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Gaxos.ai Inc. Announces $4 Million Registered Direct Offering Priced At-the-Market Under Nasdaq Rules

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Gaxos.ai (Nasdaq: GXAI) has announced a $4 million registered direct offering priced at-the-market under Nasdaq rules. The company will sell 1,346,669 shares of common stock at $3.00 per share. Additionally, in a concurrent private placement, Gaxos will issue unregistered warrants to purchase up to 1,346,669 shares with an exercise price of $3.00 per share, exercisable upon issuance and expiring after three years.

The offering, expected to close around December 30, 2024, is being managed by H.C. Wainwright & Co. as the exclusive placement agent. The company plans to use the net proceeds for working capital and general corporate purposes. The common stock shares are being offered through a shelf registration statement, while the warrants are being issued through a private placement.

Gaxos.ai (Nasdaq: GXAI) ha annunciato un offerta diretta registrata di 4 milioni di dollari prezzata in base alle regole di Nasdaq. L'azienda venderà 1.346.669 azioni di azioni ordinarie a 3,00 dollari per azione. Inoltre, in un collocamento privato congiunto, Gaxos emetterà warrant non registrati per acquistare fino a 1.346.669 azioni a un prezzo di esercizio di 3,00 dollari per azione, esercitabili al momento dell'emissione e che scadranno dopo tre anni.

Si prevede che l'offerta si chiuda intorno al 30 dicembre 2024 ed è gestita da H.C. Wainwright & Co. come agente di collocamento esclusivo. L'azienda prevede di utilizzare il ricavato netto per il capitale circolante e per scopi aziendali generali. Le azioni ordinarie vengono offerte tramite una dichiarazione di registrazione a scaffale, mentre i warrant vengono emessi attraverso un collocamento privato.

Gaxos.ai (Nasdaq: GXAI) ha anunciado una oferta directa registrada de 4 millones de dólares a precio de mercado según las reglas de Nasdaq. La compañía venderá 1.346.669 acciones ordinarias a 3,00 dólares por acción. Además, en un colocado privado concurrente, Gaxos emitirá warrants no registrados para comprar hasta 1.346.669 acciones con un precio de ejercicio de 3,00 dólares por acción, que se pueden ejercer al momento de la emisión y expirarán después de tres años.

Se espera que la oferta cierre alrededor del 30 de diciembre de 2024, y está siendo gestionada por H.C. Wainwright & Co. como agente exclusivo de colocación. La compañía planea utilizar los ingresos netos para capital de trabajo y fines corporativos generales. Las acciones ordinarias se ofrecen a través de una declaración de registro en estantería, mientras que los warrants se emiten a través de un colocamiento privado.

Gaxos.ai (Nasdaq: GXAI)는 나스닥 규정에 따라 시장 가격으로 설정된 400만 달러의 등록 직접 공급을 발표했습니다. 회사는 주당 3.00달러에 1,346,669주의 보통주를 판매합니다. 또한, 동시 진행되는 사모 배급을 통해 Gaxos는 1,346,669주를 구매할 수 있는 등록되지 않은 워런트를 주당 3.00달러의 행사 가격으로 발행할 예정이며, 이는 발행 즉시 행사 가능하고 3년 후에 만료됩니다.

이 오퍼링은 2024년 12월 30일경에 종료될 것으로 예상되며, H.C. Wainwright & Co.가 독점 배급 대행사로 관리합니다. 회사는 순수익을 운영 자본 및 일반 기업 목적으로 사용할 계획입니다. 보통주 공유는 선반 등록 성명을 통해 제공되며, 워런트는 사모 배급을 통해 발행됩니다.

Gaxos.ai (Nasdaq: GXAI) a annoncé une offre directe enregistrée de 4 millions de dollars à prix de marché conformément aux règles de Nasdaq. L'entreprise va vendre 1 346 669 actions ordinaires au prix de 3,00 dollars par action. De plus, dans le cadre d'un placement privé concomitant, Gaxos émettra des bons non enregistrés permettant d'acheter jusqu'à 1 346 669 actions à un prix d'exercice de 3,00 dollars par action, exerçables lors de l'émission et expirant après trois ans.

L'offre, qui devrait se clôturer aux alentours du 30 décembre 2024, est gérée par H.C. Wainwright & Co. en tant qu'agent de placement exclusif. L'entreprise prévoit d'utiliser le produit net pour le fonds de roulement et des fins corporatives générales. Les actions ordinaires sont proposées par le biais d'une déclaration d'enregistrement en continu, tandis que les bons sont émis via un placement privé.

Gaxos.ai (Nasdaq: GXAI) hat ein registriertes Direktangebot von 4 Millionen Dollar angekündigt, das gemäß den Nasdaq-Regeln zum Marktpreis eingestellt ist. Das Unternehmen wird 1.346.669 Stammaktien zu je 3,00 Dollar pro Aktie verkaufen. Zusätzlich wird Gaxos im Rahmen einer gleichzeitigen Privatplatzierung nicht registrierte Optionen ausgeben, um bis zu 1.346.669 Aktien zu einem Ausübungspreis von 3,00 Dollar pro Aktie zu erwerben, die bei Ausgabe ausgeübt werden können und nach drei Jahren ablaufen.

