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Grom Social Enterprises, Inc. Closes $3.0 Million Public Offering

Lucosky Brookman congratulate its client Grom Social Enterprises, Inc. (NASDAQ: GROM; GROMW) on closing its underwritten public offering, marking a significant financial milestone for the company. The offering comprised 946,000 units and 54,000 pre-funded units, generating aggregate gross proceeds of approximately $3.0 million before accounting for underwriting discounts, commissions, and other estimated offering expenses.

Each unit in the offering consisted of one share of common stock, one Series A warrant, and one Series B warrant. The combined Series A and Series B warrants, known as the "Warrants," are exercisable at an exercise price of $3.00 per share and will remain valid for five (5) years from the date of issuance. The 54,000 pre-funded units included one pre-funded warrant, identical Series A and Series B warrants, and were exercisable for one share of common stock. The pre-funded warrants have an exercise price of $0.001 per share and are immediately exercisable, with the option to exercise until all pre-funded warrants are used in full.

Additionally, Grom Social Enterprises, Inc. extended an option to the underwriters, allowing them a 45-day window to purchase up to an additional 150,000 shares of common stock and/or pre-funded warrants, Series A warrants, or Series B warrants. This option was exercised by the underwriters on September 8, 2023, resulting in the purchase of an additional 150,000 Series A Warrants and 150,000 Series B Warrants. 

The net proceeds from this offering are slated for allocation towards working capital and general corporate purposes, strengthening the company's financial position and strategic growth initiatives.

Legal counsel for Grom Social Enterprises, Inc. was provided by Lucosky Brookman LLP, while EF Hutton, a division of Benchmark Investments, LLC, acted as the sole book running manager.

This successful offering underscores Grom Social Enterprises, Inc.'s commitment to its strategic objectives and its determination to fortify its presence in the market. The company is poised for a promising future, leveraging the proceeds to drive its mission forward.