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.
For news and more information please visit: https://jerrick.media/
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.
SOURCE Jerrick Media Holdings, Inc.