secwatch.observer — SEC 8-K summary
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Issuer:     Grom Social Enterprises, Inc. (—)
CIK:        0001662574
Form:       8-K
Filed at:   2024-03-15T23:59:59+00:00
Accession:  0001683168-24-001501
Event type: m_and_a
Sentiment:  negative
Materiality: 0.90
Item codes: 1.01, 3.02, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Grom Social enters $25M SPA with Generating Alpha, amends prior deal, warrant price cut to $0.001
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- On March 11, 2024, Grom Social amended the November 2023 SPA to reduce Warrant A and Warrant C exercise prices from $1.78 to $0.001 per share.
- The amendment added a mandatory reverse stock split covenant if the closing price falls below $0.25 for five consecutive trading days.
- Grom Social entered a new March 2024 SPA with Generating Alpha Ltd. to sell up to $25 million of common stock at 85% of the lowest traded price over 10 days.
- A new warrant for 2,314,814 shares at $0.001 per share was issued as a commitment fee in the March 2024 SPA.
- The convertible note was amended to include a conversion floor price of $0.25, with additional cash-only note issuance if the trading price is below that floor.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1662574/000168316824001501/0001683168-24-001501-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1662574/000168316824001501/grom_8k.htm
  HTML page:      https://secwatch.observer/filing/0001683168-24-001501

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