Grom Social Enterprises, Inc. Announces Full Exercise of Over-Allotment Option in Public Offering
July 15 2021 - 05:45PM
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
that the underwriters of its previously completed public offering
have exercised the remainder of their over-allotment option to
purchase an additional 361,445 shares. The 45-day over-allotment
option was granted in connection with the Company’s previously
announced underwritten public offering of 2,409,639 units at a
public offering price of $4.15 per unit. After giving effect
to the full exercise of the over-allotment option, the total number
of units sold by the Company in the offering increased to 2,711,084
units, resulting in aggregate gross proceeds of approximately $11.5
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.
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 on June
21, 2021. 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 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 Inc.’s 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, 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 SEC, 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 service lines, noting there is no
assurance that we will generate enough revenues to offset those
costs in both the near and long-term. 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 press release are reasonable, we cannot assure
shareholders 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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