Gaxos.ai Inc. Announces Closing of $4 Million Registered Direct Offering Priced At-the-Market Under Nasdaq Rules
Rhea-AI Summary
Gaxos.ai Inc. (NASDAQ: GXAI) has successfully closed a registered direct offering of 1,346,669 shares of common stock at $3.00 per share, raising approximately $4 million in gross proceeds. The company also issued unregistered warrants in a concurrent private placement to purchase up to 1,346,669 shares at an exercise price of $3.00 per share, valid for three years. H.C. Wainwright & Co. served as the exclusive placement agent. The net proceeds will be used for working capital and general corporate purposes. This offering brings Gaxos's total gross proceeds raised in December 2024 to approximately $9 million.
Positive
- Raised $4 million in gross proceeds through share offering
- Total of $9 million raised in December 2024
- Warrants issued could provide additional future funding if exercised
Negative
- Share offering will cause dilution for existing shareholders
- Additional dilution possible if warrants are exercised
- Shares sold at market price without premium
News Market Reaction
On the day this news was published, GXAI declined 10.45%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Gaxos.ai Inc. raises approximately
Roseland, NJ, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Gaxos.ai Inc. (Nasdaq: GXAI), (“Gaxos” or the “Company”), a company developing artificial intelligence applications across various sectors, today announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules for the purchase and sale of an aggregate of 1,346,669 shares of its common stock at a purchase price of
H.C. Wainwright & Co. acted as the exclusive placement agent for the offering.
The aggregate gross proceeds to the Company from the offering were approximately
The shares of common stock (but not the warrants issued in the private placement or the shares of common stock underlying such warrants) were 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 were 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 have been filed with the SEC and are available on 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 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 were 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; its 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 use of proceeds from the offering. 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
How much did Gaxos.ai (GXAI) raise in its December 2024 registered direct offering?
What is the exercise price and duration of GXAI's warrants issued in December 2024?
How will Gaxos.ai (GXAI) use the proceeds from its December 2024 offering?
What is the total amount raised by GXAI in December 2024?
Who was the placement agent for GXAI's December 2024 offering?
