Boca Raton, FL – 
(“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 Romano
(818) 681-0849
Investor Contact:
John McNamara
917-658-2602