ROSELAND, NJ - Gaxos.ai Inc. (NASDAQ:GXAI), a developer of artificial intelligence applications, has announced the sale of 1,346,669 shares of common stock at $3.00 each in a registered direct offering, according to a press release issued on December 27, 2024. The stock, which currently trades at $3.58, has shown significant momentum with a nearly 50% gain over the past week, according to InvestingPro data. The transaction is set to close around December 30, 2024, with customary closing conditions. The company expects to raise approximately $4 million before fees and expenses. The offering comes as Gaxos.ai maintains a strong liquidity position, with InvestingPro data showing a healthy current ratio of 17.12 and cash holdings exceeding debt obligations.
Concurrently, Gaxos.ai will issue unregistered warrants in a private placement, allowing holders to purchase an equivalent number of shares at the same price, exercisable immediately and expiring three years from the date of issuance. The common stock is being offered under a shelf registration statement that became effective on December 18, 2024.
H.C. Wainwright & Co. is serving as the exclusive placement agent for the offering. Gaxos.ai intends to use the net proceeds for working capital and general corporate purposes.
The shares of common stock are available through a prospectus supplement and accompanying prospectus, part of the registration statement filed with the Securities and Exchange Commission (SEC). Interested parties can obtain these documents from the SEC's website or directly from H.C. Wainwright & Co.
The warrants, alongside the shares of common stock they represent, have not been registered under the Securities Act of 1933 and are therefore subject to specific conditions for sale in the United States.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. It also contains forward-looking statements regarding the offering's completion and potential financial impact on Gaxos.ai's operations.
Gaxos.ai, which is expanding its AI offerings to include health and wellness, as well as gaming, aims to redefine the human-AI relationship and address sectors like health, longevity, and entertainment through its solutions.
The information reported is based on a press release statement and is intended for factual news purposes only.
In other recent news, Gaxos.ai Inc., a developer of artificial intelligence applications, has announced a registered direct offering of shares and a concurrent private placement of warrants. The company is set to sell around 1.45 million shares of common stock at $3.45 each, with expected gross proceeds nearing $5 million before fees and expenses. In addition to the stock offering, Gaxos.ai will issue warrants in a private placement that allows holders to purchase up to an additional 1.45 million shares at $3.32 per share. These warrants are immediately exercisable and will expire three years from the date of issuance.
The proceeds from the offering are intended for working capital and general corporate purposes. The offering is anticipated to close around December 20, 2024, with H.C. Wainwright & Co. acting as the exclusive placement agent.
In other developments, Gaxos.ai has launched Gaxos Labs, a suite of AI tools for game developers, and adjusted its financial strategy by reducing the exercise price for certain existing warrants and issuing new ones. The company is issuing new unregistered warrants for up to 2.51 million shares of common stock at a price of $2.33 per share, expected to generate gross proceeds of approximately $3.24 million before fees and offering expenses. These developments are part of Gaxos.ai's broader financial strategy, with net proceeds expected to be used for working capital and other general corporate purposes.
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