The Singing Machine Company, Inc. announced that it has entered into a best efforts basis securities purchase agreement for private placement of 16,500,000 shares at a price of $0.3 per share for proceeds of $4,950,000 and 16,833,333 pre-funded warrants at a price of $0.29 per warrant for proceeds of $4,881666.57; for total proceeds of $9,831,666.57 on August 5, 2021. The transaction will include participation from new investor Stingray Group Inc. and certain other investors. The company will also issue 16,500,000 common warrants exercisable at $0.35 per share, will be exercisable upon issuance and will expire five years from the date of an effective registration statement covering the shares underlying the warrants.

The private placement is expected to close on or about August 10, 2021, subject to customary closing conditions. The securities issued are subject to lock-up agreement.