additional episodes of its series ‘Rainbow Rangers’, and for the repayment of certain outstanding debt as well as use for working capital.
The stock’s callup comes in the face of a growing number of skeptics, as contrarian bearish bets keep increasing to record levels despite more folds in costs, which could provide the backdrop for further buying.
CEO Andy Heyward described the channel as a “turning point” in a letter to shareholders, and dubbed it on NETFLIX for kids.
The stock has reach 338.1% amid a 4-day win streak and has skyrocketed nearly 26-fold, up 2,440.0%, since it closed at 315 a month ago. That has boosted the company market capitalization to $763.9 million from about $9.2 million as of May 1.
The Nasdaq Composite + 0.77% has gained 12.5% over the past month and the S&P 500 index SPX, +1.36% has advanced 10.3%.
The stock has climbed 338.1% amid a 4-day win streak, and has enlarge nearly 26-fold, up to 2,500% as shown in graph the high in price from May 28.
SOME OTHER KEY HIGHLIGHTS:
- The company holds EPS of -0.99, and P/E Ratio -0.97.
- EBITDA of the company is -5.03.
- ROE is -202.8%, Net Margin is -245.13% and Gross Margin23%
- Debt-To-Equity ratio is 52.28%.
- The company holds market capitalisation of 60.M.
- Return on Assets is -40.15 and hold Profit Margin of -194.3%.
- On May 18, Genius Brads release its first quarter earnings, which included a net loss of $5.8 million for the quarter.
- On May 18, the company announced the sale of 7.5 million shares at $1.20 per share to raise $9.0 million.
- On May 28, the company released it raised $30 million by selling 20 million shares at $1.50 per share.
- Finally, on May 29, the company said that it had regained compliance with the Nasdaq and would not need to delist its shares from the exchange.
Investors clearly like the news and this bring the high in the share price of the company which is 52 weeks high.
Genius Brands shares closed 97.3% higher at $7.93 on June 03. The shares traded another 9.7% higher in the after-hours session at $8.70.
Genius Brands International (GBI) is an entertainment company founded by Andy Heyward. The company was formed by the merger of Genius Brands International and A Squared Entertainment.
- The company has over 65 merchandising licensees in the global market with over 500 product SKUs.
- The company has over 20 licensees for animated content around 90 countries.
- It has over 450 SKUs anticipated to launch over the next 12 months with top-tier manufacturers such as Bentex Group for apparel; Macmillan for publishing, etc.
- The company produces in partnership with Alibaba, launching on Amazon Prime in the US and Alibaba’s Youku kids in China by 2021.
- Global consumer products program expected to launch in 2021.
- Stan Lee will appear as an animated cameo in each episode, as he did during his life in Marvel Feature Films which were based on his characters.