Das Angebot, das voraussichtlich rund am 30. Dezember 2024 abgeschlossen wird, wird von H.C. Wainwright & Co. als alleiniger Platzierungsagent verwaltet. Das Unternehmen plant, die Nettoerlöse für Betriebskapital und allgemeine Unternehmenszwecke zu verwenden. Die Stammaktien werden über eine Shelf-Registrierungserklärung angeboten, während die Optionen über eine Privatplatzierung ausgegeben werden.

Positive
  • Secured $4 million in additional funding through share offering
  • Offering priced at market value, indicating fair market valuation
  • Warrants issued at same price as shares, minimizing immediate dilution
Negative
  • Significant shareholder dilution through issuance of 1,346,669 new shares
  • Additional potential dilution from warrant exercise of 1,346,669 shares
  • Share offering may put downward pressure on stock price

Insights

This <money>$4 million</money> registered direct offering represents a significant capital raise for Gaxos.ai, priced at <money>$3.00</money> per share with matching warrants. The deal structure reveals concerning aspects: the at-market pricing suggests investor premium, while the 1:1 warrant coverage at the same price point indicates substantial dilution risk. With a market cap of just <money>$10.5 million</money>, this offering represents nearly <percent>38%</percent> dilution to existing shareholders, not counting potential warrant exercises.

The use of proceeds for "working capital and general corporate purposes" lacks specific strategic initiatives, suggesting possible cash flow pressures. The involvement of H.C. Wainwright, known for micro-cap financings, combined with the concurrent private placement of warrants, typically indicates challenging market conditions for raising capital through traditional means.

In simple terms: The company is selling new shares at current market price and throwing in free options to buy more shares later, which usually happens when companies struggle to attract investors. This financing structure could put significant downward pressure on the stock price.

The dual-component structure of this offering - combining registered shares with private placement warrants - reflects a sophisticated regulatory compliance strategy. The S-3 shelf registration, effective December 18, 2024, provides immediate access to public markets, while the Section 4(a)(2) private placement of warrants offers flexibility without registration requirements. However, the unregistered status of the warrants and underlying shares creates resale restrictions that could impact liquidity.

For everyday investors: Think of this like a house with two different types of doors - one that anyone can use (the registered shares) and another that's restricted to specific people (the warrant shares). This setup gives the company more options but could make it harder for some investors to sell certain parts of their investment.

Roseland, NJ, Dec. 27, 2024 (GLOBE NEWSWIRE) -- Gaxos.ai Inc. (Nasdaq: GXAI), (“Gaxos” or the “Company”), a company developing artificial intelligence applications across various sectors, today announced that it has entered into definitive agreements for the purchase and sale of an aggregate of 1,346,669 shares of its common stock at a purchase price of $3.00 per share in a registered direct offering priced at-the-market under Nasdaq rules. In addition, in a concurrent private placement, the Company will issue unregistered warrants to purchase up to 1,346,669 shares of common stock. The warrants will have an exercise price of $3.00 per share, will be exercisable upon issuance and expire three years following the date of issuance. The closing of the offering is expected to occur on or about December 30, 2024, subject to the satisfaction of customary closing conditions.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The aggregate gross proceeds to the Company from the offering are expected to be approximately $4 million, before deducting the placement agent fees and other offering expenses payable by the Company. The Company currently intends to use the net proceeds from the offering for working capital and other general corporate purposes.

The shares of common stock (but not the warrants issued in the private placement or the shares of common stock underlying such warrants) are being offered by the Company pursuant to a “shelf” registration statement on Form S-3 (File No. 333-283758) filed with the Securities and Exchange Commission (“SEC”) on December 12, 2024 and became effective on December 18, 2024. The registered direct offering of the shares of common stock is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. The prospectus supplement and the accompanying prospectus relating to the shares of common stock being offered in the registered direct offering will be filed with the SEC and be available at the SEC's website at www.sec.gov. Electronic copies of the prospectus supplement and the accompanying prospectus relating to the registered direct offering may also be obtained, when available, by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by telephone at (212) 856-5711 or e-mail at placements@hcwco.com.

The warrants described above are being issued in a concurrent private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the warrants and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Gaxos.ai Inc.

Gaxos.ai isn’t just developing applications; it’s aim is to redefine the human-AI relationship. Our offerings are being expanded to include health and wellness, as well as gaming. We’re committed to addressing health, longevity, and entertainment, through AI solutions.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements that involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs and are subject to market and other conditions. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Forward-looking statements include statements regarding, the ability of the Company to consummation of the offering, the satisfaction of the closing conditions of the offering and the use of proceeds therefrom. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s filings with the SEC.

Gaxos.ai Inc. Company Contact

Investor Relations

E: ir@gaxos.ai

T: 1-888-319-2499


FAQ

What is the size and price of Gaxos.ai's (GXAI) December 2024 offering?

Gaxos.ai's December 2024 offering consists of 1,346,669 shares at $3.00 per share, totaling $4 million.

What are the terms of GXAI's warrant offering in December 2024?

The warrants allow purchase of up to 1,346,669 shares at $3.00 per share, are exercisable upon issuance, and expire after three years.

When will Gaxos.ai's (GXAI) December 2024 offering close?

The offering is expected to close on or about December 30, 2024, subject to customary closing conditions.

How will Gaxos.ai (GXAI) use the proceeds from the December 2024 offering?

Gaxos.ai intends to use the net proceeds for working capital and other general corporate purposes.

Who is the placement agent for GXAI's December 2024 offering?

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

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