Jerrick Media Holdings, Inc. Accomplished Converting Over $12,000,000 of Securities In Addition to Placing $3,000,000 of Common Stock and Warrants as Part of an Upround Private Placement

Published on September 03, 2018

- In a show of confidence, both current and new investors participated in the incremental common stock and warrant private placement.- The newly fortified balance sheet, together with the capital infusion, optimizes Jerrick's growth and advancement ahead of the intended uplisting.

NEW YORK, Sept. 4, 2018 /PRNewswire/ -- Jerrick Media Holdings, Inc., (OTCQB: JMDA) (the "Company" or "Jerrick"), a technology company and the creators of Vocal, today announced the conversion of $12,138,152 of debt and preferred stock into common equity. The conversions eliminate 85% of all previously outstanding convertible debt and preferred stock. The Company expects the remaining 15% of debt and preferred securities to be converted before the end of September, 2018.

In addition, the Company announced its raise of $3,000,000 through an above-market equity private placement. Each unit consists of one (1) share of common stock and a warrant to purchase one (1) share of common stock and were sold at a price of $0.25 per unit. The warrants are exercisable for a period of five years at an exercise price of $0.30 per share, subject to adjustment. The net proceeds of the offering are expected to be used for working capital purposes. The Company has the right, but is not obligated, to raise an additional $2,000,000 through the end of September. Management is engaged in a number of conversations to that end. Chardan Capital Markets acted as sole placement agent for this offering. Additional capital raised will be used to further accelerate the Company's marketing, revenue production and short term technology development plans beyond management's current guidance.

The offering generated strong participation from long-term shareholders and friends of the Company, including the Special Equities Group at Chardan as well as former partners and associates from management's institutional network.

"Our balance sheet has never been stronger," said CEO Jeremy Frommer. "The commitment our unified investor base showed by converting 85% of debt and preferred securities is the strongest validation yet of Jerrick's business strategy and the power of its Vocal social platform. The remaining 15% of these investors, whom I have not yet talked to about the Company's future and the conversion opportunity, will be meeting with me over the next few weeks. Our advisors, investors and vendors, many of whom are one and the same, have been deeply involved in the success of Jerrick to date, and our team wishes to thank them for their unwavering efforts, guidance and determination."

"Key metrics, including number of creators, genre communities and published content show no signs of letting up. The market has previously not had the opportunity to focus on numbers such as 300,000 content creators, 34 communities, 300 - 400 daily long form content submissions and a quarter of a million submissions since early 2017. These numbers have historically been overshadowed by a microcap stock market that was singularly focused on balance sheet. The microcap space does not often see management solve financial hurdles while at the same time building a tangibly valuable technology product like Vocal. Jerrick's transformation of its balance sheet through the conversion and upround raise should now allow the investment community to focus on the Company's underlying value. Sustainable and scalable revenues become more predictable on the Vocal platform as users, creators and brands continue to demonstrate that it is a product they want and, equally important, need."

"It is the ability to scale revenues and audience that define the great technology companies. Successful execution of our business plan is realized through the quality of our management team. Assembled over four years, the Jerrick team is committed to achieving the rare success for a microcap stock. At the current development pace, Jerrick's flagship product Vocal will introduce a number of new features that will allow it to substantially increase its quarterly revenues within six months. This increase will be compounded by the ever expanding universe of creators and their audiences on the platform. I expect this virtuous cycle to act as a catalyst toward further expansion of both horizontal and vertical revenue streams in the first half of 2019. The pace of growth should continue to expand as we approach the Company's stock uplisting in July, 2019 and begin the next chapter in Jerrick's journey."

Forward Looking Statements

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