Global Mofy AI Limited (Nasdaq: GMM) completed a private placement of 15 million Class A ordinary shares, raising gross proceeds of $4.8 million at a price of $0.31875 per share. The transaction, closed on December 5 2025, is the company’s first new capital raise in the past month and is intended to fund working capital, product development, and the expansion of its AI‑powered technology platforms.
The financing is a strategic move to accelerate the build‑out of the company’s Mofy Lab and the newly launched Gauss AI Lab, both of which underpin Global Mofy AI’s high‑definition virtual content offerings in China. By injecting fresh equity, the firm aims to scale its 3D digital asset library—currently over 100,000 high‑precision assets—and to deepen its generative AI capabilities, positioning it to capture growing demand for immersive media in the region.
Financially, Global Mofy AI has posted strong revenue growth, with $41.4 million in revenue for the fiscal year ended September 30 2024, a 53.8% increase from the prior year, and $26.7 million for the six months ended March 31 2025, up 34.2% year‑over‑year. Net income rose to $12.1 million for the full year and $5.0 million for the first half, reflecting a solid gross margin of 50.3% and a net margin of 29.4%. Despite these gains, the company’s stock has fallen more than 60% over the past year, underscoring the need for additional capital to sustain momentum and mitigate valuation pressure.
The issuance of 15 million new shares will dilute existing shareholders, as the shares are not registered under the Securities Act and cannot be resold in the U.S. without registration or an exemption. Management has indicated that the capital raise will support ongoing investments in AI infrastructure and product development, while also providing a buffer against the company’s declining market valuation and the competitive pressures of the AI‑driven content market.
Overall, the private placement represents a significant capital infusion that will enable Global Mofy AI to accelerate its technology roadmap and expand its digital asset offerings, while also addressing the dilution impact and the company’s need to strengthen its balance sheet in a challenging valuation environment.
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