Gaxos.ai Inc. Secures $5 Million Through Direct Stock Offering

Gaxos.ai Inc. Raises $5 Million Through Strategic Offering

Gaxos.ai Inc. (Nasdaq: GXAI), a pioneering force in developing artificial intelligence applications, has recently moved to enhance its capital structure by entering into definitive agreements for a direct offering of its common stock. This offering includes a total of 1,449,277 shares priced at $3.45 each, under Nasdaq's at-the-market conditions. This significant financial maneuver is designed not only to strengthen the company's balance sheet but also to further its mission in the AI sector.

Details of the Offering and Use of Proceeds

The move to raise capital comes as Gaxos.ai embarks on innovative projects that require robust funding. Alongside this public offering, the company will issue unregistered warrants to purchase an additional 1,449,277 shares at an exercise price of $3.32. These warrants will be valid for three years following their issuance. The expected close of this offering is anticipated shortly after customary conditions are met, marking a pivotal moment for Gaxos.ai.

Financial Impact of the Offering

With gross proceeds projected at roughly $5 million before expenses, Gaxos.ai is set to allocate the net funds towards working capital and expanding its corporate ventures. The involvement of H.C. Wainwright & Co. as the exclusive placement agent reflects the strategic direction and confidence in the company’s future.

The Regulated Process Behind the Offering

Gaxos.ai's common stock shares offered are registered under a shelf registration statement recently filed with the Securities and Exchange Commission (SEC). This process facilitates a streamlined approach for future investments, highlighting the Company's compliance with regulatory frameworks. The registration statement became effective shortly after filing, ensuring investor trust and transparency in this offering.

Warrants and Securities Details

It is essential to note that the warrants linked to this offering are issued under specific exemptions of the Securities Act, denoting that they are unregistered. This classification underscores the limitations on their sale within the U.S., emphasizing Gaxos.ai's adherence to legal obligations while pursuing innovative funding solutions.

About Gaxos.ai Inc.

Gaxos.ai Inc. is on a mission to transform the relationship between humans and artificial intelligence. The company's innovative applications span across vital sectors like health and wellness, alongside gaming, aiming to not just push boundaries but to redefine them. By leveraging AI, Gaxos.ai is committed to addressing pressing issues surrounding health, longevity, and entertainment.

Frequently Asked Questions

What is the purpose of the recent offering by Gaxos.ai?

The offering aims to raise capital to support working capital needs and general corporate purposes, enhancing the Company’s financial stability.

How many shares are being offered in the direct offering?

A total of 1,449,277 shares are being offered at a price of $3.45 per share, along with accompanying warrants.

Who is the placement agent for this offering?

H.C. Wainwright & Co. is acting as the exclusive placement agent for Gaxos.ai's $5 million registered direct offering.

What is the exercise price for the warrants issued?

The warrants, which are part of the offering, are priced at $3.32 per share and will remain exercisable for a period of three years.

What applications is Gaxos.ai focusing on?

Gaxos.ai is committed to advancing applications in health, wellness, and gaming, leveraging AI to create innovative solutions in these fields.

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