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BEIJING - Global Mofy AI Limited (NASDAQ:GMM), a provider of generative AI-driven technology solutions, announced a private placement of securities totaling approximately $4 million. The Beijing-based company, specializing in virtual content production and 3D digital assets, will issue over 2 million Class A ordinary shares and an equal number of warrants, with the latter exercisable immediately upon issuance. The company, currently valued at $34.69 million, has demonstrated strong financial performance with revenue of $41.36 million and impressive growth of 54% in the last twelve months. According to InvestingPro analysis, GMM maintains a healthy balance sheet with more cash than debt.
The combined purchase price for each share and accompanying warrant is set at $1.97, slightly above the Nasdaq Minimum Price based on the Nasdaq Official Closing Price on April 14, 2025. The warrants, with an exercise price of $2.36 per share, will expire five years from the issuance date and are adjustable in terms of exercise price and the number of shares issuable. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with 14 additional key insights available to subscribers, including detailed valuation metrics and growth prospects.
Global Mofy AI plans to allocate the net proceeds from this offering towards general corporate purposes. These include bolstering working capital, further developing products, and expanding its AI-powered technology platforms. A significant investment is earmarked for the Gauss AI Lab, a recently announced initiative. The company’s strong financial health is reflected in its current ratio of 1.42 and robust gross profit margin of 50.3%, suggesting efficient operational management. For detailed financial analysis and real-time updates, investors can access comprehensive metrics through InvestingPro.
The securities offered have not been registered under the Securities Act of 1933 and, therefore, may not be sold in the United States absent registration or an exemption from registration requirements. Global Mofy AI has committed to filing a registration statement with the SEC for the resale of the Class A Ordinary Shares and shares issuable upon exercising the warrants.
This press release should not be construed as an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Global Mofy AI is known for its proprietary Mofy Lab technology platform, which produces high-definition virtual versions of physical objects for various applications across the digital content industry. With one of China’s largest digital asset banks, the company boasts a portfolio exceeding 100,000 high-precision 3D digital assets.
This news article is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance and could differ materially from current expectations.
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