Manga publisher Tokyopop has opened a public offering for its Class B Common Stock, seeking to raise up to approximately $1.2 million. The shares are priced at $5.00 each, with a minimum investment of $1,000. Investors making larger contributions, starting at $2,500, will receive bonus shares, with additional incentives offered for early investments before June 4.
Proceeds from the offering are earmarked for expanding Tokyopop's publishing and IP pipeline, developing anime production partnerships, growing its merchandising and direct-to-consumer channels, and creating live events. The company, which currently generates around $15 million in annual revenue, aims to reach $50 million in annual revenue by 2030. As of February 28, Tokyopop reported approximately $1.08 million in cash and cash equivalents.
All shareholders will automatically become members of the Tokyopop Owners Club (TOC), receiving benefits such as a digital stock certificate, annual complimentary products, early access to releases, owner-exclusive editions, and behind-the-scenes content. However, the Class B Common Stock does not carry voting rights and is not publicly traded, meaning it cannot be easily bought or sold and has a mandatory one-year holding period. Potential returns on investment are contingent on a future acquisition of Tokyopop or an initial public offering by the company.
The offering is being co-issued by a newly formed entity, Tokyopop Investor Holdings LLC, which acts as a conduit for investments into Tokyopop. The company's FAQ highlights significant risks, including the potential loss of the entire investment, lack of protective provisions, and no guaranteed return. Tokyopop founder Stu Levy and other insiders hold the majority of the company's voting shares.
