Grom Social Enterprises, Inc. Announces Closing of $10.0 Million Public Offering
June 21 2021 - 4:11PM
via NewMediaWire -- Grom Social Enterprises, Inc. (NASDAQ: GROM)
(“Grom”, the “Company”), a social media platform and original
content provider for children under the age of 13, today announced
the closing of its previously announced underwritten public
offering of 2,409,639 units at a public offering price of $4.15 per
unit for aggregate gross proceeds of approximately $10.0 million
prior to deducting underwriting discounts, commissions, and other
offering expenses. Each unit issued in the offering was comprised
of one share of common stock and one warrant to purchase one share
of common stock. Each warrant is exercisable for one share of
common stock at an exercise price of $4.565 per share and will
expire five years from issuance. In addition, the Company granted
the underwriters a 45-day option to purchase up to an additional
361,445 shares of common stock and/or warrants to purchase up to
361,445 shares of common stock at the public offering price less
the underwriting discounts and commissions. The common stock and
warrants began trading on the Nasdaq on June 17, 2021 under the
symbols “GROM” and “GROMW”, respectively.
EF Hutton, division of Benchmark Investments,
LLC, acted as sole book-running manager and Revere Securities LLC
acted as co-manager for the offering.
The Securities and Exchange Commission ("SEC")
declared effective a registration statement on Form S-1 (File No.
333-253154) relating to these securities on June 16, 2021. A final
prospectus relating to this offering was filed with the SEC. The
offering was made only by means of a prospectus, copies of which
may be obtained, when available, from: EF Hutton, division of
Benchmark Investments LLC, 590 Madison Avenue, 39th Floor, New
York, NY 10022, Attention: Syndicate Department, or via email at
syndicategroup@efhuttongroup.com or telephone at (212)
404-7002.
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. 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 several 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 about being a
good digital citizen. The Company owns and operates Top Draw
Animation, Inc., which produces award-winning animation content for
some of the largest international media companies in the world. The
Company also includes Grom Educational Services, which has provided
web filtering services for K-12 schools, government and private
business. For more information, please visit gromsocial.com.
Forward-Looking Statements
This press release may contain forward-looking
statements about Grom Social Enterprises activities that are based
on current expectations, forecasts, and assumptions that involve
risks and uncertainties that could cause actual outcomes and
results to differ materially from those anticipated or expected,
including statements related to the amount and timing of expected
revenues and any payment of dividends on our common stock,
statements related to our financial performance, expected income,
distributions, and future growth for upcoming quarterly and annual
periods, and other risks set forth in the Company's filings with
the U.S. Securities and Exchange Commission, including our Annual
Report on Form 10-K and our Quarterly Reports on Form 10-Q. Actual
results and the timing of certain events could differ materially
from those projected in or contemplated by the forward-looking
statements due to a number of factors. Among other matters, the
Company may not be able to sustain growth or achieve profitability
based upon many factors including, but not limited to general stock
market conditions. We have incurred and will continue to incur
significant expenses in the expansion of our existing and new
service lines, noting there is no assurance that we will generate
enough revenues to offset those costs in both the near and
long-term. Additional service offerings may expose us to additional
legal and regulatory costs and unknown exposure(s) based upon the
various geopolitical locations where we will be providing services,
the impact of which cannot be predicted at this time. All
forward-looking statements speak only as of the date of this press
release. We undertake no obligation to update any forward-looking
statements or other information contained herein. Stockholders and
potential investors should not place undue reliance on these
forward-looking statements. Although we believe that our plans,
intentions, and expectations reflected in or suggested by the
forward-looking statements in this report are reasonable, we cannot
assure stockholders and potential investors that these plans,
intentions or expectations will be achieved. Except to the extent
required by law, we undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, a change in events, conditions, circumstances or
assumptions underlying such statements, or otherwise.
Contact:INVESTOR RELATIONS(561)
287-5776
Investor Relations
Contact:TraDigital IRJohn
McNamara+1-917-658-2602john@tradigitalir.com
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