Genius Brands Taps AI For New Series Following Reverse Stock Split: What's Going On?

Genius Brands International Inc GNUS shares are trading lower Monday. The company announced a 1-for-10 reverse stock split last week that went into effect today.

What Happened: On Friday, Genius Brands announced a reverse stock split to maintain compliance with the Nasdaq's $1 minimum bid price continued listing requirement. 

As a result of the reverse stock split, shareholders were given one share of common stock for every 10 pre-split shares of common stock owned, resulting in each shareholder's pro rata ownership remaining the same.

"We are executing on our plan around timeless, safe, and quality entertainment for children, as we grow rapidly, now evidenced by our most recent earnings announcements, continuing increase in revenues, and synergies as we digest our strategic acquisitions and investments in WOW, Ameba, and YFE. As a result, maintaining our listing on Nasdaq is of utmost importance given the anticipated milestones and visibility a Nasdaq listing provides," said Andy Heyward, CEO of Genius Brands.

What Else: Genius Brands also announced the launch of its first AI-generated children's series, "Kidaverse Fast Facts," which utilizes Microsoft Corp MSFT-backed OpenAI's ChatGPT, among other AI technologies. 

The series will include new and exclusive shorts featuring fun and interesting lessons and facts about science, history, music, literature and more. It's expected to premiere in March. 

Check This Out: Bill Gates Says ChatGPT As Big An Invention As The Internet: 'Will Make Many Office Jobs…'

GNUS Price Action: Genius Brands has a 52-week high of $12.40 and a 52-week low of $3.31. The stock is down more than 40% since the reverse split was announced last week. 

Genius Brands shares are down 13.8% at $3.83 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Genius Brands.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsPenny StocksStock SplitMoversAndy HeywardChatGPT
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!