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

Social media and family entertainment company Grom Social Enterprises Inc 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.