Sellers Note from Grom’s Purchase of NetSpective WebFilter Converts at Premium to Market
BOCA RATON, FL, Nov. 25, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Grom Social Enterprises (OTCQB: GRMM) ("Grom" or the "Company"), a leading social media platform and original content provider for children between the ages of 5 and 16, today announced that it has further strengthened its balance sheet through the conversion of a $1.0 million promissory note into equity at approximately $0.48 per share, a significant premium to market.
The $1.0 million promissory note, due January 2, 2020, originated from Grom’s purchase of its NetSpective WebFilter from Telemate.Net Software LLC. The Company’s web filtering business provides web security enforcement products and services to schools, government agencies and businesses, while providing Grom Social with a steady base of new users through the educational system.
“The conversion of this $1.0 million promissory note at a significant premium to market represents yet another step forward in our efforts to strengthen our balance sheet, following our recently announced elimination of an additional $2.0 of debt," said Darren Marks, Chairman and Chief Executive Officer of Grom Social Enterprises. “We believe are well on the way to achieving our objective of becoming a well-capitalized, NASDAQ-listed, company and creating long-term, sustainable value for our shareholders.”
About Grom Social Enterprises, Inc.
Grom Social Enterprises, Inc. (OTCQB: GRMM) is a leading social media platform and original content provider of entertainment for children 16 years and under; providing safe and secure digital environments for kids that can be monitored by their parents or guardians. The Company has several operating subsidiaries, including Grom Social, which delivers its content through mobile and desktop environments (web portal and apps) that entertain children, let them interact with friends, access relevant news, and play proprietary games, while teaching them about being a good digital citizen. The Company owns and operates Top Draw Animation, Inc., which produces award-winning animation content for some of the largest international media companies in the world. Grom Social Enterprises also includes Grom Educational Services, which has provided web filtering services for K-12 schools, government and private businesses. For more information, please visit gromsocial.com.
Safe Harbor Statement
This press release may contain forward looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods and the other risks set forth in Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and our Quarterly REports on Form 10-Q. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors. Among other matters, the Company may not be able to sustain growth or achieve profitability based upon many factors including, but not limited to general stock market conditions. We have incurred and will continue to incur significant expenses in our expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time. All forward-looking statements speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements or other information contained herein. Stockholders and potential investors should not place undue reliance on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements in this report are reasonable, we cannot assure stockholders and potential investors that these plans, intentions or expectations will be achieved. Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.