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Boca Raton, FL – 
(NASDAQ:GROM) (“Grom” or the “Company”), the emerging social media and family entertainment company, today announced
the closing of a $4.4 million private placement. The Investment is in the form
of a 10% Original Issue Discount convertible note in the principal amount of $4,400,000
that has an 18-month maturity and a fixed conversion price of $4.20 per share
of common stock, subject to adjustment, and warrants to purchase 813,278 shares
of common stock with an exercise price of $4.20 per share, subject to
adjustment. GROM is required to make monthly payments in either cash or
shares, commencing 75 days after closing. GROM has agreed to file a
registration statement registering for resale the shares of common stock
issuable upon conversion of the note and upon exercise of the warrants on or
before October 19, 2021. The warrants are not exercisable until the Company’s
shareholders approve the issuance of the warrants and will be exercisable for
five years after such approval. The Company intends
to use the net proceeds from the private placement for working capital,
joint ventures, possible acquisitions, partnerships, and
general corporate purposes.
EF Hutton, division of Benchmark Investments, LLC, acted as
exclusive placement agent for the offering.
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.
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.
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.
TraDigital
IR
John McNamara
+1-917-658-2602
john@tradigitalir.com
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