STOCK TITAN

Global Mofy AI Limited Announces $4 Million Private Placement Financing

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
private placement AI

Global Mofy AI (GMM) has announced a $4 million private placement financing through securities purchase agreements. The company will issue 2,030,460 Class A ordinary shares and an equal number of warrants at a combined price of $1.97 per share and warrant, representing 101% of the Nasdaq Minimum Price.

Each warrant will be immediately exercisable at $2.36 per share and will expire in five years. The net proceeds will support general corporate purposes, including working capital, product development, and expansion of AI-powered technology platforms, particularly investment in the recently announced Gauss AI Lab.

Global Mofy AI (GMM) ha annunciato un finanziamento privato da 4 milioni di dollari attraverso accordi di acquisto di titoli. La società emetterà 2.030.460 azioni ordinarie di Classe A e un numero pari di warrant a un prezzo combinato di 1,97 dollari per azione e warrant, rappresentando il 101% del Prezzo Minimo Nasdaq.

Ogni warrant sarà immediatamente esercitabile a 2,36 dollari per azione e scadrà entro cinque anni. I proventi netti saranno utilizzati per scopi aziendali generali, inclusi capitale circolante, sviluppo prodotto e l'espansione di piattaforme tecnologiche basate sull'intelligenza artificiale, in particolare per investimenti nel recentemente annunciato Gauss AI Lab.

Global Mofy AI (GMM) ha anunciado una financiación privada de 4 millones de dólares mediante acuerdos de compra de valores. La compañía emitirá 2.030.460 acciones ordinarias Clase A y un número igual de warrants a un precio combinado de 1,97 dólares por acción y warrant, representando el 101% del Precio Mínimo de Nasdaq.

Cada warrant será ejercitable inmediatamente a 2,36 dólares por acción y expirará en cinco años. Los ingresos netos se destinarán a propósitos corporativos generales, incluyendo capital de trabajo, desarrollo de productos y expansión de plataformas tecnológicas impulsadas por IA, especialmente inversión en el recientemente anunciado Gauss AI Lab.

Global Mofy AI (GMM)는 증권 매매 계약을 통해 400만 달러 규모의 사모 자금 조달을 발표했습니다. 회사는 2,030,460주 클래스 A 보통주와 동일한 수의 워런트를 주당 1.97달러의 결합 가격으로 발행하며, 이는 나스닥 최저 가격의 101%에 해당합니다.

각 워런트는 주당 2.36달러에 즉시 행사 가능하며, 만료 기간은 5년입니다. 순수익은 운전자본, 제품 개발, AI 기반 기술 플랫폼 확장 등 일반 기업 목적에 사용되며, 특히 최근 발표된 Gauss AI Lab에 대한 투자가 포함됩니다.

Global Mofy AI (GMM) a annoncé un financement privé de 4 millions de dollars via des accords d'achat de titres. La société émettra 2 030 460 actions ordinaires de classe A ainsi qu'un nombre égal de bons de souscription, au prix combiné de 1,97 dollar par action et bon, représentant 101 % du prix minimum Nasdaq.

Chaque bon sera immédiatement exerçable à 2,36 dollars par action et expirera dans cinq ans. Les fonds nets serviront à des fins générales d'entreprise, notamment le fonds de roulement, le développement de produits et l'expansion des plateformes technologiques alimentées par l'IA, en particulier l'investissement dans le Gauss AI Lab récemment annoncé.

Global Mofy AI (GMM) hat eine Privatplatzierungsfinanzierung in Höhe von 4 Millionen US-Dollar durch Wertpapierkaufvereinbarungen angekündigt. Das Unternehmen wird 2.030.460 Stammaktien der Klasse A und eine gleiche Anzahl von Warrants zu einem kombinierten Preis von 1,97 US-Dollar pro Aktie und Warrant ausgeben, was 101 % des Nasdaq-Mindestpreises entspricht.

Jeder Warrant ist sofort ausübbar zu 2,36 US-Dollar pro Aktie und läuft in fünf Jahren ab. Die Nettoerlöse werden für allgemeine Unternehmenszwecke verwendet, einschließlich Betriebskapital, Produktentwicklung und Ausbau KI-gestützter Technologieplattformen, insbesondere Investitionen in das kürzlich angekündigte Gauss AI Lab.

Positive
  • Secured $4 million in additional funding
  • Warrants priced at 20% premium to share price ($2.36 vs $1.97)
  • Investment supports expansion of AI technology platforms and Gauss AI Lab
Negative
  • Potential dilution from issuance of 2,030,460 new shares
  • Additional dilution risk from warrant exercise
  • Shares sold at near-minimum Nasdaq price, indicating weak pricing power

Insights

Global Mofy AI 's $4 million private placement represents a significant capital infusion for a company with a $36.3 million market capitalization. The financing structure offers several positive indicators worth noting.

