grom-social-enterprises,-inc-closes-$4.4-million-private-placement
/ / / Grom Social Enterprises, Inc. Closes $4.4 Million Private Placement
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Grom Social Enterprises, Inc. Closes $4.4 Million Private Placement

By Daniel Webster, dWeb.News Publisher

| Source: Grom Social Enterprises, Inc.

Boca Raton, FL, Sept. 15, 2021 (GLOBE NEWSWIRE) — via NewMediaWire — Grom Social Enterprises, Inc. (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 cannot be exercised until the Company’s shareholders approve their issuance. They will remain valid for five years. The net proceeds of the private placement will be used by the Company for working capital, joint ventures and possible acquisitions, partnerships, as well as general corporate purposes.

EF Hutton, a division of Benchmark Investments, LLC, was the exclusive placement agent.

This press release does not constitute an offer or solicitation to purchase any securities.

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. Grom Social is one of four subsidiaries. It delivers its content via mobile and desktop environments (web portals and apps). This allows children to interact with their friends, get relevant news and play proprietary games while also teaching them how to be a digital citizen. Curiosity Ink Media was recently acquired by the Company. This company is dedicated to creating family-friendly entertainment as well as original intellectual property (IP). It produces films, TV series and consumer products. Top Draw Animation, Inc., which is a major supplier of premium animation production service, is owned and operated by the Company. This company produces award-winning animations for some of the most important international media companies. Grom Social Enterprises also includes Grom Educational Services, which has provided web filtering solutions for K-12 schools, government, and private business. Visit gromsocial.com for more information.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the Company’s private placement. It is impossible to guarantee that the offering will take place on the terms or at all. Forward-looking statements are subjected to many conditions. Many of these are beyond the Company’s control, including those listed in the Risk Factors section and preliminary prospectus filed with the SEC. You can find copies of the SEC’s website at http://www.sec.gov. These statements are subject to revisions and changes by the Company. Copies can be found on the SEC’s website, http://www.sec.gov.

Investor Relations Contact:

TraDigital IR

John McNamara

+1-917-658-2602

john@tradigitalir.com

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