Why Genius Brands Stock Is Crashing Hard Today
Shares of Genius Brands International (NASDAQ: GNUS) are falling on Thursday. As of 12:38 p.m. EDT today, the stock is down 19.6%, ending a run that's seen the kids' entertainment company gain almost 2,000% in value, including a massive single-day surge of 89% on Wednesday.
The sharp reversal is a result of a Securities and Exchange Commission filing disclosing that a group of investors registered to sell as many as 60.1 million shares of Genius Brands stock.
In short, the sellers are looking to cash in on their investments in the company, largely over the past year, that have kept it afloat. A large portion of the shares registered to be sold, 29 million, will come from warrants that the investors can convert to common shares at an exercise price of only $0.21 per share.
Source Fool.com
