GD Culture Group initiates $10 million at-the-market offering

NEW YORK - GD Culture Group Limited (NASDAQ:GDC), along with its subsidiary AI Catalysis Corp., has announced an at-the-market (ATM) issuance sales agreement with Univest Securities, LLC. This arrangement allows GD Culture Group, currently valued at $12.73 million in market capitalization, to issue and sell up to $10 million worth of common stock from time to time, with sales prices aligning with market values at the time of each transaction. According to InvestingPro data, the company’s stock has shown significant volatility, declining nearly 40% year-to-date.

The company has stated that the proceeds from this ATM program are intended to support general working capital and corporate purposes. This funding initiative comes as InvestingPro analysis indicates the company is quickly burning through cash, with a negative free cash flow yield. While the timing and amount of stock sales will be at the discretion of GD Culture Group, the company maintains a current ratio of 2.63, suggesting adequate liquid assets to meet short-term obligations. There is no guarantee that any shares will be sold under this agreement, and the sales are subject to market conditions and other factors.

The shares in question have been registered with the U.S. Securities and Exchange Commission (SEC), with the offering made possible through a shelf registration statement filed on May 6, 2024, and declared effective on August 20, 2024. A final prospectus supplement and accompanying prospectus will be filed with the SEC, providing further details of the offering.

GD Culture Group, a Nevada-based company, is primarily engaged in business through AI Catalysis Corp. and Shanghai Xianzhui Technology Co, Ltd. The company is making strides to enter the livestreaming market focused on e-commerce via AI Catalysis, though InvestingPro reports show the company is not currently profitable, with an EBITDA of -$17.67 million in the last twelve months. GD Culture Group’s operations encompass AI-driven digital human technology and live-streaming e-commerce business. InvestingPro subscribers have access to 12 additional key insights about GDC’s financial health and market position.

Investors and media seeking more information about GD Culture Group Limited or this specific offering can direct inquiries to the company’s Investor Relations Department or Ascent Investor Relations LLC.

This press release statement serves as the basis for the facts reported herein.

In other recent news, GD Culture Group Limited and its subsidiary, AI Catalysis Corp., have decided to terminate their online livestreaming gaming business. This move is part of a strategic realignment to focus on sectors that promise long-term growth and better align with the company’s vision. The gaming business, launched 18 months ago, will continue to maintain its existing games and content without future updates, reflecting the company’s aim to optimize resource allocation.

Chairman and CEO Xiaojian Wang stated that this decision is part of a broader strategy to prioritize resources and efforts on products and initiatives that align with long-term vision and customer needs. GD Culture Group is now shifting its focus towards live-streaming e-commerce and AI-driven digital human technology. However, the company has not disclosed the financial impact of discontinuing the gaming livestream business or detailed plans for its e-commerce and digital human technology initiatives. These are recent developments, and investors are advised to visit the company’s website for further updates.

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