Benzinga | Sep 16, 2021 06:59AM EDT

Grom Social Raises $4.4M Via Private Placement Of Convertible Notes At Premium

* Social media and family entertainment company Grom Social Enterprises Inc (NASDAQ:GROM) closed a $4.4 million private placement.

* The placement involved a 10% original issue discount convertible note of $4.4 million with an 18-month maturity and a fixed conversion price of $4.20 per share and five-year warrants to purchase 0.81 million shares at an exercise price of $4.20 per share. The conversion price implies a 55.6% premium to Grom's September 14 closing price of $2.70.

* GROM will have to make monthly payments in either cash or shares, commencing 75 days after closing.

* The proceeds will serve working capital, joint ventures, possible acquisitions, partnerships, and general corporate purposes.

* Price Action: GROM shares closed lower by 2.22% at $2.64 on Wednesday.