Benzinga | Oct 21, 2021 05:21PM EDT

Grom Social Enterprises Amends Private Placement To Increase Total Raise To Up to $10.4M

Grom Social Enterprises, Inc. (NASDAQ:GROM) ("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.