GD Culture Group announces $1 million private placement

NEW YORK - GD Culture Group Limited (NASDAQ:GDC), along with its subsidiary AI Catalysis Corp., disclosed on Monday that it has agreed to a private placement of shares valued at approximately $1 million. The deal involves the sale of 1,115,600 shares of common stock at a price of roughly $0.896 per share. The micro-cap company, currently valued at $20.1 million, has been facing financial challenges according to InvestingPro data, with revenue declining 200% in the last twelve months.

The anticipated gross proceeds from the private placement are expected to be around $1 million, with the transaction set to conclude today, subject to customary closing conditions. While the company maintains a healthy current ratio of 2.63, InvestingPro analysis indicates the company is quickly burning through cash. Univest Securities, LLC is serving as the exclusive placement agent for this offering.

The shares are being offered to accredited investors under an exemption from the registration requirements of the Securities Act of 1933, pursuant to Section 4(a)(2) and Rule 506(b) of Regulation D. GD Culture Group has committed to file a registration statement for the resale of the shares within 60 days from the agreement date.

GD Culture Group, a Nevada-based company, operates primarily through AI Catalysis Corp. and Shanghai Xianzhui Technology Co, Ltd. The company is positioning itself to enter the live streaming market, focusing on e-commerce through AI Catalysis, which was incorporated in May 2023. The company’s core business focuses on AI-driven digital human technology and live-streaming e-commerce. InvestingPro data reveals the company’s overall financial health score as WEAK, with 10+ additional insights available to subscribers.

This press release does not constitute an offer to sell these securities, nor a solicitation of an offer to buy in any jurisdiction where such an offer or sale would be unlawful before registration or qualification under the securities laws of that jurisdiction.

Investors can access the prospectus supplement related to the registered direct offering and the accompanying base prospectus at the SEC’s website.

The information provided in this article is based on a press release statement from GD Culture Group Limited.

In other recent news, GD Culture Group Limited has initiated a $10 million at-the-market offering in collaboration with Univest Securities, LLC. This arrangement allows the company to issue and sell common stock as needed, with proceeds intended for general corporate purposes and working capital. The shares have been registered with the U.S. Securities and Exchange Commission, and a final prospectus will be filed to provide further details. Additionally, GD Culture Group has announced the termination of its online livestreaming gaming business. This strategic decision is part of a shift to focus on live-streaming e-commerce and AI-driven digital human technology, aligning with the company’s long-term growth vision. The company has not disclosed the financial impact of this move or specifics about future initiatives in these new focus areas. Chairman and CEO Xiaojian Wang expressed gratitude to the community that supported their gaming platform. Investors are encouraged to stay informed through the company’s website for any further updates.

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