Business
JAKKS Pacific Announces Redemption of All Shares of Preferred Stock
Redemption Price for all Series A Senior Preferred Shares is $20 million cash and 571,295 Common Shares with a value of $15 million SANTA MONICA, Calif.,
About this update from Jakks Pacific, Inc.
[{"type":"text","content":"Redemption Price for all Series A Senior Preferred Shares is $20 million cash and 571,295 Common Shares with a value of $15 million\nSANTA MONICA, Calif., March 12, 2024 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK) today announced that the Company has agreed to redeem all of its shares of Series A Senior Preferred Stock for an aggregate price of $20,000,000 cash and 571,295 of its common shares, representing a value of $15,000,000. Management Commentary“This represents another significant milestone in achieving our goal of building a financially strong company, self-sustaining from its cash flows and well positioned for the future,\" said Stephen Berman, JAKKS Pacific Inc.’s Chairman and CEO. \"Despite significant industry volatility triggered by the COVID pandemic, we have maintained a singular focus to reenergize our business and improve our profitability. The success of our strategy gave us the ability to use our cash flow and strengthened stock position to conclude this transaction. We now refocus our energies on maximizing our 2024 opportunities and building out our 2025 product lines.\" The negotiated redemption removes the last debt-related security issued as part of the company’s 2019 restructuring. The price represents a discount of $4.6 million to the contractual liquidation premium and will eliminate $1.6 million in preferred dividends over the next 12 months. Post transaction, the company will have eliminated the Preferred Stock Derivative Liability ($29.947 million as of 12/31) and Preferred Stock Accrued Dividends ($5.992 million as of 12/31) from its Balance Sheet. The cash component of the transaction was funded with cash on hand. Post-transaction the company will have 10,798,353 outstanding common shares, a dilution of 5.6%. About JAKKS Pacific, Inc.JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include: AirTitans®, Ami Amis™, Disguise®, Fly Wheels®, JAKKS Wild Games™, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZone™, Xtreme Power Dozer®, and WeeeDo®, as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through our products and our charitable donations...