Market Overview

Jerrick Media Holdings, Inc. Accomplished Converting Over $12,000,000 of Securities In Addition to Placing $3,000,000 of Common Stock and Warrants as Part of an Upround Private Placement

Share:

Jerrick Media Holdings, Inc. Accomplished Converting Over $12,000,000 of Securities In Addition to Placing $3,000,000 of Common Stock and Warrants as Part of an Upround Private Placement

- In a show of confidence, both current and new investors participated in the incremental common stock and warrant private placement.

- The newly fortified balance sheet, together with the capital infusion, optimizes Jerrick's growth and advancement ahead of the intended uplisting.

PR Newswire

NEW YORK, Sept. 4, 2018 /PRNewswire/ -- Jerrick Media Holdings, Inc., (OTCQB:JMDA) (the "Company" or "Jerrick"), a technology company and the creators of Vocal, today announced the conversion of $12,138,152 of debt and preferred stock into common equity. The conversions eliminate 85% of all previously outstanding convertible debt and preferred stock. The Company expects the remaining 15% of debt and preferred securities to be converted before the end of September, 2018.

In addition, the Company announced its raise of $3,000,000 through an above-market equity private placement. Each unit consists of one (1) share of common stock and a warrant to purchase one (1) share of common stock and were sold at a price of $0.25 per unit. The warrants are exercisable for a period of five years at an exercise price of $0.30 per share, subject to adjustment. The net proceeds of the offering are expected to be used for working capital purposes. The Company has the right, but is not obligated, to raise an additional $2,000,000 through the end of September. Management is engaged in a number of conversations to that end. Chardan Capital Markets acted as sole placement agent for this offering. Additional capital raised will be used to further accelerate the Company's marketing, revenue production and short term technology development plans beyond management's current guidance.

The offering generated strong participation from long-term shareholders and friends of the Company, including the Special Equities Group at Chardan as well as former partners and associates from management's institutional network.

"Our balance sheet has never been stronger," said CEO Jeremy Frommer. "The commitment our unified investor base showed by converting 85% of debt and preferred securities is the strongest validation yet of Jerrick's business strategy and the power of its Vocal social platform. The remaining 15% of these investors, whom I have not yet talked to about the Company's future and the conversion opportunity, will be meeting with me over the next few weeks. Our advisors, investors and vendors, many of whom are one and the same, have been deeply involved in the success of Jerrick to date, and our team wishes to thank them for their unwavering efforts, guidance and determination."

"Key metrics, including number of creators, genre communities and published content show no signs of letting up. The market has previously not had the opportunity to focus on numbers such as 300,000 content creators, 34 communities, 300 - 400 daily long form content submissions and a quarter of a million submissions since early 2017. These numbers have historically been overshadowed by a microcap stock market that was singularly focused on balance sheet. The microcap space does not often see management solve financial hurdles while at the same time building a tangibly valuable technology product like Vocal. Jerrick's transformation of its balance sheet through the conversion and upround raise should now allow the investment community to focus on the Company's underlying value. Sustainable and scalable revenues become more predictable on the Vocal platform as users, creators and brands continue to demonstrate that it is a product they want and, equally important, need."

"It is the ability to scale revenues and audience that define the great technology companies. Successful execution of our business plan is realized through the quality of our management team. Assembled over four years, the Jerrick team is committed to achieving the rare success for a microcap stock. At the current development pace, Jerrick's flagship product Vocal will introduce a number of new features that will allow it to substantially increase its quarterly revenues within six months. This increase will be compounded by the ever expanding universe of creators and their audiences on the platform. I expect this virtuous cycle to act as a catalyst toward further expansion of both horizontal and vertical revenue streams in the first half of 2019. The pace of growth should continue to expand as we approach the Company's stock uplisting in July, 2019 and begin the next chapter in Jerrick's journey."

About Jerrick 
Jerrick is a holding company that develops technology-based solutions designed to solve for challenges that have resulted from disruption and evolution within the broad media and content generation environment. Its flagship product Vocal is a long-form, digital publishing platform focused on supporting content creators with content management tools that are embedded within digital communities. Vocal is architected to enable targeted marketing of branded content and e-commerce opportunities embedded within long-form content. Vocal's community sites are managed by a dedicated team, whose primary focus is on creating healthy communities and identifying monetization opportunities within them.

For news and more information please visit: https://jerrick.media/ 

Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. Forward-Looking Statements Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings.

The securities offered and sold by Jerrick in the private placement were not registered under the Securities Act of 1933 or state securities laws and may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission ("SEC") or an applicable exemption from such registration requirements. Jerrick has agreed to file a registration statement with the SEC covering the resale of the shares of common stock, including shares of common stock issuable upon exercise of the warrants, to be issued in the private placement. Any resale of Jerrick's securities under such resale registration statement will be made only by means of a prospectus.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

Company Contact:

Investor Relations:

Jeremy Frommer, CEO

Sharon Solomon

Jerrick Media Holdings, Inc.

Jerrick Media Holdings, Inc.

201-258-3770

201-258-3770

info@jerrick.media

ir@jerrick.media

 

Cision View original content:http://www.prnewswire.com/news-releases/jerrick-media-holdings-inc-accomplished-converting-over-12-000-000-of-securities-in-addition-to-placing-3-000-000-of-common-stock-and-warrants-as-part-of-an-upround-private-placement-300706145.html

SOURCE Jerrick Media Holdings, Inc.

View Comments and Join the Discussion!