Coolabi has today confirmed that it has received an approach regarding a takeover of the firm.
The company was reacting to movement in its share price - it leapt 18 per cent to trade at 8.88 pence.
Coolabi said that discussions were at an early stage and "there can be no certainty that these discussions could lead to an offer for the company."
Coolabi is currently building up the licensing programme for pre-school show Poppy Cat. Alligator Books, Trademark Collections and VMC Accessories have recently signed up.