Global Mofy AI Limited Announces Closing of $4 Million Private Placement Financing

Rhea-AI Summary

Global Mofy AI (Nasdaq: GMM) has successfully closed a $4 million private placement financing on April 22, 2025. The company issued 2,030,460 Class A ordinary shares and an equal number of warrants, with each warrant allowing the purchase of one Class A Ordinary Share at an initial exercise price of $2.36 per share.

The warrants are immediately exercisable and have a five-year expiration term. The net proceeds will support general corporate purposes, including:

• Working capital
• Product development
• Investment in AI-powered platforms
• Development of the newly launched Gauss AI Lab

The company will file a registration statement with the SEC covering the resale of the Class A Ordinary Shares and shares issuable upon warrant exercise.

Positive

• Secured $4 million in new capital funding
• Immediate access to capital for AI platform development
• Five-year warrant coverage provides potential additional funding

Negative

• Potential dilution from issuance of 2,030,460 new shares
• Additional dilution risk from warrant exercises
• Warrant terms include price reset and adjustment provisions

Insights

Financial Analyst

GMM secured $4M financing through share/warrant issuance, balancing new capital against 11% shareholder dilution with potential for more.

Global Mofy's $4 million private placement provides crucial growth capital but comes with notable dilution implications. The company issued 2,030,460 Class A ordinary shares alongside an equal number of warrants. Based on the company's $36.1 million market cap, this share issuance represents approximately 11% dilution for existing shareholders.

The warrant structure creates potential for additional capital and dilution. Each warrant allows purchase of one Class A share at $2.36 per share, representing a 16.8% premium to the current $2.02 share price. If fully exercised, these warrants would generate an additional $4.8 million in capital while creating further dilution. The five-year exercise window gives the company extended access to this potential financing source.

The "subject to reset and adjustment" clause attached to the warrant exercise price deserves attention, as this provision could potentially alter the effective conversion terms. The broader financing structure aligns with typical capital raising mechanisms for growth-stage technology companies, providing necessary working capital while balancing the interests of new and existing investors.

AI Technology Expert

GMM's $4M capital injection will fuel AI platform development and Gauss AI Lab, addressing the resource-intensive needs of generative AI creation.

The $4 million capital infusion comes at a strategic time for Global Mofy's AI technology development. As a generative AI company focused on virtual content production and 3D digital assets, the company operates in a computational resource-intensive segment requiring continuous investment to maintain competitive positioning.

The specific allocation toward the newly launched Gauss AI Lab signals a targeted investment in advanced AI capabilities. In the generative AI space, specialized labs typically focus on developing proprietary algorithms, training models on custom datasets, and creating differentiated technological capabilities that can be commercialized across various digital content applications.

For companies developing 3D digital assets, maintaining technological parity requires substantial ongoing investment in both talent and computing infrastructure. This financing helps address these capital-intensive requirements, particularly crucial in the rapidly evolving generative AI landscape where models and capabilities advance at an accelerated pace.

BEIJING, April 22, 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 the successful closing of its previously announced private placement financing (the “Offering”) on April 22, 2025.

In connection with the closing of the Offering, the Company issued an aggregate of 2,030,460 Class A ordinary shares, par value $0.00003 per share (each, a “Class A Ordinary Share”), and 2,030,460 warrants (each, a “Warrant”), each to purchase one Class A Ordinary Share at an initial exercise price of $2.36 per share, subject to reset and adjustment, pursuant to the securities purchase agreement dated April 15, 2025, by and between the Company and the participating investors. The Warrants are exercisable upon issuance and will expire five years from the issuance date.

The Company received gross proceeds of approximately $4 million from the Offering, before deducting customary fees and expenses. The net proceeds from the Offering are expected to be used for general corporate purposes, including working capital, product development, and continued investment in the Company’s AI-powered platforms, including its newly launched Gauss AI Lab.

“The successful closing of this financing further strengthens our ability to deliver innovation across our AI-driven technology platforms,” said Haogang Yang, CEO of Global Mofy. “This capital will support our strategic growth initiatives and accelerate development efforts as we continue to advance next-generation digital content solutions and expand our position in the rapidly evolving digital ecosystem.”

The securities described above have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and 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. The Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission (SEC) covering the resale of the Class A Ordinary Shares and Class A Ordinary Shares issuable upon the exercise of the Warrants issued in this Offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, 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 registration or qualification under the securities laws of such state or 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 are the key terms of Global Mofy AI's (GMM) April 2025 private placement?

GMM raised $4 million by issuing 2,030,460 Class A ordinary shares and warrants, with warrants exercisable at $2.36 per share for five years.

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

The proceeds will fund working capital, product development, and investments in AI-powered platforms, including the new Gauss AI Lab.

What is the exercise price and duration of GMM's April 2025 warrants?

The warrants have an initial exercise price of $2.36 per share and expire five years from the April 22, 2025 issuance date.

Are the shares and warrants from GMM's private placement registered under the Securities Act?

No, but GMM will file a registration statement with the SEC for the resale of shares and warrant shares.