STOCK TITAN Inc. Announces a 1:12 Reverse Stock Split Effective Pre-Market Opening on March 8, 2024

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Rhea-AI Summary Inc. (NASDAQ: GXAI) announces a 1-for-12 reverse stock split effective March 7, 2024, consolidating every 12 shares into 1 share. The Company's common stock will trade on a post-split basis under the same symbol 'GXAI' on The Nasdaq Capital Market. The reverse split aims to streamline the share structure, with approximately 981,523 shares outstanding post-split.
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The announcement of Inc.'s reverse stock split is a strategic move that can have a variety of implications for the company and its shareholders. Generally, a reverse split is employed by companies aiming to boost their stock price, often to meet exchange listing requirements or to attract a different profile of investors. In this case, the 1-for-12 ratio indicates a significant consolidation of shares, which will reduce the total number of shares outstanding from approximately 11.8 million to under 1 million. This could potentially increase the stock's price per share, making it appear more valuable on a per-share basis.

However, it is important to note that while the optics of the stock price may improve, the company's market capitalization remains unchanged. Investors should be aware that the intrinsic value of the company does not increase as a result of a reverse stock split. The long-term impact will largely depend on the company's performance post-split. If Inc. can leverage the higher share price to attract institutional investors or use it as a springboard for future growth, the reverse split could be viewed positively. Conversely, if the company does not demonstrate improved financials or growth prospects, the reverse split may be seen as a cosmetic change, with a risk of the stock price declining over time.

From a market research perspective, the reverse stock split by Inc. can be indicative of the company's strategic positioning within the AI sector. Reverse splits can be a red flag to some investors, suggesting that the company had previously been facing challenges such as a declining share price or the threat of delisting. However, when executed as part of a well-considered strategy, they can also be interpreted as a company taking proactive steps to reposition itself in the market.

For Inc., the consolidation of shares may be an attempt to align with industry peers that have higher share prices and a more concentrated shareholder base. It could also be a part of a broader strategy to enhance the company's appeal to certain investors, such as institutional investors, who may prefer to invest in stocks with higher prices per share. The reaction of the market to this reverse split will be telling; a positive reception could indicate confidence in the company's future, while a negative response might suggest skepticism about the company's ability to improve its fundamentals.

From a legal standpoint, the execution of a reverse stock split involves several regulatory considerations. Inc. must comply with NASDAQ's listing requirements, which include maintaining a minimum bid price. If the company's share price was perilously close to this threshold, the reverse split could be a measure to prevent delisting. It is also essential for the company to adhere to securities laws pertaining to disclosure and shareholder rights. Shareholders, for instance, are entitled to a fair process, which includes the conversion of fractional shares to whole shares.

Additionally, the change in CUSIP number, a unique identifier for the company's common stock, is a standard procedure following such corporate actions. It is crucial for the company to ensure that all procedural requirements are met to avoid legal complications. These actions must be communicated transparently to shareholders and the market to maintain trust and comply with regulations. The legal intricacies of a reverse stock split are significant, as they ensure the legitimacy and smooth execution of the process.

Roseland, NJ, March 06, 2024 (GLOBE NEWSWIRE) -- Inc. (NASDAQ: GXAI), (“Gaxos” or the “Company”), a company developing artificial intelligence applications across various sectors, today announced that it will effect a 1-for-12 reverse split of its issued and outstanding common stock effective as of 4:01pm Eastern Time on March 7, 2024. Commencing with the opening of trading on The Nasdaq Capital Market on March 8, 2024, the Company’s common stock will trade on a post-split basis under the same trading symbol, “GXAI”.

As a result of the reverse stock split, the CUSIP number for the Company’s common stock will be 62911P 300. As a result of the reverse stock split, every 12 shares of issued and outstanding common stock will be exchanged for 1 share of common stock, with any fractional shares being rounded up to the next higher whole share. Immediately after the reverse stock split becomes effective, the Company will have approximately 981,523 shares of common stock issued and outstanding.

About Inc. isn't just developing applications; it's redefining the human-AI relationship. Our offerings span 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. 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. 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. Inc. Company Contact

Investor Relations
T: 1-888-319-2499 Inc. (GXAI) announced a 1-for-12 reverse stock split of its issued and outstanding common stock effective March 7, 2024.

The reverse stock split for Inc. (GXAI) will be effective as of 4:01pm Eastern Time on March 7, 2024.

The reverse stock split by Inc. (GXAI) aims to consolidate every 12 shares of issued and outstanding common stock into 1 share to streamline the share structure.

After the reverse stock split, Inc. (GXAI) will have approximately 981,523 shares of common stock issued and outstanding.


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