Grom Social Enterprises Working Towards Definitive Documents Phase of Acquisition of Texas-based Arctic7 Full Gaming Developer

Boca Raton, April 30, 2024 – Grom Social Enterprises, Inc. (NASDAQ: GROM), a leading providor of family-friendly media and technology solutions, today announced that it has entered the definitive documents draft phase for  its slated acquisition of Arctic7, Inc. (Arctic7.com), the emerging Texas-based gaming industry service provider. The pending deal was announced jointly by both companies in March as the companies entered into a non-binding letter of intent. Upon completion of the transaction, Arctic7’s gaming development and virtual production services would be offered alongside Grom’s current portfolio of kids’ and family entertainment, social media and educational services. The move into definitive documents was confirmed today by Darren Marks, Grom’s CEO.

“Grom is poised and ready to advance past due diligence review as we join executives from Arctic7 in the preparation and negotiation of all necessary definitive transition documents,” explains Marks.

The acquisition of Arctic7 will introduce Grom to the growing and lucrative gaming industry, estimated at $180B ($20B of which represents kids’ gaming)  and allow Grom to explore synergies across its suite of offerings, which primarily cater to the entertainment demands of today’s families. Next year, Grom’s Curiosity Ink Media division will debut two co-productions, a feature film, Santa.com, and an original preschool series, Hey Fuzzy Yellow! – both slated for international distribution. These premiere franchises are the first film and TV series to come out of Grom's growing catalog of original intellectual property..

Looking forward, Arctic7 is anticipated to operate as a division within Grom and will continue  to execute against its current strategy of delivering exciting and engaging experiences for players  and partners. In the coming weeks and months, Grom and Arctic7 intend to explore partnership  opportunities and titles presented by the Grom acquisition.

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