ROSELAND, NJ – Gaxos.ai Inc. (NASDAQ:GXAI), a developer of artificial intelligence applications, 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 dollars, has shown significant momentum with almost a 50% gain over the past week, according to InvestingPro data. The transaction is expected to close on or about December 30, 2024, subject to customary closing conditions. The company expects to raise approximately $4 million before fees and expenses. The offer comes as Gaxos.ai maintains a strong liquidity position, with InvestingPro data showing a healthy current ratio of 17.12 and cash in excess of debt obligations.
At the same time, 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 issue. The common shares are being offered under a policy registration statement effective December 18, 2024.
HC Wainwright & Co. serves as the exclusive placement agent for the offering. Gaxos.ai intends to use the net proceeds for working capital and general corporate purposes.
The common stock is available through a prospectus supplement and accompanying prospectus, part of a registration statement filed with the Securities and Exchange Commission (SEC). Interested parties may obtain these documents on the SEC’s website or directly from HC Wainwright & Co.
The warrants, like the common stock they represent, have not been registered under the Securities Act of 1933 and are therefore subject to special 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 completion of the offering and the potential financial impact on Gaxos.ai’s business.
Gaxos.ai, which is expanding its AI offering to health and wellness as well as gaming, aims to redefine the relationship between human and artificial intelligence and address sectors such as health, longevity and entertainment through its solutions.
The above information is based on a press release and is intended for factual news purposes only.
In other recent news, Gaxos.ai Inc., a developer of artificial intelligence applications, announced a registered direct stock offering and a concurrent private placement of warrants. The company is willing to sell about 1.45 million common shares at $3.45 each, with expected gross proceeds of close to $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 a price of $3.32 per share. These warrants are immediately exercisable and expire three years from the date of issue.
The proceeds of the offering are intended for working capital and general corporate purposes. The offering is expected to close on or about December 20, 2024, and HC Wainwright & Co. will act as exclusive placement agent.
In other developments, Gaxos.ai launched Gaxos Labs, a suite of AI tools for game developers, and adjusted its financial strategy by lowering the execution price for certain existing orders and issuing new ones. The company is issuing new non-registered warrants for up to 2.51 million shares of common stock at a price of $2.33 per share and is expected to generate gross proceeds of approximately $3.24 million before offering fees and expenses. These developments are part of Gaxos.ai’s broader financial strategy, where the net proceeds are expected to be used for working capital and other general corporate purposes.
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