Grom Social Enterprises, Inc. Amends Private Placement to Increase Total Raise to up to $10,400,000
October 21 2021 - 5:16PM
via NewMediaWire -- Grom Social Enterprises, Inc. (NASDAQ:GROM)
("Grom" or the "Company"), the emerging social media and family
entertainment company, today announced an increase to the total
amount of its previously announced private placement of convertible
notes and warrants. On September 14, 2021, L1 Capital Global
Opportunities Master Fund (“L1 Capital”) purchased from the Company
(i) a convertible note in the principal amount of $4,400,000, with
a 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 shares of common stock, with an
exercise price of $4.20 per share, subject to adjustment. The
transaction documents for the private placement anticipated a
second investment by L1 Capital in the amount of $1,500,000,
subject to certain conditions. As of October 20, 2021, the amount
for the proposed second investment has been increased to up to
$6,000,000 for total gross proceeds to the Company of $10,400,000,
subject to certain conditions being met. The second closing
is subject to the Company obtaining shareholder approval, as
required by Nasdaq’s rules, among other things. The Company intends
to use the net proceeds from the private placement for potential
joint ventures, acquisitions or partnerships, and for working
capital and general corporate purposes.
EF Hutton, division of Benchmark Investments,
LLC, acted as exclusive placement agent for the private
placement.
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.
Media Contact:Marianne Romanomedia.contact@gromsocial.com.
(818) 681-0849
Investor Contact:John
McNamarajohn@tradigitalir.com917-658-2602
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