Grom Social Enterprises, Inc. Signs $8M Convertible Notes Financing Agreement
Portfolio Pulse from Benzinga Newsdesk
Grom Social Enterprises, Inc. has signed an $8M convertible notes financing agreement with an institutional investor. The deal includes the sale of two convertible promissory notes, each worth $4M, and the issuance of warrants for over 3 million shares. Shareholder approval is required, with closings contingent on this and SEC registration effectiveness. The funds will be used for general working capital and administrative purposes. EF Hutton is the exclusive placement agent for the transaction.

November 22, 2023 | 1:02 pm
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Grom Social Enterprises enters into an $8M convertible notes financing agreement, which may dilute current shareholders but provide necessary capital for operations.
The financing provides Grom with capital, which is positive, but the potential dilution from convertible notes and warrants could put downward pressure on the stock price. The net impact is uncertain, hence a neutral score.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100