Jerrick Media announces US$1.2mln private placement

Jerrick Media Holdings Inc (OTCMKTS:JMDA), the creators of the digital publishing platform Vocal, announced that the company has closed on a US$1.2mln private placement.

The New Jersey-based holding company also announced it will be an early adopter of new accounting standards set forth by the Financial Accounting Standards Board. This standard will cut down on some derivative liabilities by accounting differently for a down round, which occurs when investors purchase stock via private financing at a lower value than the previous round.

READ: Jerrick Media CEO expects Vocal’s page views to triple by end 2018

“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 CEO Jeremy Frommer.

Jerrick’s social platform utilizes a proprietary algorithm to monetize stories on the site that enables content creators to receive donations directly from readers.

Story by ProactiveInvestors