BOCA RATON, Fla., Sept. 06, 2023 (GLOBE NEWSWIRE) — Grom Social Enterprises, Inc. (NASDAQ: GROM) (the “Company”), a media, technology, and entertainment company dedicated to family-friendly programming, web filtering technology, and safe social media for kids, today announced that its Board of Directors has approved a 1-for-20 reverse stock split of its common shares (the “Reverse Split”) primarily to comply with Nasdaq’s minimum bid price requirement. The Reverse Split will be effective on September 7, 2023, and the Company’s common stock will trade on a post-split basis under the same symbol, GROM, commencing with the opening of trading on the Nasdaq Capital Market on September 7, 2023.
Following the effectiveness of the Reverse Split, the CUSIP number for the Company’s common stock will be 39878L 506. As a result of the Reverse Split, every 20 shares of common stock issued and outstanding will be exchanged for one new share of common stock. No fractional shares will be issued to any holder, and instead of issuing such fractional shares, the Company will round up such fractional shares to the nearest whole share. Immediately after the Reverse Split becomes effective, the Company will have approximately 452,219 shares of common stock issued and outstanding. Additionally, the exercise price per share of common stock subject to the Company’s warrants will be proportionately increased, such that the exercise price immediately following the Reverse Split will equal the product of twenty (20) and the exercise price immediately prior to the Reverse Split. The number of shares of common stock subject to warrants immediately following the Reverse Split will equal 1/20th (0.05 or 5%) of the number of shares of common stock subject to warrants immediately prior to the Reverse Split.