NEW YORK, April 19, 2018 /PRNewswire/ -- Jerrick Media Holdings, Inc., ( OTCQB: JMDA) (the "Company" or "Jerrick"), a technology company and the creators of Vocal, today announced that it completed an offering of units of its securities (the "Units"), generating gross proceeds of $1,200,000, of which $1,059,400 was in the form of gross cash proceeds and $140,600 was in the form of existing holders of accounts payable, extinguishing such payables in favor of the issuance of Units in the aggregate payable amount. Of the gross cash proceeds, over $500,000 was contributed by management and insiders. Each Unit consists of (i) a 14% convertible promissory note (the "Notes"), convertible into shares of the Company's common stock at a price of $0.20 per share, (ii) a four-year warrant to purchase the Company's common stock equal to one hundred percent (100%) of the shares into which the Notes can be converted. More details related to the Offering can be found on sec.gov on the Company's current report on Form 8-K filed on April 19, 2018.
In addition, pursuant to the issuing of ASC 2017-11, scheduled to be effective during 2018, Jerrick has elected on early adoption. The guidance permits certain down-round features embedded in financial instruments to be accounted for differently. The early adoption is beneficial as it results in the Company's ability to eliminate a significant portion of certain derivative liabilities. The Company believes this early adoption will allow for a more accurate reflection of JMDA's balance sheet and results of operations.
"Adoption of the new accounting standards will significantly improve shareholder value and will also serve as a first step towards execution of our NASDAQ uplisting strategy," said Jerrick CEO Jeremy Frommer.
Due to the decision to early adopt, the Company's filing of its Annual Report on Form 10-K has been delayed. The Company expects filing to be completed in the near future.
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.
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SOURCE Jerrick Media Holdings, Inc.