BEVERLY HILLS, Calif., April 23, 2024 (GLOBE NEWSWIRE) -- Kartoon Studios Inc. (NYSE:TOON) ("Kartoon Studios" or the "Company"), a global end-to-end creator, producer, distributor, marketer, and licensor of entertainment brands, today announced the consummation of the initial closing of a registered direct offering (the "Offering") to a certain institutional investor (the "Investor") pursuant to a securities purchase agreement, dated April 18, 2024, of up to 7,000,000 shares of its common stock, par value $0.001 per share (the "Common Stock"), and/or pre-funded warrants to purchase shares of Common Stock (the "Pre-funded Warrants"), of which 3,900,000 shares and 100,000 Pre-Funded Warrants were issued and sold on April 23, 2024. An additional 3,000,000 shares and/or Pre-Funded Warrants may be issued and sold to the Investor at the sole option of the Investor, at $1.00 per share of Common Stock and $0.99 per Pre-funded Warrant, in up to three additional closings of at least $1,000,000 in gross proceeds each, and to occur no later than one hundred eighty (180) days following April 18, 2024. The Company received aggregate gross proceeds of $4,000,000 from the initial closing, prior to deducting placement agent fees and other offering expenses and may receive up to an additional $3 million in gross proceeds pursuant to the subsequent closings, prior to deducting placement agent fees and other offering expenses. EF Hutton LLC acted as the sole placement agent for the Offering. The securities were 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 was made only by means of a prospectus supplement and accompanying prospectus. A prospectus supplement describing the terms of the public offering was filed with the SEC on April 19, 2024, and formed ...