Gaxos.ai Secures $5 Million with New Stock Offering Initiative

Gaxos.ai Announces New Stock Offering to Raise $5 Million

Gaxos.ai Inc. (NASDAQ: GXAI), an emerging player in artificial intelligence applications, has embarked on a significant financial initiative to bolster its operations. The company has recently revealed a registered direct offering of shares along with a concurrent private placement of warrants, designed to raise an estimated $5 million. Given Gaxos.ai's current market capitalization of approximately $9.5 million, this offering represents a strategic step toward enhancing its liquidity and supporting future growth.

Details of the Stock Offering

In this initiative, Gaxos.ai will offer 1,449,277 shares of its common stock, priced at $3.45 each. This pricing represents a modest premium over the stock's current trading price of $3.32. While recent analysis indicates that the company's stock has experienced considerable volatility, including a decline of over 10% in the past week, the underlying liquidity appears robust.

Warrants Private Placement

In addition to the stock offering, Gaxos.ai will issue warrants in a private placement. These warrants will allow holders to purchase an additional 1,449,277 shares at a price of $3.32 per share and are immediately exercisable for a total period of three years. This structured approach not only attracts investment but also provides existing shareholders with options to increase their stake in the company.

Use of Proceeds

The capital raised from this offering will be directed toward working capital and general corporate purposes. The initiative is being conducted under an effective shelf registration statement filed with the Securities and Exchange Commission, indicating a compliant and transparent process for investors. The shares being offered are part of a comprehensive prospectus designed to ensure that all details surrounding the issuance are clear and accessible to potential investors.

Investments for Future Growth

Gaxos.ai is poised to use the proceeds from this offering to fuel its ambitions as it continues to innovate within the AI sector. The firm has recently launched Gaxos Labs, a suite of AI tools specifically designed for game developers. This initiative includes a generative AI asset editor and a Unity plugin, expressing Gaxos.ai's commitment to enhancing creativity and opening new revenue streams for game studios.

Financial Strategy Adjustments

In parallel with the stock offering, Gaxos.ai is making adjustments to its financial strategy. The company has proactively reduced the exercise price for certain existing warrants from $5.50 to $2.58 for 1,256,734 shares. Furthermore, new warrants will be issued for up to 2,513,468 shares of common stock at a price point of $2.33 each. These changes, facilitated by H.C. Wainwright & Co., are projected to generate gross proceeds of about $3.24 million before any fees.

The Broader Picture

These developments signify not just a tactical financial maneuver but a broader strategy aimed at ensuring Gaxos.ai's long-term sustainability and growth. The initiation of a new registration statement with the SEC for the resale of shares from the new warrants underscores the company’s intent to enhance liquidity further and maintain investor confidence.

Frequently Asked Questions

What is the amount raised by Gaxos.ai in the new stock offering?

Gaxos.ai aims to raise approximately $5 million through its new stock offering.

How many shares will Gaxos.ai be selling in this offering?

The company plans to sell 1,449,277 shares of common stock.

What is the purpose of the funds raised from the offering?

The proceeds are intended for working capital and general corporate purposes.

What new products is Gaxos.ai launching?

Gaxos.ai has launched Gaxos Labs, featuring AI tools that aid game developers.

Who is managing the offering of Gaxos.ai's stocks?

H.C. Wainwright & Co. is serving as the exclusive placement agent for this transaction.

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