Exhibit 5.1

WOODBURN AND WEDGE

Attorneys and Counselors At Law

Sierra Plaza

6100 Neil Road, Suite 500

Reno, Nevada 89511-1149

Telephone (775) 688-3000

Facsimile (775) 688-3088

 

Gregg P. Barnard

E-MAIL: gbarnard@woodburnandwedge.com

DIRECT DIAL: (775) 688-3025

 

September 4, 2020

 

 

Genius Brands International, Inc.

190 N. Cannon Drive, 4th Floor

Beverly Hills, California 90210

 

Ladies and Gentlemen:

 

We have acted as special Nevada counsel to Genius Brands International, Inc., a Nevada corporation (the “Company”), in connection with the Company’s filing on the date hereof of a Registration Statement on Form S-3 (the “Registration Statement”) with the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”).  The Registration Statement relates to the registration of a presently indeterminate aggregate amount of: (i) the Company’s common stock, par value $0.001 per share, as described in the Registration Statement (the “Common Stock”); (ii) the Company’s preferred stock, par value $0.001 per share (the “Preferred Stock”); (iii) debt securities as described in the Registration Statement (the “Debt Securities”), and (iv) warrants to purchase Debt Securities, Common Stock or Preferred Stock of the Company (the “Warrants”) (v) rights to purchase Common Stock, Preferred Stock, Debt Securities and/or Warrants of the Company (the “Rights”), and (vi) units consisting of a combination of two or more of the above securities (the “Units”), all of which may be issued from time to time in one offering or multiple offerings. all of which may be issued from time to time in one offering or multiple offerings.

 

In connection with rendering this opinion, we have examined or are familiar with the Articles of Incorporation of the Company, as amended to the date hereof, the Bylaws of the Company, as amended to the date hereof, the corporate proceedings with respect to the authorization of the Registration Statement, and such other certificates, instruments and documents as we have considered necessary or appropriate for purposes of this opinion. In such examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, conformity to the original documents of all documents submitted to us as copies and the authenticity of the originals of such latter documents.  As to any facts material to our opinion, we have, when relevant facts were not independently established, relied upon the Registration Statement and the aforesaid records, certificates and documents.

 

We assume that the Debt Securities will be issued under one or more indentures in the forms filed as exhibits to the registration statement, as amended or supplemented from time to time (each an “Indenture”), proposed to be entered into between the Company and one or more trustees chosen by the Company and qualified to act as such under the Trust Indenture Act of 1939, as amended (the “TIA”) (any such trustee, the “Indenture Trustee”). We further assume that the Warrants will be issued under one or more warrant agreements (each, a “Warrant Agreement”).

 

 

 

   

 

 

Genius Brands International, Inc.

September 4, 2020

Page 2

 

 

We are informed by the Company, and our opinions expressed below assume, that the authorized class or series, number of shares, voting power, designations, preferences, limitations, restrictions, relative rights and terms and conditions of the Preferred Stock, each Indenture and each supplemental thereto and Warrant Agreement will be filed either as an exhibit to an amendment to the Registration Statement to be filed after the date of this opinion or as an exhibit to a Current Report on Form 8-K to be filed after the Registration Statement has become effective and the particular terms, conditions and relative rights of any Preferred Stock, series of Debt Securities or Warrants will be set forth in a supplement to the prospectus forming a part of the Registration Statement.  We assume that the Company will have complied with its obligations under the Stockholder Rights Agreement, as defined in the Registration Statement, in connection with the issuance of any securities, including without limitation, provisions relative to certain preemptive rights described therein. We assume that the Company has sufficient authorized, unissued and unreserved shares of Common Stock and Preferred Stock (or will validly amend the Company’s Articles of Incorporation to authorize a sufficient number of shares of Common Stock and Preferred Stock prior to the issuance thereof) available for issuance as provided in the Registration Statement and any related amendment thereto or prospectus supplement.

 

Subject to the foregoing and the additional qualifications, limitations and assumptions set forth below, we are of the opinion that:

 

1.       The Company is a corporation duly organized and legally existing under the laws of the State of Nevada and is in good standing under said laws.

 

2.       The Common Stock and the Preferred Stock, as the case may be, will be validly issued, fully paid and nonassessable, when:

 

(a)       such Common Stock or Preferred Stock is specifically authorized for issuance and sale by action, resolutions or consent duly adopted by the Board of Directors and, to the extent required, the stockholders of the Company (“Equity Authorizing Resolutions”) approving the pricing, adequacy of consideration and the rights, preferences, privileges, restrictions, terms and conditions thereof;

 

(b)       in the case of Preferred Stock, the authorized class or series, number of shares, voting power, designations, preferences, limitations, restrictions, relative rights and terms and conditions of the Preferred Stock are set forth in a certificate of designation to be approved by the Company’s Board of Directors, or in an amendment to the Company’s Articles of Incorporation approved by the Company’s Board of Directors and stockholders, which, in each case, is appropriately filed in the office of the Nevada Secretary of State and has become effective prior to the issuance of any shares of such Preferred Stock;

 

(c)       the terms of the offer, issuance and sale of shares of Common Stock or Preferred Stock have been duly established in conformity with the Company’s Articles of Incorporation, Bylaws, the Equity Authorizing Resolutions, and as authorized by the approval of the stockholders of the Company, if such approval is so required;

 

(d)       compliance with the Securities Act and action of the Commission permitting the Registration Statement to become effective; and

 

(e)       the Company has received the consideration provided for in the applicable Equity Authorizing Resolutions.

