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Gaxos.ai Inc. Announces Exercise of Warrants for $3.24 Million Gross Proceeds
Roseland, NJ, Sept. 20, 2024 (GLOBE NEWSWIRE) -- Gaxos.ai Inc. (NASDAQ: GXAI), (“Gaxos” or the “Company”), a company developing artificial intelligence
About this update from Gaxos.ai Inc.
[{"type":"text","content":"Roseland, NJ, Sept. 20, 2024 (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 March 2024 and having an original exercise price of $5.50 per share, at a reduced exercise price of $2.58 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). H.C. Wainwright & Co. 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 $2.33 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 September 23, 2024, 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 $3.24 million, 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 underlyi...