Grom Social Enterprises, Inc. Closes $4.4 Million Private Placement

Boca Raton, FL – (NewMediaWire) – September 15, 2021 – 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 are not exercisable until the Company’s

shareholders approve the issuance of the warrants and will be exercisable for

five years after such approval. The Company intends

to use the net proceeds from
the private placement for working capital,

joint ventures, possible acquisitions, partnerships, and

general corporate purposes.

EF Hutton, division of Benchmark Investments, LLC, acted as

exclusive placement agent for the offering.


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.

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


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.


John McNamara


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The post Grom Social Enterprises, Inc. Closes $4.4 Million Private Placement first appeared on Smallcaps Daily.

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