Grom Social enters $650K convertible note financing with Generating Alpha, subject to shareholder approval

Grom Social Enterprises, Inc.

$650,000 convertible note sold at $520,000 (20% OID) to Generating Alpha Ltd.; 12% interest, 1-year maturity.
Note convertible at $0.87/share, or alternate at 80% of lowest 40-day trading price before conversion.
Warrant issued for 962,962 shares at $0.001/share exercise price; effectively deep in-the-money.
Transaction requires shareholder approval; voting agreement with certain shareholders to vote in favor.
EF Hutton acting as placement agent; registration rights agreement to file resale registration within 30 days of closing.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Grom Social Enterprises, Inc. entered into Securities Purchase Agreement with Generating Alpha Ltd. valued at $650,000 (effective 2024-04-01).

Action: entry
Agreement: equity purchase
Counterparty: Generating Alpha Ltd.
Value: $650,000
Effective: 2024-04-01

Exact text from the filing

On April 1, 2024, Grom Social Enterprises, Inc., a Florida corporation (the “ Company ”), entered into a Securities Purchase Agreement (the “ SPA ”) with Generating Alpha Ltd., a Saint Kitts and Nevis Corporation (the “ Investor ”) pursuant to which the Company has agreed to sell a convertible promissory note of the Company (the “ Note ”), having an initial principal amount of $650,000, for a price of $520,000.

View on SEC.gov

419 material agreements filed in the last 30 days. Browse all material agreements →

Source: SEC EDGAR

accession 0001683168-24-002155

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.