Global Mofy AI Limited’s (NASDAQ:GMM) stock price cratered on Friday after the Beijing-based company announced the pricing of a dilutive capital raise.
The generative AI-driven tech firm announced a registered direct offering of 8,247,420 Class A ordinary shares alongside corresponding Series A and Series B warrants.
Global Mofy AI priced the combined offering at 97 cents per share, striking a sharp blow to the equity’s valuation. The total gross proceeds will hit approximately $8 million before deducting placement agent fees and expenses.
Capital Allocated For AI Expansion
Global Mofy AI specializes in virtual content production and 3D digital asset development through its Mofy Lab platform. The company said it plans to use the net proceeds from the offering for product development and the continued expansion of its AI-powered platforms and related infrastructure.
From a trend perspective, GMM is deeply below its major moving averages: trading 77% below the 20-day SMA ($1.30), 77.5% below the 50-day SMA ($1.33), and 81.2% below the 200-day SMA ($1.59). Those gaps typically signal that rallies are being sold and that the market is still treating prior breakdown zones as overhead supply.
The moving-average structure is also bearish, with the 20-day SMA below the 50-day SMA and the 50-day SMA below the 200-day SMA, which is the classic-stacked downtrend setup.
- Key Resistance: 90 cents — the 52-week low zone that can act as overhead resistance after a breakdown
- Key Support: 30 cents — the current area being tested after the latest selloff
GMM Stock Price Activity: Global Mofy AI shares were down 69.19% at 30 cents at the time of publication on Friday, according to Benzinga Pro data.
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