Singing Machine Announces Private $ 10 Million Prize

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Fort Lauderdale, Florida, August 06, 2021 (GLOBE NEWSWIRE) – The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) – the North American leader in consumer karaoke products – today announced that it has entered into a securities purchase agreement with large institutional investors and a strategic investor for a private placement of common stock and warrants exercisable on common stock which is expected to result in proceeds to the Company of approximately $ 10 million before deduction of transaction-related expenses payable by the Company. As part of the private placement, the Company has agreed to sell (i) 16,500,000 common shares as well as warrants to purchase up to 16,500,000 common shares, and (ii) 16,833,333 pre-funded warrants, each pre-funded warrants exercisable for one common share, as well as common warrants to purchase up to 16,833,333 common shares. Each common share and the accompanying common warrant are sold together at a combined offering price of $ 0.30, and each pre-funded warrant and the accompanying common warrant are sold together at a combined offer price of $ 0.29. The pre-funded warrants will be exercisable immediately, at a nominal exercise price of $ 0.01, and may be exercised at any time until all pre-funded warrants are exercised in full. The ordinary warrants will have an exercise price of $ 0.35 per share, be exercisable at the time of issuance and will expire five years from the date of an effective registration statement covering the shares underlying the shares. subscription warrants.

The private placement is expected to close on or around August 10, 2021, subject to customary closing conditions.

The securities for sale in the private placement were not registered under the Securities Act of 1933, as amended, or state securities laws at the time of issue and may not be offered or sold. in the United States without registration with the Securities and Exchange Commission (“SEC”) or an applicable exemption from these registration requirements. The Company has agreed to file one or more registration statements with the SEC recording the resale of the Common Shares and the Common Shares underlying the Warrants purchased under the Private Placement.

This press release does not constitute an offer to sell or a solicitation of an offer to buy such securities and there will be no sale of such securities in any state or jurisdiction in which such an offer, solicitation or sale would be illegal prior to registration or qualification. under the securities laws of any such state or jurisdiction.

About the singing machine

Singing machine® is the world leader in consumer karaoke products. The first in the United States to provide karaoke systems for home entertainment, the company sells its products worldwide through big box stores and online retailers. We offer the industry’s broadest line of home karaoke entertainment products, which allow consumers to find a machine to suit their needs and skill level. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology for singing, music listening, entertainment and social sharing. The Singing Machine offers consumers the best guarantees in the industry and access to over 24,000 songs to stream and download. Singing Machine products are sold by most major retailers in North America and internationally. To see www.singmachine.com for more details.

Investor Relations Contact:
Brendan Hopkins
(407) 645-5295
[email protected]
www.singmachine.com
www.singingmachine.com/investisseurs

Forward-looking statements
This press release contains beforeforward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such an advanceforward-looking statements are based on current expectations, estimates and projections regarding the business of the Company based, in part, on assumptions made by management and include, without limitation, statements regarding the expected closing of the business. ‘offer. You should review our risk factors in our SEC records which are incorporated herein by reference. Such an advanceforward-looking statements speak only as of the date on which they are made and the company does not undertake to update theforward-looking statement to reflect events or circumstances occurring after the date of this press release.


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