Gaxos.ai Secures $3.24 Million from Warrant Exercises
Gaxos.ai Announces Successful Warrant Exercise
Gaxos.ai Inc. (NASDAQ: GXAI), a forward-thinking company focused on developing cutting-edge artificial intelligence applications, recently announced a significant achievement in its financial strategy. By entering into a definitive agreement to exercise existing warrants, Gaxos has set the stage to raise approximately $3.24 million in gross proceeds. The initiative marks a pivotal moment for the company as it aims to leverage these funds for further growth and innovation.
Details of the Warrant Exercise
The warrants in question allow for the purchase of a total of 1,256,734 shares of Gaxos’ common stock. Originally issued with an exercise price of $5.50 per share, these warrants will now be exercised at a reduced price of $2.58 per share. This strategic move not only facilitates immediate funding but also underscores the company's commitment to enhancing shareholder value.
Introducing New Warrants
In exchange for the cash exercise of these existing warrants, Gaxos will issue new unregistered warrants entitling holders to purchase up to 2,513,468 additional shares of common stock. These new warrants will be immediately exercisable, targeting an attractive exercise price of $2.33 per share. The terms of these new warrants vary, with half of them set to expire in five and a half years and the other half within a shorter, twenty-four month period.
Anticipated Closing of the Offering
The closing of this exciting offering is expected to occur shortly, pending the normal closing conditions typical for transactions of this nature. Gaxos is poised to effectively utilize funds from both the exercise of existing warrants and new issuances to fuel its operational needs and strategic objectives.
Utilization of Proceeds
With these expected proceeds, Gaxos aims to bolster its working capital, ensuring that it has the necessary resources to continue its innovative pursuits in AI and expand its market presence. This focus is vital as Gaxos works to redefine the landscape of artificial intelligence across multiple sectors.
Compliant Offerings Under Regulation D
The new warrants are part of a private placement structured under Section 4(a)(2) of the Securities Act of 1933, accompanied by Regulation D guidelines. Thus, the shares associated with these new warrants have not been registered, meaning they can only be sold under specific conditions. To ensure future compliance and broader market access, Gaxos is committed to filing a registration statement as soon as feasible.
About Gaxos.ai Inc.
Gaxos.ai is more than just a technology company as it strives to reshape the interaction between humans and artificial intelligence. With a keen eye on sectors such as health and wellness alongside entertainment gaming, Gaxos is not only expanding its range of applications but is also actively committed to enhancing health, longevity and entertainment solutions leveraging advanced AI technologies.
Frequently Asked Questions
What is the significance of Gaxos.ai's recent warrant exercise?
The warrant exercise has enabled Gaxos.ai to secure $3.24 million, which will support its strategic growth and innovation in artificial intelligence applications.
What are the new warrants offered by Gaxos.ai?
The new warrants allow for the purchase of additional shares at a price of $2.33 each, providing investors an opportunity for future equity participation.
How long will the new warrants be valid?
Half of the new warrants will be valid for five and a half years, while the other half will have a shorter validity of twenty-four months.
What will Gaxos.ai do with the funds raised?
The proceeds are intended for working capital and furthering the company’s technological advancements and projects in AI.
How is Gaxos.ai ensuring compliance with securities laws?
Gaxos.ai is following legal frameworks by registering the new warrants under applicable laws and planning to file a registration statement to cover future resale of shares.
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