Tokyopop Sets September 24 Deadline for Public Share Offering

Tokyopop confirmed that its offer allowing members of the public to buy company shares will close on Thursday, September 24.

Founder Stu Levy said more than 300 people have bought shares and become part owners of Tokyopop. The company had 14 owners before the offering.

Announced April 11, the offer prices shares at US$5.00 each and requires a minimum investment of US$1,000. Buyers receive Class B Common Stock without voting rights.

The offering includes these bonus-share terms and fees:

• Investments of US$2,500 or more qualify for bonus shares.
• Investments above US$12,500 receive 7% bonus shares.
• Investments above US$2,500 made before May 6 received an additional 5% in bonus shares.
• Those made between May 7 and June 4 received an additional 3%.
• Investors pay a 3.0% processing fee.

Tokyopop can raise a maximum of US$1,234,995.75. If investment commitments fail to reach US$10,001.30, it will sell no shares, cancel all commitments and return the funds.

Alongside its fundraising goal of about US$1.2 million, Tokyopop aims to reach up to US$50 million in annual revenue by 2030. Its current annual revenue is approximately US$15 million.

As of February 28, the company held approximately US$1,084,720 in total cash and cash equivalents.

An independent accountants’ review reported operating losses and negative cash flows from operating activities. The accountants also raised substantial doubt about Tokyopop’s ability to continue operating.

Tokyopop identifies four areas for future expansion:

• Its publishing and intellectual property pipeline.
• Anime production partnerships.
• Merchandising and direct-to-consumer (D2C) channels.
• Live experiences and exhibitions.

The company says investment proceeds will fund:

• Intermediary fees.
• Core publishing.
• Anime production.
• Merchandising.
• Live experiences.

Every shareholder automatically joins the Tokyopop Owners Club (TOC). Membership provides:

• A personalized digital stock certificate.
• A membership card.
• One free Tokyopop product each year.
• Early access periods for selected new releases.
• Editions available only to owners.
• Custom releases.
• Behind-the-scenes access to Tokyopop’s team.
• An invitation to the Annual Virtual Owners Town Hall with company leadership.

Tokyopop’s FAQ states that its common shares are not publicly traded and are difficult to trade or sell. Transfers are prohibited for one year after issuance.

Investors would typically seek a return through another company acquiring Tokyopop or through Tokyopop conducting an initial public offering.

The newly established limited liability company Tokyopop Investor Holdings is the shares’ co-issuer. It acts solely as a conduit for investment in Tokyopop, with no separate business purpose.

Buyers invest directly in Tokyopop Investor Holdings rather than Tokyopop itself. The company identifies these investment risks:

• Loss of the entire investment.
• No protective provisions.
• No voting rights.
• No inspection or information rights.
• No guaranteed return.

Stu Levy, Tokyopop’s CEO, director and founder, holds a majority of the company’s voting shares together with other insiders and directors.

Levy also revealed that Tokyopop had planned to go public in Japan 20 years ago. He attributed the closure of its U.S. publishing operation to factors including bookstore retailer Borders’ shutdown, manga piracy and competition in the manga market.

He said the company’s recovery and expansion in recent years prompted him to revisit the idea of opening ownership to fans.

Tokyopop reported 31 employees as of April 8, including 20 at its German subsidiary. It also works with independent contractors and advisors.

In May 2024, Tokyopop announced a multiyear sales and distribution agreement with Penguin Random House Publisher Services (PRHPS), a Penguin Random House division.

Beginning January 1, 2025, the agreement covers Tokyopop’s entire frontlist and backlist across every sales channel worldwide.

Tokyopop named Lena Atanassova editor in chief in September 2024.

Levy established Tokyopop in 1997 under its original name, Mixx. The publisher initially serialized manga in its Mixxzine magazine.

In 2002, Tokyopop pioneered publishing all its manga titles “unflipped,” preserving their original right-to-left reading direction.

Between 2003 and 2005, it launched divisions in the United Kingdom and Germany, along with Blu, an imprint specializing in boys-love manga.

Tokyopop closed its North American publishing operations in May 2011. It continued working with other companies to release manga and world manga afterward.

At its 2015 Anime Expo panel, Tokyopop announced plans to resume manga publishing in 2016. It announced its first new manga licenses in 2018.

An update corrected typographical errors and thanked enurtsol.