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SOCIAL REALITY, INC. (NASDAQ:SRAX) Files An 8-K Entry into a Material Definitive Agreement

SOCIAL REALITY, INC. (NASDAQ:SRAX) Files An 8-K Entry into a Material Definitive Agreement
Item 3.02 Entry into a Material Definitive Agreement.

Registered Direct Offering

Social Reality, Inc. (the “Company”) entered into securities purchase agreements dated April 7, 2019 (the “Purchase Agreements”) with certain investors (“Investors”) for the sale by the Company of 1,687,825shares of the Company’s Class A common stock, par value $0.001 per share (the “Common Stock”), at a purchase price of $4.00 per share resulting in gross proceeds to the Company of approximately $6.75 million (the “Registered Direct Offering”). The Purchase Agreements contain representations, warranties, and covenants of both the Investors and the Company that are customary for tranactions of this type.

The Registered Direct Offering is anticipated to close on April 10, 2019, subject to customary closing conditions. The Company estimates that the net proceeds from the offering will be approximately $6.17 million after deducting certain fees due to the placement agent and other estimated transaction expenses. The net proceeds received by the Company from the transactions will be used for working capital purposes.

The securities sold in the Registered Direct Offering were offered and sold by the Company to an effective “shelf” registration statement on FormS-3, which was declared effective by the United States Securities and Exchange Commission on November 28, 2016 (File No.333-214644).

In connection with the Registered Direct Offering, we entered into a placement agent agreement (“Placement Agent Agreement”) whereby the placement agent received a cash fee equal to 7.0% of the gross proceeds received by the Company from the sale of the shares of Common Stock, warrants to purchase up to 101,270 shares of Common Stock at an exercise price of $5.00 per share (the “Placement Agent Warrants”), and reimbursement of up to $50,000 for offering related expenses. The Placement Agent Warrants are exercisable beginning one-year after the date of issuance for a period of four years subsequent to such one-year anniversary, contain one-time demand and unlimited piggyback registration rights, and have a cashless exercise provision in the event the shares underlying the Placement Agent Warrants are not subject to an effective registration statement at the time of exercise. The Placement Agent Agreement also contains representations, warranties and indemnification and other provisions that are customary for transactions of this nature. The Placement Agent Warrants were sold and issued without registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance on the exemptions provided by Section4(a)(2) of the Securities Act for transactions not involving a public offering and Rule506 promulgated under the Securities Act, and in reliance on similar exemptions under applicable state laws.

The foregoing description of the Purchase Agreements, Placement Agent Agreement and Placement Agent Warrants, are not complete and are qualified in their entirety by references to the full text of the Purchase Agreement, Placement Agent Agreement and Placement Agent Warrant, which are filed hereto as exhibits 10.01, 10.02 and 4.01, respectively, and are incorporated by reference.

This Current Report on Form 8-K does not constitute an offer to sell any securities or a solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of any such state or jurisdiction.

The legal opinion and consent of the Silvestre Law Group, P.C. relating to the validity of the shares of Common Stock being issued in the Registered Direct Offering are filed herewith as Exhibits 5.01 and 23.01, respectively.

Item 3.02 Unregistered Sales of Equity Securities.

The disclosures in Item 3.02 of this Form8-Kregarding the Placement Agent Warrants are incorporated by reference into this Item 3.02.

Item 3.02 Other Events.

On April 8, 2019, the Company issued a press release announcing the pricing of the Registered Direct Offering. A copy of the press release is filed as Exhibit99.01 to this Current Report on Form8-K and is incorporated herein by reference.

Item 3.02 Financial Statement and Exhibits.

SOCIAL REALITY, Inc. Exhibit
EX-4.01 2 srax_ex4z01.htm FORM OF PLACEMENT AGENT WARRANT Form of Placement Agent Warrant   EXHIBIT 4.01 NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,…
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About SOCIAL REALITY, INC. (NASDAQ:SRAX)

Social Reality, Inc. is an Internet advertising and platform technology company. The Company provides tools to automate the digital advertising market. It is engaged in the sales of digital media advertising campaigns to advertising agencies and brands; sales of media inventory through real-time bidding (RTB) exchanges; sale and licensing of its SRAX Social platform and related media, and creation of custom platforms for buying media on SRAX for various brands. Its technology assists publishers in delivering their media inventory to the RTB exchanges. It provides the SRAX platform to brands and their advertising agencies. SRAX Social is a social media and loyalty platform that allows brands to launch and manage their social media initiatives. SRAX MD is an advertisement targeting and data platform for healthcare brands and medical content publishers. SRAX APP is a platform that allows publishers and content owners to launch native mobile applications through its SRAX platform.

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