JAKKS Pacific Announces Redemption of All Shares of

JAKKS Pacific Announces Redemption of All Shares of

SANTA MONICA, Calif., March 12, 2024 (GLOBE NEWSWIRE) — JAKKS Pacific, Inc. (NASDAQ: JAKK) today announced that the Company has agreed to redeem all of its shares of Series A Senior Preferred Stock for an aggregate price of $20,000,000 cash and 571,295 of its common shares, representing a value of $15,000,000.

Management Commentary
“This represents another significant milestone in achieving our goal of building a financially strong company, self-sustaining from its cash flows and well positioned for the future,” said Stephen Berman, JAKKS Pacific Inc.’s Chairman and CEO. “Despite significant industry volatility triggered by the COVID pandemic, we have maintained a singular focus to reenergize our business and improve our profitability. The success of our strategy gave us the ability to use our cash flow and strengthened stock position to conclude this transaction. We now refocus our energies on maximizing our 2024 opportunities and building out our 2025 product lines.”

The negotiated redemption removes the last debt-related security issued as part of the company’s 2019 restructuring. The price represents a discount of $4.6 million to the contractual liquidation premium and will eliminate $1.6 million in preferred dividends over the next 12 months. Post transaction, the company will have eliminated the Preferred Stock Derivative Liability ($29.947 million as of 12/31) and Preferred Stock Accrued Dividends ($5.992 million as of 12/31) from its Balance Sheet. The cash component of the transaction was funded with cash on hand. Post-transaction the company will have 10,798,353 outstanding common shares, a dilution of 5.6%.

About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include: AirTitans®, Ami Amis™, Disguise®, Fly Wheels®, JAKKS Wild Games™, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZone™, Xtreme Power Dozer®, and WeeeDo®, as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through our products and our charitable donations, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkspacific.toys), Twitter (@jakkstoys) and Facebook (@jakkspacific.toys).

Forward Looking Statements
This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific’s business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS Pacific’s products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, or that the Recapitalization transaction or any future transactions will result in future growth or success of JAKKS. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.

CONTACT:
JAKKS Pacific Investor Relations
(424) 268-9567
Lucas Natalini
[email protected]

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