Grom Social Enterprises, Inc. Closes $4.4 Million Private Placement
September 15 2021 - 6:30PM
via NewMediaWire -- Grom Social Enterprises, Inc. (NASDAQ:GROM)
("Grom" or the "Company"), the emerging social media and family
entertainment company, today announced the closing of a $4.4
million private placement. The Investment is in the form of a 10%
Original Issue Discount convertible note in the principal amount of
$4,400,000 that has an 18-month maturity and a fixed conversion
price of $4.20 per share of common stock, subject to adjustment,
and warrants to purchase 813,278 shares of common stock with an
exercise price of $4.20 per share, subject to adjustment. GROM
is required to make monthly payments in either cash or shares,
commencing 75 days after closing. GROM has agreed to file a
registration statement registering for resale the shares of common
stock issuable upon conversion of the note and upon exercise of the
warrants on or before October 19, 2021. The warrants are not
exercisable until the Company’s shareholders approve the issuance
of the warrants and will be exercisable for five years after such
approval. The Company intends to use the net proceeds from the
private placement for working capital, joint ventures, possible
acquisitions, partnerships, and general corporate purposes.
EF Hutton, division of Benchmark Investments,
LLC, acted as exclusive placement agent for the offering.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy any of the
securities described herein, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
About Grom Social Enterprises, Inc.
Grom Social Enterprises, Inc. (NASDAQ: GROM) is
a leading social media platform and original content provider of
entertainment for children under 13 years of age, providing safe
and secure digital environments for kids that can be monitored by
their parents or guardians. The Company has four operating
subsidiaries, including Grom Social, which delivers its content
through mobile and desktop environments (web portal and apps) that
entertain children, let them interact with friends, access relevant
news, and play proprietary games, while teaching them the
importance of being a good digital citizen. The Company recently
acquired Curiosity Ink Media, a company dedicated to cultivating
family-friendly entertainment and original intellectual property
(IP) development through films, TV series, and consumer products.
The Company owns and operates Top Draw Animation, Inc., a leading
supplier of premium animation production services which
produces award-winning animation for some of the largest
international media companies in the world. Grom Social
Enterprises also includes Grom Educational Services, which has
provided web filtering solutions for K-12 schools, government, and
private business. For more information, please visit
gromsocial.com.
Forward-Looking Statements
This press release contains statements that
constitute "forward-looking statements," including with respect to
the Company's private placement. No assurance can be given that the
offering will be completed on the terms described, or at all.
Forward-looking statements are subject to numerous conditions, many
of which are beyond the control of the Company, including those set
forth in the Risk Factors section of the Company's
registration statement and preliminary prospectus for the
offering filed with the SEC. Copies are available on the SEC's
website, www.sec.gov. The Company undertakes no obligation to
update these statements for revisions or changes after the date of
this release, except as required by law.
Investor Relations Contact:
TraDigital IR John
McNamara+1-917-658-2602john@tradigitalir.com
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