ROSELAND, NJ - Gaxos.ai Inc. (NASDAQ:GXAI), an artificial intelligence company, has announced a 1-for-12 reverse split of its common stock, set to take effect after the market closes on March 7, 2024. Starting with the opening of trading on March 8, 2024, Gaxos.ai's common stock will trade on The Nasdaq Capital Market on a post-split basis under its current ticker symbol "GXAI."
The reverse stock split will convert every 12 shares of the company's issued and outstanding common stock into one share. Fractional shares resulting from the split will be rounded up to the next whole share. Following the split, Gaxos.ai is expected to have approximately 981,523 shares of common stock issued and outstanding.
This corporate action will also change the CUSIP number associated with the company's common stock to 62911P 300. The reverse stock split is a strategic move by the company, which is involved in developing AI applications for sectors including health and wellness as well as gaming.
Gaxos.ai emphasizes its commitment to enhancing the human-AI relationship and addressing various challenges through AI solutions.
The information provided is based on a press release statement from Gaxos.ai Inc.
InvestingPro Insights
As Gaxos.ai Inc. (NASDAQ:GXAI) takes a significant step with its 1-for-12 reverse stock split, investors are closely monitoring the company's financial health and stock performance. The reverse split is intended to increase the market price per share, a move that could potentially attract a broader range of investors and improve the perception of the company's stock.
InvestingPro data reveals that Gaxos.ai has a market capitalization of approximately 5.95 million USD, indicating the size of the company in financial terms. The firm's Price to Book ratio, as of the last twelve months ending in Q3 2023, stands at 1.4, which could suggest that the market is valuing the company's assets fairly in relation to its stock price. However, the company's Price/Earnings (P/E) ratio is negative, at -1.73, reflecting that Gaxos.ai is not currently profitable.
From a performance standpoint, InvestingPro data shows that Gaxos.ai's stock has experienced a strong return over the last month, with a 109.7% price total return. This could indicate a recent upswing in investor confidence or reaction to market events. Additionally, the company has seen a 26.96% price total return over the last three months, yet the one-year price total return stands at -73.6%, highlighting the stock's volatility and the challenges it has faced over a longer period.
InvestingPro Tips for Gaxos.ai suggest that while the company holds more cash than debt on its balance sheet, which is a positive sign for financial stability, it has not been profitable over the last twelve months. The stock is known to trade with high price volatility, which could be a point of consideration for risk-averse investors. Furthermore, it is important to note that Gaxos.ai does not pay a dividend, which might influence the investment decisions of income-focused shareholders.
For those looking to delve deeper into Gaxos.ai's financials and stock performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/GXAI. Investors can also benefit from a promotional offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 9 more InvestingPro Tips available, subscribers can gain a comprehensive understanding of the company's investment potential.
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