Gaxos.ai Inc. Raises $3.24 Million Through Warrant Exercise and Issues New Warrants

Gaxos.ai Inc. Announces Exercise of Warrants for $3.24 Million Gross Proceeds

, (GLOBE NEWSWIRE) -- Gaxos.ai Inc. (NASDAQ: GXAI), ("Gaxos" or the "Company"), a company developing artificial intelligence applications across various sectors, today announced that it has entered into a definitive agreement for the exercise of certain existing warrants to purchase an aggregate of 1,256,734 shares of its common stock originally issued in and having an original exercise price of per share, at a reduced exercise price of per share. The issuance and sale of the shares of common stock issuable upon exercise of the existing warrants is registered pursuant to an effective registration statement on Form S-3 (File No. 333-278513). is acting as the exclusive placement agent for the offering. In consideration for the immediate exercise of the existing warrants for cash, the Company will issue new unregistered warrants to purchase up to an aggregate of 2,513,468 shares of common stock (the "new warrants"). The new warrants will be immediately exercisable at an exercise price of per share. New warrants to purchase 1,256,734 shares of common stock will have a term of five and one-half years from the issuance date, and new warrants to purchase 1,256,734 shares of common stock will have a short term of twenty-four months from the issuance date. The offering is expected to close on or about , subject to satisfaction of customary closing conditions. The gross proceeds to the Company from the exercise of the existing warrants and the issuance of new warrants are expected to be approximately , prior to deducting placement agent fees and offering expenses payable by the Company. The Company intends to use the net proceeds from the offering to Gaxos intends to use the net proceeds from the offering for working capital and other general corporate purposes. The new warrants described above are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and Regulation D promulgated thereunder and, along with the shares of common stock issuable upon exercise of the new warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the new warrants issued in the private placement and the shares of common stock underlying the new warrants may not be offered or sold in except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. The Company has agreed to file a registration statement with the covering the resale of the shares of common stock issuable upon the exercise of the new warrants. This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. About Gaxos.ai Inc. Gaxos.ai isn't just developing applications; it's aim is to redefine the human-AI relationship. Our offerings are being expanded to include health and wellness, as well as gaming. We're committed to addressing health, longevity, and entertainment, through AI solutions. Forward-Looking Statements All statements other than statements of historical fact in this announcement are forward-looking statements that involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs and are subject to market and other conditions. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Forward-looking statements include statements regarding, the ability of the Company to consummation of the offering, the satisfaction of the closing conditions of the offering and the use of proceeds therefrom. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's filings with the .

Gaxos.ai reduces warrant exercise price, issues new warrants By Investing.com

ROSELAND, NJ - Gaxos.ai Inc. (NASDAQ: GXAI), a developer of artificial intelligence applications, announced today the reduction of the exercise price for certain existing warrants and the issuance of new warrants. The company has entered into a definitive agreement, which allows the exercise of existing warrants for 1,256,734 shares at a reduced price of $2.58 per share, down from the original $5.50. The offering, which is expected to close on September 23, 2024, involves the immediate cash exercise of these warrants and the concurrent issuance of new unregistered warrants to purchase up to 2,513,468 shares of common stock. These new warrants will be exercisable at a price of $2.33 per share, with varying terms of five and a half years, and twenty-four months. H.C. Wainwright & Co. is serving as the exclusive placement agent for this transaction. The gross proceeds from the exercise of the existing warrants and the issuance of new ones are anticipated to be approximately $3.24 million before fees and offering expenses. The company plans to allocate the net proceeds for working capital and other general corporate purposes. The new warrants and the shares of common stock issuable upon their exercise have not been registered under the Securities Act of 1933, as amended, and are being offered in a private placement under Section 4(a)(2) and Regulation D. Gaxos.ai has also committed to filing a registration statement with the Securities and Exchange Commission for the resale of the shares issuable upon the exercise of the new warrants. This press release is not an offer to sell these securities and there will be no sale of these securities in any jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The company's expansion includes AI applications in health and wellness as well as gaming, with a focus on addressing health, longevity, and entertainment. This news is based on a press release statement from Gaxos.ai Inc. and is intended for informational purposes only. As Gaxos.ai Inc. (NASDAQ: GXAI) makes strategic moves to adjust the exercise price of warrants and issue new ones, investors and potential stakeholders are keenly observing the company's financial health and market performance. According to real-time data from InvestingPro, GXAI holds a market capitalization of $2.8 million. This relatively small market cap reflects the company's niche position in the artificial intelligence industry. InvestingPro data also reveals a significant 69.77% decline in the stock's price over the last six months, indicating a period of volatility and underperformance relative to market expectations. This is further emphasized by the stock's current price being only 14.95% of its 52-week high. Despite this, the company's liquid assets exceed short-term obligations, providing some level of financial stability. Two InvestingPro Tips that stand out for GXAI include the fact that the company holds more cash than debt on its balance sheet and that analysts anticipate a sales decline in the current year. These insights can be pivotal for investors considering the implications of the new warrant issuance and its impact on the company's capital structure. For those looking for more in-depth analysis, InvestingPro offers additional tips on GXAI, which can be accessed through their platform. It's worth noting that Gaxos.ai Inc. does not pay a dividend to shareholders, which could influence the investment decisions of income-focused investors. To explore further insights and tips that may influence investment strategies, readers can find more exclusive InvestingPro Tips on https://www.investing.com/pro/GXAI, with a total of 9 additional tips available as of the latest update.