 

3.       The Debt Securities will be validly issued and constitute the legal, valid and binding obligations of the Company, to the extent that Nevada law governs such issues, when:

 

(a)       the Debt Securities are specifically authorized for issuance by action, resolutions or consent duly adopted by the Board of Directors and, to the extent required, the stockholders of the Company (“Debt Authorizing Resolutions”) approving the pricing, terms and conditions of the issuance and sale of the new Debt Securities;

 

 

 

   

 

 

Genius Brands International, Inc.

September 4, 2020

Page 3

 

 

(b)       the Debt Securities are issued and delivered in accordance with (i) the provisions of an Indenture, including delivery of an officer’s certificate or supplemental indenture, the due authentication of the Debt Securities by the Trustee and the execution and delivery by the Company and the Trustee of all requisite documentation pursuant to the Indenture, (ii) the Company’s Articles of Incorporation and Bylaws, (iii) the Debt Authorizing Resolutions and (iv) the Registration Statement;

 

(c)       compliance with the Securities Act and the Trust Indenture Act of 1939, as amended, and action of the Commission permitting the Registration Statement to become effective; and

 

(d)       the Company has received the consideration provided for in the applicable Debt Authorizing Resolutions.

 

4. The Warrants will constitute valid and legally binding obligations of the Company, to the extent that Nevada law governs such issues, when:

 

(a)such Warrants are specifically authorized for issuance by action, resolutions or consent duly adopted by the Board of Directors and, to the extent required, the stockholders of the Company (“Warrant Authorizing Resolutions”) which include the pricing and terms upon which the Warrants are to be issued, their form and content and the consideration for which shares or other securities are to be issued in connection therewith;

 

(b)the respective documents and agreements relating to the creation, offering, issuance and sale of the Warrants (the “Warrant Documents”) have been duly authorized, executed and delivered and are enforceable in accordance with their terms;

 

(c)the terms of the offer, issuance and sale of such Warrants have been duly established in conformity with the applicable Warrant Documents and Warrant Authorizing Resolutions;

 

(d)the applicable Warrants have been duly executed and countersigned in accordance with the applicable Warrant Documents and created, offered, issued and sold as contemplated in the Registration Statement (and any amendment thereto, including any prospectus supplement), the applicable Warrant Authorizing Resolutions and the applicable Warrant Documents; and

 

(e)the Company has received the consideration for the Warrants provided for in the applicable Warrant Authorizing Resolutions.

 

5.       The Rights will constitute valid and legally binding obligations of the Company, to the extent that Nevada law governs such issues, when:

 

(a)such Rights are specifically authorized for issuance by action, resolutions or consent duly adopted by the Board of Directors and, to the extent required, the stockholders of the Company (“Rights Authorizing Resolutions”) which include the terms upon which the Rights are to be issued, their form and content and the consideration for which shares or other securities are to be issued in connection therewith;

 

(b)the respective documents and agreements relating to the creation, offering, issuance and sale of the Rights (the “Rights Documents”) have been duly authorized, executed and delivered and are enforceable in accordance with their terms;

 

(c)the terms of the offer, issuance and sale of such Rights have been duly established in conformity with the applicable Rights Documents and Rights Authorizing Resolutions;

 

 

 

   

 

 

Genius Brands International, Inc.

September 4, 2020

Page 4

 

 

(d)the applicable Rights have been duly executed and countersigned in accordance with the applicable Rights Documents and created, offered, issued and sold as contemplated in the Registration Statement (and any amendment thereto, including any prospectus supplement), the applicable Rights Authorizing Resolutions and the applicable Rights Documents; and

 

(e)the Company has received the consideration for the Right provided for in the applicable Rights Authorizing Resolutions.

 

6.       The Units will constitute valid and legally binding obligations of the Company, to the extent that Nevada law governs such issues, when:

 

(a)such Units are specifically authorized for issuance by action, resolutions or consent duly adopted by the Board of Directors and, to the extent required, the stockholders of the Company (“Units Authorizing Resolutions”) which include the pricing and terms upon which the Units are to be issued, their form and content and the consideration for which shares or other securities are to be issued in connection therewith;

 

(b)the respective documents and agreements relating to the creation, offering, issuance and sale of the Units (the “Units Documents”) have been duly authorized, executed and delivered and are enforceable in accordance with their terms;

 

(c)the terms of the offer, issuance and sale of such Units have been duly established in conformity with the applicable Units Documents and Units Authorizing Resolutions;

 

(f)the applicable Units have been duly executed and countersigned in accordance with the applicable Units Documents and created, offered, issued and sold as contemplated in the Registration Statement (and any amendment thereto, including any prospectus supplement), the applicable Units Authorizing Resolutions and the applicable Units Documents; and

 

(g)the Company has received the consideration for the Units provided for in the applicable Unit Authorizing Resolutions.