The placement price of $1.97 per share sits at a 101% premium to Nasdaq's minimum price requirement, indicating reasonable investor confidence despite challenging market conditions for smaller tech companies. This pricing avoids the dilutive discount often seen in similar financings.

The issuance of 2,030,460 new shares represents approximately 11% dilution to existing shareholders based on current market metrics. While dilution is always a consideration, this appears to be a reasonable exchange for strengthening the balance sheet.

The included warrants ($2.36 exercise price, 5-year term) provide potential additional runway through future exercises while setting a higher valuation target. The 19.3% premium on these warrants compared to the current placement suggests a pathway to potential upside for both new investors and the company.

Most importantly, the capital allocation toward product development, working capital, and expansion of AI capabilities—particularly the Gauss AI Lab—demonstrates commitment to technological advancement in generative AI and 3D digital assets. This focus on reinforcing technological capabilities is essential for maintaining competitive positioning in the rapidly evolving AI content creation market.

BEIJING, April 16, 2025 (GLOBE NEWSWIRE) -- Global Mofy AI Limited (the “Company” or “Global Mofy”) (Nasdaq: GMM), a generative AI-driven technology solutions provider engaged in virtual content production and the development of 3D digital assets for use in the broader digital content industry, today announced that it has entered into securities purchase agreements (the “SPAs”) with certain investors for a private placement of its securities for gross proceeds of approximately US$4 million (the “Offering”).

Pursuant to the SPAs, the Company will issue and sell up to 2,030,460 Class A ordinary shares, par value US$0.00003 per share (the “Class A Ordinary Shares”), and 2,030,460 warrants, each to initially purchase one Class A Ordinary Share (the “Warrant”), at a combined purchase price of US$1.97 per Class A Ordinary Share and Warrant. This price represents 101% of the Nasdaq Minimum Price, as defined under Nasdaq Listing Rule 5635(d), based on the Nasdaq Official Closing Price (NOCP) on April 14, 2025.

Each Warrant will have an initial exercise price of US$2.36 per share, will be immediately exercisable upon issuance, and will expire five years from the date of issuance. The exercise price and the number of Class A Ordinary Shares issuable upon exercise of the Warrants are subject to adjustment pursuant to the terms of the Warrants.

The Company intends to use the net proceeds from the Offering for general corporate purposes, including working capital, product development, and the continued expansion of its AI-powered technology platforms — including investment in its recently announced Gauss AI Lab.

The securities described above have not been registered under the Securities Act of 1933, as amended. Accordingly, these securities 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. Global Mofy has agreed to file a registration statement with the Securities and Exchange Commission (SEC) registering the resale of the Class A Ordinary Shares and Class A Ordinary Shares issuable upon the exercise of the Warrants.

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

About Global Mofy AI Limited

Global Mofy AI Limited (Nasdaq: GMM) is a generative AI-driven technology solutions provider engaged in virtual content production, and the development of digital assets for the digital content industry. Utilizing its proprietary “Mofy Lab” technology platform, which consists of interactive 3D and artificial intelligence (“AI”) technology, the Company creates high-definition virtual versions of a wide range of physical world objects in 3D ranging from characters, objects to scenes and more. The digital assets can be used in different applications, including movies, TV series, AR/VR, animation, advertising, gaming, and more. Global Mofy is one of the leading digital asset banks in China, which consists of more than 100,000 high-precision 3D digital assets. For more information, please visit www.globalmofy.cn/ or ir.globalmofy.cn.

Forward-Looking Statement

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company’s statements regarding the expected trading of its Ordinary Shares on the Nasdaq Capital Market and the closing of the Offering. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Global Mofy AI Ltd.
Investor Relations Department
ir@mof-vfx.com


FAQ

What is the price per share in GMM's private placement offering?

The combined purchase price is $1.97 per Class A Ordinary Share and Warrant, representing 101% of the Nasdaq Minimum Price.

How many shares and warrants will GMM issue in the private placement?

GMM will issue 2,030,460 Class A ordinary shares and 2,030,460 warrants.

What is the exercise price and duration of GMM's warrants?

The warrants have an initial exercise price of $2.36 per share and will expire five years from issuance.

How will GMM use the proceeds from the $4 million private placement?

The proceeds will fund general corporate purposes, working capital, product development, and AI technology platform expansion, including investment in the Gauss AI Lab.
Global Mofy AI Ltd

NASDAQ:GMM

GMM Rankings

GMM Latest News

GMM Stock Data

41.88M
16.52M
6.02%
0.05%
0.31%
Information Technology Services
Technology
Link
China
Beijing