Kartoon Studios settles $1.46M in overdue debts by issuing 2.55M shares to creditor

Filed April 24, 2026 · Period ending April 20, 2026 · ~1 min read

Key Changes

• high

  Company issued 2,553,047 shares to Continuation Capital to settle $1.46 million in past due obligations and accounts payable, converting debt at 1.75 shares per dollar—diluting existing shareholders by approximately 2-3% but eliminating overdue liabilities.

  Item 1.01, 3.02 verify on EDGAR →
• medium

  Settlement required Florida Circuit Court approval (granted April 13) and NYSE American approval for share issuance (granted April 20), suggesting the debts may have been subject to formal legal proceedings or dispute resolution.

  Item 1.01 verify on EDGAR →
• medium

  Shares issued under Section 3(a)(10) exemption from SEC registration, a provision typically used for court-approved settlements, meaning these shares are freely tradable without typical restricted stock holding periods.

  Item 3.02 verify on EDGAR →