Monitor for any Schedule 13D filings that reveal a shareholder approaching or exceeding the 10% threshold, which would trigger the poison pill and potentially unlock value through dilution or a negotiated settlement. The limited one-year duration reduces the entrenchment risk, but the plan signals management's desire to control any change-of-control process.
Price Chart
Executive Summary
Kartoon Studios adopted a limited-duration stockholder rights plan (poison pill) with a 10% beneficial ownership trigger, distributing one Right per outstanding common share. The plan expires on June 29, 2027, and was not adopted in response to any specific takeover bid. This defensive measure signals board concern about potential accumulation but is limited in duration, reducing the likelihood of a near-term hostile premium offer.
Key Facts
- Board unanimously adopted a Preferred Stock Rights Agreement on July 1, 2026
- One Right distributed per outstanding common share; record date July 13, 2026
- Rights become exercisable if any person acquires 10% or more of common stock without board approval
- Initial purchase price of $3.75 per one one-thousandth of a Series D Participating Preferred Share
- Rights expire at close of business on June 29, 2027 (Final Expiration Time)
- Board may redeem Rights at $0.001 per Right at any time before Distribution Time
- Plan is not in response to any specific takeover bid or proposal
- Series D Preferred Stock authorized at 300,000 shares, non-redeemable, with dividend/liquidation/voting rights tied to common stock
Financial Impact
No immediate financial impact; the plan creates significant potential dilution (flip-in trigger) if a 10% holder appears, but no such event has occurred
Risk Factors
- Poison pill may deter potential acquirers, limiting takeover premium opportunities for shareholders
- If a 10% holder appears, massive dilution could occur unless the board redeems or negotiates
- Limited duration means the plan may need to be renewed or allowed to expire within a year
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001683168-26-005235 |
| Document: toon_8k.htm | 0001683168-26-005235 |
| Document: toon_ex0301.htm | 0001683168-26-005235 |
| Document: toon_ex9901.htm | 0001683168-26-005235 |
| Document: 0001683168-26-005235-index-headers.html | 0001683168-26-005235 |
| Document: 0001683168-26-005235-index.html | 0001683168-26-005235 |
| Document: 0001683168-26-005235.txt | 0001683168-26-005235 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 8-K | $0.5063 | awaiting T+1 | — | $0.5103 (+0.79%) |
Oct 22, 2026 5d ago | 3 | $0.5020 $0.5170 | ▲ +2.99% | ▲ +3.51% | $0.5103 (+1.65%) |
Oct 20, 2026 7d ago | 8-K | $0.5168 $0.5093 | ▼ −1.45% | ▼ −1.98% | $0.5103 (−1.26%) |
Aug 14, 2026 10w ago | 8-K | $0.6319 $0.6026 | ▲ +4.64% | ▲ +4.16% | $0.5103 (+19.24%) |
Aug 12, 2026 10w ago | 8-K | $0.6538 $0.6456 | ▼ −1.25% | ▼ −1.95% | $0.5103 (−21.95%) |
Jul 17, 2026 14w ago | 8-K | $0.6191 $0.6120 | ▼ −1.15% | ▼ −0.99% | $0.5103 (−17.57%) |
Jul 2, 2026 16w ago | 8-K | $0.6700 $0.6870 | ▲ +2.54% | ▲ +1.66% | $0.5103 (−23.84%) |
Jul 2, 2026 16w ago | Press Release | $0.6700 $0.6870 | ▲ +2.54% | ▲ +1.66% | $0.5103 (−23.84%) |
Jun 16, 2026 19w ago | 8-K | $1.25 $1.07 | ▼ −14.40% | ▼ −13.15% | $0.5103 (−59.18%) |
Jun 8, 2026 20w ago | 8-K | $0.7478 $0.8702 | ▲ +16.37% | ▲ +17.94% | $0.5103 (−31.76%) |
US Market Status
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