News

Grom Social Enterprises, Inc. Announces Full Exercise of Over-Allotment Option in Public Offering

SmallCaps Daily July 15, 2021

138 3 minutes read

BOCA RATON – (NewMediaWire) – July 15, 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 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, 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 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.