Global Mofy AI Stock Crashes 69% After Pricing Dilutive $8M Registered Offering

Global Mofy AI Limited (NASDAQ: GMM) shares collapsed 69% to $0.29 on Friday after the Beijing-based company priced an $8 million registered direct offering that will flood the market with new shares and warrants, according to Benzinga.

The offering consists of 8,247,420 Class A ordinary shares priced at $0.97 each, bundled with Series A and Series B warrants for an additional 16,494,840 shares, according to the company’s press release via GlobeNewswire. If all warrants are exercised, the total dilution reaches roughly 24.7 million new shares. The offering is expected to close on or about May 26, 2026. Boral Capital is serving as exclusive placement agent.

What Global Mofy Does

Global Mofy specializes in virtual content production and 3D digital asset development through its Mofy Lab platform. The company, incorporated in 2021 and headquartered in Beijing, said it plans to use net proceeds for working capital, product development, and expansion of its AI-powered platforms and infrastructure, per the press release. Earlier this month, Global Mofy announced it had strategically participated in a new financing round for Kimi AI developer Moonshot AI.

Technical Damage

The stock was already trading well below its moving averages before Friday’s drop. According to Benzinga, GMM sat 77% below its 20-day simple moving average of $1.30 and 81.2% below its 200-day SMA of $1.59. Trading volume hit 12.8x the daily average on Friday, per Stock Titan’s Argus tracker. The move erased approximately $35 million from the company’s valuation, leaving GMM with a market cap around $14.9 million.

Growth-Stage AI Funding Under Pressure

The collapse contrasts sharply with the capital still flowing to category-leading AI agent companies. This week alone, Pivot raised $40 million for agentic procurement, Foundation Devices secured $6.4 million for AI agent authorization hardware, and Manus AI reportedly explored a $1 billion raise to reverse its Meta acquisition. The divergence suggests investor appetite for AI agent infrastructure remains strong at the top, while growth-stage companies without clear differentiation face increasingly punitive capital markets.

Disclosure: This article is for informational purposes only and does not constitute investment advice.