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Grom Social Enterprises shares slides on pricing $5.0M securities offering

  • Grom Social Enterprises (NASDAQ:GROM) stock is down 7.32% after-hours after the firm has priced a public offering of 1,415,682 units at a price to the public of $2.89/unit and ~314,422 pre-funded units at a price of $2.889/pre-funded unit for an expected gross proceeds to be ~$5.0M.
  • Each unit consists of one share of common stock and two warrants, each to purchase one share of common stock.
  • The warrants will have an exercise price of $2.89/share, are exercisable immediately upon issuance, and will expire five years following the date of issuance.
  • Each pre-funded unit consist of one pre-funded warrant and two warrants identical to the warrants in the unit.
  • The pre-funded warrant is exercisable for one share of common stock for $0.001/share immediately until all of the pre-funded warrants are exercised.
  • Offering is expected to close on or about December 13, 2022.
  • Net proceeds from this offering will be used for general corporate purposes, and other working capital.