Global Mofy AI Limited Announces Effective Date of Reverse Stock Split
Global Mofy AI (GMM) announced a 1-for-15 reverse stock split effective November 26, 2024. The split will reduce outstanding shares from approximately 42.2 million to 2.8 million. The company's Class A ordinary shares will continue trading under 'GMM' with a new CUSIP number G3937M114. The move aims to comply with Nasdaq's minimum bid price requirement of $1.00 per share. The split adjusts the par value to $0.00003 per share, with outstanding warrants and options being proportionally adjusted. Fractional shares will be rounded up to the nearest whole share.
Global Mofy AI (GMM) ha annunciato uno split azionario inverso 1 per 15 che entrerà in vigore il 26 novembre 2024. Questo split ridurrà le azioni in circolazione da circa 42,2 milioni a 2,8 milioni. Le azioni ordinarie di classe A continueranno a essere scambiate sotto il simbolo 'GMM' con un nuovo numero CUSIP G3937M114. Questa mossa mira a rispettare il requisito del prezzo minimo di offerta di Nasdaq di $1,00 per azione. Lo split adeguerà il valore nominale a $0,00003 per azione, con strumenti di diritto e opzioni in circolazione proporzionalmente adeguati. Le azioni frazionarie verranno arrotondate all'azione intera più vicina.
Global Mofy AI (GMM) anunció una división de acciones inversa de 1 por 15 efectiva el 26 de noviembre de 2024. Esta división reducirá las acciones en circulación de aproximadamente 42,2 millones a 2,8 millones. Las acciones ordinarias de clase A continuarán cotizando bajo 'GMM' con un nuevo número CUSIP G3937M114. Este movimiento tiene como objetivo cumplir con el requisito de precio mínimo de oferta de Nasdaq de $1,00 por acción. La división ajusta el valor nominal a $0,00003 por acción, y se ajustarán proporcionalmente las opciones y garantías en circulación. Las acciones fraccionarias se redondearán a la acción entera más cercana.
Global Mofy AI (GMM)는 2024년 11월 26일부터 1대 15 비율의 액면분할을 발표하였습니다. 이 분할로 인해 유통 주식 수는 약 4,220만 주에서 280만 주로 줄어듭니다. 회사의 클래스 A 보통주는 'GMM'이라는 기호로 계속 거래되며 새로운 CUSIP 번호는 G3937M114입니다. 이 조치는 나스닥의 최소 입찰가 요구사항인 주당 $1.00을 충족하기 위한 것입니다. 분할로 인해 주당 액면가가 $0.00003으로 조정되며, 기존의 워런트와 옵션도 비례적으로 조정됩니다. 분할된 주식은 가장 가까운 정수 주식으로 반올림됩니다.
Global Mofy AI (GMM) a annoncé une division inversée des actions au ratio de 1 pour 15, effective le 26 novembre 2024. Cette division réduira le nombre d'actions en circulation d'environ 42,2 millions à 2,8 millions. Les actions ordinaires de classe A continueront d'être négociées sous 'GMM' avec un nouveau numéro CUSIP G3937M114. Cette mesure vise à respecter l'exigence de prix d'offre minimale de Nasdaq de 1,00 $ par action. La division ajuste la valeur nominale à 0,00003 $ par action, les bons de souscription et options en circulation étant ajustés proportionnellement. Les actions fractionnaires seront arrondies à l'action entière la plus proche.
Global Mofy AI (GMM) hat einen Rückwärtssplit im Verhältnis 1 zu 15 angekündigt, der am 26. November 2024 in Kraft tritt. Dieser Split reduziert die umlaufenden Aktien von etwa 42,2 Millionen auf 2,8 Millionen. Die Stammaktien der Klasse A werden weiterhin unter 'GMM' gehandelt, mit einer neuen CUSIP-Nummer G3937M114. Dieser Schritt zielt darauf ab, die Mindestgebotsanforderung von Nasdaq von $1,00 pro Aktie zu erfüllen. Der Split passt den Nennwert auf $0,00003 pro Aktie an, wobei vorhandene Warrants und Optionen proportional angepasst werden. Bruchteile von Aktien werden auf die nächste ganze Aktie aufgerundet.
- None.
- Implementation of reverse stock split indicates struggle to maintain Nasdaq listing requirements
- Stock price has fallen below $1.00, triggering compliance issues with Nasdaq
Insights
The 1-for-15 reverse stock split is a critical financial maneuver aimed at maintaining Nasdaq listing compliance. This consolidation will reduce outstanding shares from 42.2 million to 2.8 million, artificially boosting the share price by 15x. While this doesn't change GMM's market value, it's concerning that such measures are needed to meet the
The rounding up of fractional shares and proportional adjustment of warrants and options maintains relative ownership positions. However, reverse splits often signal underlying financial distress and can lead to increased volatility. Historical patterns show companies implementing reverse splits frequently underperform the market, as this move may be perceived as a red flag by investors.
BEIJING, Nov. 22, 2024 (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 resolved to effect a reverse stock split of the Company’s ordinary shares, with the split ratio set at 1-for-15. The reverse stock split was approved by the Company’s shareholders at a special meeting held on November 1, 2024. Global Mofy’s Class A ordinary shares will begin trading on an adjusted basis, reflecting the reverse stock split, on November 26, 2024, under the existing ticker symbol “GMM.” The new CUSIP number for the Company’s Class A ordinary shares will be G3937M114.
Upon the effectiveness of the reverse stock split, every fifteen shares of the Company’s issued and outstanding Class A ordinary shares as of the effective date will automatically be combined into one Class A ordinary share. This adjustment will reduce the total number of outstanding ordinary shares of Global Mofy from approximately 42.2 million to approximately 2.8 million.
In conjunction with the reverse stock split, the Company also amended its Memorandum of Association to proportionately reduce the number of authorized shares for issuance and to adjust the par value of the post-reverse stock split ordinary shares to
The reverse stock split is part of the Company’s efforts to bring its stock into compliance with the minimum bid price requirement for maintaining the listing of its Common Stock on the Nasdaq Capital Market. Nasdaq requires listed companies to maintain a minimum bid price of at least
In addition, outstanding warrants and options will be adjusted on a proportionate basis or pursuant to the terms of such warrants and options in accordance with the reverse stock split. No fractional shares will be issued; instead, shareholders who would otherwise be entitled to a fractional share will have their entitlement rounded up to the nearest whole share.
Further details regarding the reverse stock split and the associated changes to the Company’s share capital can be found in Global Mofy’s notice of special meeting, filed with the Securities and Exchange Commission on October 18, 2024.
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 Metaverse 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
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