Grom Social Enterprises, Inc. Amends Private Placement to Increase Total Raise to up to $10,400,000

Boca Raton, FL – (NewMediaWire) – October 21, 2021 – 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

Nasdaqs rules, among other things. The Company

intends to use the net proceeds from the private placement for potential joint ventures,


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.


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

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, The Company undertakes

no obligation to update these statements for revisions or changes after the date

of this release, except as required by law.



Marianne Romano

(818) 681-0849


Investor Contact:

John McNamara


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The post Grom Social Enterprises, Inc. Amends Private Placement to Increase Total Raise to up to $10,400,000 first appeared on Smallcaps Daily.

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