Grom Social Enterprises recently announced a public offering of 946,000 units at $3 per unit, along with 54,000 pre-funded units at $2.999 per unit. As a result, Grom Social Enterprises’ shares experienced a significant decline of 45% to $2.24.
Struggles in the Market
The stock has hit its 52-week low at $2 during the session, highlighting a staggering decline of 99% over the past year.
Understanding the Offering
Each unit in the public offering includes one share of stock, one Series A warrant for purchasing one additional share of stock, and one Series B warrant.
The warrants have an exercise price of $3 per share, allowing investors to exercise them immediately upon issuance. They will remain valid for a period of five years from the date of issuance.
Closing and Proceeds
The closing of this offering is expected to take place around Tuesday. Grom Social Enterprises anticipates raising approximately $3 million from this endeavor.
Allocation of Proceeds
The proceeds gained from this public offering will be allocated towards various purposes, including:
- General corporate activities
- Potential acquisitions
- Research and development for original content and technology
- Establishing strategic partnerships
- Supporting working capital
- Covering capital expenditures
- And other general corporate necessities.