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Lucosky Brookman Represents Grom Social Enterprises, Inc. in Closing a $4.0 Million Private Placement

Lucosky Brookman congratulates its client Grom Social Enterprises, Inc. (NASDAQ: GROM; GROMW) in the successful closing of a $4.0 million private placement. This significant financial transaction, which bolsters Grom's position in the media, technology, and entertainment sector, marks a crucial step in the company's growth and strategic initiatives.

Grom Social Enterprises, Inc., recognized for its dedication to family-friendly programming, web filtering technology, and safe social media for kids, officially closed the first phase of its private placement of a convertible promissory note. The notes, with an initial principal amount of $4,000,000, were issued pursuant to the securities purchase agreement entered into on November 9, 2023, with a single institutional investor.

The institutional investor, a key participant in this transaction, demonstrated confidence in Grom's business model and growth potential. As part of the agreement, Grom has committed to issuing warrants to the investor, enabling them to acquire a total of 1,514,072 shares of Common Stock. This comprises 757,036 shares of Common Stock with an exercise price of $1.78 per share and an additional 757,036 shares with an exercise price of $0.001 per share. These warrants provide the investor with a unique opportunity to align their interests with Grom's future success.

Lucosky Brookman acted as a company counsel to Grom Social Enterprises, Inc., while EF Hutton LLC acted as the exclusive placement agent for this offering.

The net proceeds from this private placement will be utilized by Grom for general working capital and administrative purposes. This strategic allocation of funds positions the company for sustained growth and innovation in its mission to provide safe and engaging digital experiences for children and families.