Global Mofy Metaverse Limited Announces the Closing of $10 Million Follow-on Offering

Rhea-AI Summary

Global Mofy Metaverse Limited (NASDAQ: GMM) closed a $10 million follow-on offering of ordinary shares and accompanying warrants at a price of $7.25 per share. The net proceeds to the company from this offering are approximately $8.9 million, after deducting placement agent fees and other estimated offering expenses. The offering will help facilitate the company's continued global business expansion and R&D of core technologies of the metaverse industry.

Insights

Financial Analyst

The closure of Global Mofy Metaverse's follow-on offering represents a significant capital influx, which is expected to bolster the company's financial position. With net proceeds of approximately $8.9 million, the company is poised to enhance its business operations. This strategic move should be assessed in the context of the company's current cash burn rate, balance sheet strength and the potential for dilution of existing shareholders due to the issuance of new shares and warrants. The offering price of $7.25 per share, along with the warrant exercise price of $8.00, provides investors with a tangible reference to the company's valuation in the eyes of institutional investors. It is crucial to consider the impact of these new securities on the company's earnings per share (EPS) and how the exercise of warrants might affect the stock's supply-demand dynamics in the future.

Market Research Analyst

The metaverse industry is rapidly evolving, with significant investments being funneled into research and development (R&D) and global business expansion. Global Mofy Metaverse's recent capital raise indicates a robust interest from institutional investors, which could be perceived as a vote of confidence in the company's growth trajectory. However, it is important to evaluate the competitive landscape and the company's market positioning. The effectiveness of the company's digital marketing strategies, virtual content production and digital assets development will play a crucial role in its ability to capitalize on the burgeoning metaverse market. Investors should monitor the company's progress in R&D and the subsequent commercialization of its technologies, as these factors will be critical in determining its long-term success and market share.

Technology Industry Analyst

The metaverse sector is a cutting-edge field that is expected to experience exponential growth. Global Mofy Metaverse's focus on core technologies within this space suggests potential for pioneering advancements. The additional funds aimed at R&D could lead to innovative solutions that may disrupt the market. It is imperative to analyze the company's intellectual property portfolio, the technical viability of its proposed solutions and the roadmap for development and deployment. The long-term implications of these technologies on user engagement, monetization strategies and partnerships with other entities in the ecosystem will be key determinants of the company's performance within the industry.

Beijing, CHINA, Jan. 03, 2024 (GLOBE NEWSWIRE) -- Global Mofy Metaverse Limited (the "Company" or “Global Mofy Metaverse”) (NASDAQ: GMM), a technology solutions provider engaged in virtual content production, digital marketing, and digital assets development for the metaverse industry, today announced that it closed its previously announced follow-on offering of $10 million of ordinary shares, par value $0.000002 per share (the "Ordinary Shares") and accompanying warrants at a price of $7.25 per share and accompanying warrants. In this institutional placement, the Company issued a total of 1,379,313 Ordinary Shares and common warrants ("Common Warrants") for the purchase of up to 2,068,970 Ordinary Shares at an exercise price of $8.00 per share to two institutional investors, which Common Warrants have a term of three years from the date of issuance. The net proceeds to the Company from this offering are approximately $8.9 million, after deducting placement agent fees and other estimated offering expenses.

FT Global Capital Inc. acted as the lead placement agent and Prime Number Capital LLC acted as placement agent for the transaction. Ortoli Rosenstadt LLP acted as U.S. counsel to the Company and ArentFox Schiff LLP acted as U.S. securities counsel to the placement agents, in connection with the Offering.

“We are pleased to close this offering, particularly given the current macroeconomic backdrop. We appreciate the continued support and market recognition as we execute our business plan” said Mr. Yang Haogang, Chairman and CEO of Global Mofy Metaverse. “The proceeds provided by this offering will help facilitate our continued global business expansion and R&D of core technologies of the metaverse industry.”

These securities are being offered through a prospectus contained in the Company's effective registration statement on Form F-1 (SEC Filing No. 333-276277) which was declared effective by the Securities and Exchange Commission (the "SEC") on December 28, 2023. A final prospectus related to the offering was filed with the SEC and may be obtained via the SEC's website at www.sec.gov. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

About Global Mofy Metaverse Limited

Headquartered at Beijing, Global Mofy Metaverse Limited is a technology solutions provider engaged in virtual content production, digital marketing, and digital assets development for the metaverse industry. Utilizing its proprietary “Mofy Lab” technology platform which consists of cutting-edge three-dimensional (“3D”) rebuilt technology and AI interactive technology, the Company creates 3D high definition virtual version of a wide range of physical world objects such as characters, objects and scenes which can be used in different applications such as movies, TV series, AR/VR, animation, adverting and gaming. Global Mofy Metaverse is one of the leading digital asset banks in China, which consists of more than 7,000 high precision 3D digital assets. With its strong technology platform and industry track record, Global Mofy Metaverse is able to attract high-profile customers and earn repeat business. For more information, please visit: www.globalmofy.cn/, 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 use of proceeds 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:
Company
Global Mofy Metaverse Ltd.
Investor Relations Department
Email: ir@mof-vfx.com

Investor Relations
WFS Investor Relations Inc.
Janice Wang, Managing Partner
Email: services@wealthfsllc.com
Phone: +86 13811768599
+1 628 283 9214

FAQ

What was the amount of the follow-on offering closed by Global Mofy Metaverse Limited?

Global Mofy Metaverse Limited closed a $10 million follow-on offering of ordinary shares and accompanying warrants.

At what price were the ordinary shares and accompanying warrants sold?

The ordinary shares and accompanying warrants were sold at a price of $7.25 per share.

What are the net proceeds to the company from this offering?

The net proceeds to the company from this offering are approximately $8.9 million, after deducting placement agent fees and other estimated offering expenses.

What will the proceeds from the offering be used for?

The proceeds from the offering will help facilitate the company's continued global business expansion and R&D of core technologies of the metaverse industry.