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Grom Social Enterprises, Inc. Announces Closing of $10.0 Million Public Offering

SmallCaps Daily June 21, 2021

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BOCA RATON – (NewMediaWire) – June 21, 2021 – 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, 39^th 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.