Boca Raton, FL - (NewMediaWire) - September 15, 2021 - Grom Social Enterprises, Inc.(NASDAQ:GROM) ("Grom" or the "Company"), the emerging social media and family entertainment company, today announcedthe closing of a $4.4 million private placement. The Investment is in the formof a 10% Original Issue Discount convertible note in the principal amount of $4,400,000that has an 18-month maturity and a fixed conversion price of $4.20 per shareof common stock, subject to adjustment, and warrants to purchase 813,278 sharesof common stock with an exercise price of $4.20 per share, subject toadjustment. GROM is required to make monthly payments in either cash orshares, commencing 75 days after closing. GROM has agreed to file aregistration statement registering for resale the shares of common stockissuable upon conversion of the note and upon exercise of the warrants on orbefore October 19, 2021. The warrants are not exercisable until the Company’sshareholders approve the issuance of the warrants and will be exercisable forfive years after such approval. The Company intendsto use the net proceeds from the private placement for working capital,joint ventures, possible acquisitions, partnerships, andgeneral corporate purposes.
EF Hutton, division of Benchmark Investments, LLC, acted asexclusive placement agent for the offering.
Thispress release shall not constitute an offer to sell or the solicitation of anoffer to buy any of the securitiesdescribed herein, nor shall there be any sale of these securities in any stateor jurisdiction in which such offer,solicitation or sale would be unlawful prior to registration or qualification under the securitieslaws of any such state or jurisdiction.
About Grom Social Enterprises, Inc.
Grom Social Enterprises, Inc. (NASDAQ: GROM) is a leading socialmedia platform and original contentprovider of entertainment for children under 13 years of age, providing safeand secure digital environments forkids that can be monitored by their parents or guardians. The Company has four operating subsidiaries, includingGrom Social, which delivers its content through mobile and desktop environments (web portal and apps) that entertainchildren, let them interact with friends,access relevant news, and play proprietary games, while teaching them theimportance of being a good digitalcitizen. The Company recently acquired Curiosity Ink Media, a company dedicatedto cultivating family-friendly entertainment and originalintellectual property (IP) development throughfilms, TV series,and consumer products.The Company owns and operatesTop Draw Animation, Inc., aleading supplier of premiumanimation production services whichproduces award-winning animation for some of the largest international mediacompanies in the world. Grom Social Enterprisesalso 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
Thispress release contains statements that constitute "forward-lookingstatements," including withrespect to the Company's private placement. No assurance can be given that theoffering will be completed on theterms described, or at all. Forward-looking statements are subject to numerousconditions, many of which are beyond the control of the Company,including those set forthin the Risk Factors sectionof the Company's registration statementand preliminary prospectusfor the offering filed with the SEC. Copies are available on the SEC's website, www.sec.gov. TheCompany undertakes no obligation to update these statements for revisions or changesafter the date of thisrelease, except as requiredby law.
Investor Relations Contact:
TraDigitalIR
John McNamara
+1-917-658-2602
john@tradigitalir.com