Kartoon Studios is backing a proposed $300 million special purpose acquisition company, Kartoon Studios Acquisition Corp. (KSAC), which has filed to go public. KSAC plans to raise money to pursue a business combination in the media and entertainment industry; it has not announced a target.
Kartoon Studios owns KSAC’s sponsor, which formed the SPAC and provided its initial capital. Kartoon Studios Chief Executive Andy Heyward, CFO Brian Parisi and COO Michael Jaffa will also lead KSAC.
Key details
- KSAC is proposing to sell 30 million units at $10 each, for $300 million in gross proceeds. It expects to give the underwriter an option to buy up to 15% more units to cover overallotments.
- Each unit will include one Class A ordinary share and one redeemable warrant. Each warrant would entitle its holder to buy one Class A ordinary share.
- The offering proceeds are expected to be placed in a trust account for the benefit of KSAC’s public shareholders.
- KSAC intends to list its units on the New York Stock Exchange under the symbol KACQ U.
- E.F. Hutton & Co. is the sole underwriter and book-running manager.
- The registration statement is preliminary and has not become effective, so the units cannot yet be sold. The filing does not identify a business-combination target or guarantee that KSAC will complete a transaction.
What changes
The proposed offering would create a publicly traded SPAC led by Kartoon Studios executives, with funds held in trust while it seeks a media or entertainment business to combine with. Kartoon Studios’ ownership of the sponsor and its executives’ leadership roles connect the parent company to KSAC, but the announcement does not say that the offering proceeds will go to Kartoon Studios.