 

Our opinions set forth in paragraphs 2, 3, 4, 5 and 6 are subject to (a) the effect of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws now or hereafter in effect relating to or affecting the rights and remedies of creditors; (b) the effect of general principles of equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance or injunctive relief regardless of whether considered in a proceeding in equity or at law.

 

We offer no advice and express no opinion as to any provision contained in or otherwise made a part of the Common Stock, Preferred Stock, Debt Securities, Warrants, Rights or Units (i) providing for rights of indemnity or contribution, (ii) purporting to waive (or having the effect of waiving) any rights under the Constitution or laws of the United States of America or any state, (iii) providing for, or having the effect of, releasing any person prospectively from liability for its own wrongful or negligent acts, or breach of such documents and instruments, (iv) any provision for liquidated damages, default interest, late charges, monetary penalties, make-whole premiums or other economic remedies to the extent such provisions are deemed to constitute a penalty, (v) any provision requiring the payment of attorneys’ fees, where such payment is contrary to law or public policy, (vi) any provision permitting, upon acceleration of any Debt Security, collection of that portion of the stated principal amount thereof which might be determined to constitute unearned interest thereon, (vii) the creation, validity, attachment, perfection, or priority of any lien or security interest, (viii) provisions for exclusivity, election or cumulation of rights or remedies, (ix) grants of setoff rights, (x) provisions prohibiting, restricting, or requiring consent to assignment or transfer of any right or property, (xi) provisions purporting to make a guarantor primarily liable rather than as a surety, (xii) provisions purporting to waive modifications of any guaranteed obligation to the extent such modification constitutes a novation, (xiii) any provision to the extent it requires that a claim with respect to a security denominated in other than U.S. dollars (or judgment in respect of such a claim) be converted to U.S. dollars at a rate of exchange at a particular date, to the extent applicable law otherwise provides, (xiv) specifying the jurisdiction the laws of which shall be applicable thereto or specifying or limiting the jurisdictions before the courts of which cases relating to the securities may be brought, (xv) providing that the failure to exercise any right, remedy or option shall not operate as a waiver thereof, (xvi) to the effect that amendments, waivers and modifications may only be made in writing, (xvii) purporting to establish any evidentiary standard, (xviii) granting any power of attorney or proxies, (xix) purporting to waive or otherwise affect any right to receive notice, (xx) purporting to restrict competition, and (xxi) the severability, if invalid, of provisions to the foregoing effect. We offer no opinion as to any security into which any Debt Securities, Preferred Stock, Warrants, Rights or Units may be convertible.

 

 

 

   

 

 

Genius Brands International, Inc.

September 4, 2020

Page 5

 

 

With your consent, we have assumed that each of the Debt Securities and the supplemental indentures and officers’ certificates pursuant to the Indenture governing such Debt Securities and each Warrant and Warrant Document, Rights and Rights Document, Unit and Units Document (collectively, the “Documents”) (i) will be duly authorized, executed and delivered by the parties thereto, (ii) that each of the Documents will constitute legally valid and binding obligations of the parties thereto, other than the Company, enforceable against each of them in accordance with their respective terms, and (iii) that the status of each of the Documents as legally valid and binding obligations of the parties will not be affected by any (a) breaches of, or defaults under, agreements or instruments, (b) violations of statutes, rules, regulations or court or governmental orders, or (c) failures to obtain required consents, approvals or authorizations from or to make required registrations, declarations or filings with, governmental authorities.

 

The foregoing opinion is limited to the matters expressly set forth herein and no opinion may be implied or inferred beyond the matters expressly stated.  We disclaim any obligation to update this letter for events occurring after the date of this letter, or as a result of knowledge acquired by us after that date, including changes in any of the statutory or decisional law after the date of this letter.  We are members of the bar of the State of Nevada.  We express no opinion as to the effect and application of any United States federal law, rule or regulation or any federal or state securities laws of any state, including the State of Nevada.  We are not opining on, and assume no responsibility as to, the applicability to or the effect on any of the matters covered herein of the laws of any other jurisdiction, other than the laws of Nevada as presently in effect.

 

We hereby consent:

 

1.       To being named in the Registration Statement and in any amendments thereto as counsel for the Company;

 

2.       To the statements with reference to our firm made in the Registration Statement of the Company on Form S-3; and

 

3.       To the filing of this opinion as an exhibit to the Registration Statement.

 

In giving this consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder. The law firm of Vinson & Elkins LLP may rely on this opinion in connection with the opinion to be rendered by them in connection with the Registration Statement.

 

  Sincerely,
   
   
  WOODBURN AND WEDGE
   
   
  By:  /s/ Gregg P. Barnard
          Gregg P. Barnard