Boca Raton, FL - (NewMediaWire) - October 21, 2021 - Grom Social Enterprises, Inc. (NASDAQ:GROM)("Grom" or the "Company"), the emerging social media and family entertainment company, today announcedan increase to the total amount of its previously announced private placement ofconvertible notes and warrants. On September14, 2021, L1 Capital Global Opportunities Master Fund (“L1 Capital”) purchasedfrom the Company (i) a convertible note in the principal amount of $4,400,000, witha 10% original issuance discount, an 18-month maturity, and a conversion price of$4.20 per share, subject to adjustment, and (ii) warrants to purchase 813,278 sharesof common stock, with an exercise price of $4.20 per share, subject to adjustment.The transaction documents for the private placement anticipated a second investmentby L1 Capital in the amount of $1,500,000, subject to certain conditions. As ofOctober 20, 2021, the amount for the proposed second investment has been increasedto up to $6,000,000 for total gross proceeds to the Company of $10,400,000, subjectto certain conditions being met. The secondclosing is subject to the Company obtaining shareholder approval, as required byNasdaq’s rules, among other things. The Companyintends to use the net proceeds from the private placement for potential joint ventures,acquisitionsor partnerships, and for working capital and generalcorporate purposes.
EF Hutton, division of Benchmark Investments, LLC, acted as exclusiveplacement agent for the private placement.
Thispress release shall not constitute an offer to sell or the solicitation of an offerto buy any of the securities described herein, nor shall there be any sale of thesesecurities in any state or jurisdiction in which such offer, solicitation or salewould be unlawful prior to registration or qualification under the securities lawsof 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 entertainmentfor children under 13 years of age, providing safe and secure digital environmentsfor kids that can be monitored by their parents or guardians. The Company has fouroperating subsidiaries, including Grom Social, which delivers its content throughmobile and desktop environments (web portal and apps) that entertain children, letthem interact with friends, access relevant news, and play proprietary games, whileteaching them the importance of being a good digital citizen. The Company recentlyacquired Curiosity Ink Media, a company dedicated to cultivating family-friendlyentertainment 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 producesaward-winning animation for some of the largest international media companies inthe world. Grom Social Enterprises also includes Grom Educational Services, whichhas 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 thatconstitute "forward-looking statements," including with respect to theCompany's private placement. No assurance can be given that the offering will becompleted on the terms described, or at all. Forward-looking statements are subjectto numerous conditions, many of which are beyond the control of the Company, includingthose set forth in the Risk Factors section of the Company's registration statementand preliminary prospectus for the offering filed with the SEC. Copies are availableon the SEC's website, www.sec.gov. The Company undertakesno obligation to update these statements for revisions or changes after the dateof this release, except as required by law.
MediaContact:
Marianne Romano
(818) 681-0849
Investor Contact:
John McNamara
917-658-2602