Kartoon Studios Inc. (NYSE American: TOON) announced on October 20, 2025 that it has entered into a securities purchase agreement with a single institutional investor for the sale of approximately $7.3 million of common stock. The transaction includes the issuance of 3,000,000 shares of common stock and pre‑funded warrants to purchase up to 6,903,049 shares, as well as warrants to purchase up to 9,903,049 shares in a concurrent private placement. The combined purchase price is $0.738 per share and accompanying warrant, and $0.737 per pre‑funded warrant and accompanying warrant.
The offering is expected to close on or about October 22, 2025, subject to customary closing conditions and NYSE American approval. The gross proceeds from the equity sale are projected to be $7.3 million before placement agent fees and other offering expenses. If the warrants are exercised, the company could receive an additional $7.3 million in gross proceeds.
The company will use the net proceeds for working capital and general corporate purposes, specifically to fuel the global launch and marketing of the upcoming Hundred Acre Wood’s Winnie & Friends, expand the Stan Lee Universe, roll out the Bitcoin Brigade, and support ongoing growth and content acquisition for its Kartoon Channel! streaming service. The investor has agreed not to sell any of the company’s securities until December 31, 2025, at a sale price less than $1.00.
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