SCHEDULE 13G/A: Armistice Capital Reduces Stake in Kartoon Studios Below 5% Threshold

Armistice Capital, LLC and Steven Boyd have filed an amendment to their Schedule 13G, reporting a beneficial ownership of 4.99% in Kartoon Studios, Inc., indicating a reduction below the 5% reporting threshold.

Summary

• Armistice Capital, LLC and Steven Boyd, collectively the "Reporting Persons," filed an Amendment No. 1 to Schedule 13G regarding their beneficial ownership in Kartoon Studios, Inc.
• As of March 31, 2025, the Reporting Persons beneficially own 2,294,582 shares of Kartoon Studios, Inc. Common Stock.
• This represents 4.99% of the outstanding Common Stock, which is below the 5% threshold typically requiring a Schedule 13G filing for new acquisitions.
• Armistice Capital, LLC acts as the investment manager for Armistice Capital Master Fund Ltd., the direct holder of the shares, and exercises shared voting and dispositive power over these securities.
• Steven Boyd, as the managing member of Armistice Capital, is also deemed to beneficially own these securities.
• The filing certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the reduction in beneficial ownership below the 5% threshold by a significant institutional investor, which can be interpreted as a lack of conviction or a strategic divestment, potentially signaling a negative outlook for the company's stock.

Positives

• The filing indicates a passive investment intent, as certified by the Reporting Persons, suggesting no immediate plans to influence or change control of Kartoon Studios, Inc.

Negatives

• The beneficial ownership percentage of 4.99% indicates that Armistice Capital and Steven Boyd have reduced their stake below the 5% threshold, which could be interpreted by the market as a decrease in confidence or a strategic divestment.

Risks

• A significant institutional investor reducing its stake below a key reporting threshold could signal potential concerns about the company's future performance or valuation, potentially leading to negative market sentiment.

Future Outlook

NA

Industry Context

This filing is a routine disclosure of a change in beneficial ownership by an institutional investor. Such changes can reflect portfolio rebalancing or a shift in investment thesis regarding the specific company or sector. For the entertainment and media industry, changes in institutional holdings can sometimes precede or follow significant company news or broader market trends, though this filing itself does not provide such context.

Stakeholder Impact

• Shareholders may interpret the reduction in stake by a significant institutional investor as a negative signal, potentially impacting investor confidence and the company's stock price.

Key Dates

Keywords

Kartoon Studios Inc., Armistice Capital LLC, Steven Boyd, Schedule 13G, Beneficial Ownership, Common Stock, Investment Management, Passive Investment, SEC Filing, Shareholding