NEW YORK, June 1, 2026, 17:01 EDT
- XMax finished at $8.56, rising 0.12%. The price held within roughly 3% of its 52-week peak.
- The company’s preliminary proxy asks shareholders to sign off on major discounted share issuances connected to its AI expansion plans.
- Furniture stocks were mostly quiet, leaving attention on XMax’s new funding push and its AI move.
XMax Inc. shares ended Monday mostly flat, holding close to their highest level in a year as the company said it will ask shareholders to vote on a proposal that could clear the way for large new stock sales to support its artificial intelligence efforts.
XMax (Nasdaq) finished the session at $8.56, up a penny. The stock traded from $8.44 to $8.67 during the day. It’s still just below a 52-week high of $8.83. Shares have stayed near that level despite the recent run, putting XMax in a spot that’s hard to compare with its past life as a small furniture stock.
Today’s small move is not the main question. It is the capital plan that matters now.
XMax, in a proxy filed late Friday, is asking shareholders to sign off on two proposals: one to let the company sell up to 100 million shares in a private placement and another to allow up to 100 million more in a registered direct offering. A private placement only goes to select investors, not the public, while the registered direct offering would use an effective registration statement for a direct sale.
XMax said in the filing that shares could sell for less than Nasdaq’s minimum price and at discounts as deep as 50% to the previous close. As of May 27, XMax listed 63,602,326 shares outstanding. That means dilution will be a key factor for this deal, since issuing more shares reduces current holders’ ownership.
The company said in its filing it’s seeking money to back its shift to AI software and hardware, as well as cloud and GPU compute infrastructure, enterprise AI agents, and access to AI models. GPU compute is the use of graphics chips to process intensive AI jobs.
XMax is pushing to be seen as more than just a furniture distributor. The company said on May 22 its XMax AI unit signed a new agreement for AI model API services, with the potential to bring in around $3.6 million a year, depending on how much customers use it. An API, or application programming interface, lets different software systems work together. “The agreement validates the growing demand for our AI infrastructure,” CEO Xiaohua Lu said. Barchart
XMax shifted to AI after its first quarter saw net sales slide 32% to $1.8 million. Net income was $0.2 million, a swing from a loss last year. CEO Lu said the quarter was a “pivotal period” as XMax kicked off AI work, but said weak market conditions and tariffs cut into furniture revenue. GlobeNewswire
The difference with other furniture names stood out Monday. Lovesac fell 0.4%, Ethan Allen ticked up 0.1%, while RH added 0.7%. Those moves made XMax look less tied to furniture demand and more about whether investors see the AI overhaul driving revenue before dilution from new shares sets in.
Wolfpack Research, a short seller, went after XMax on May 21. The firm said it was short the stock and accused XMax of making false or conflicting statements about its suppliers, customers, an AI agreement and certain investments. Wolfpack also raised doubts about XMax’s switch from furniture into AI. These are Wolfpack’s allegations, not regulator findings.
Shareholders looking for the next move could get a catalyst tied to share count rather than sales. The July 24 special meeting could give XMax a bigger window to raise cash, if the proposals win approval. But details like pricing and buyers are still unclear. If the big AI contracts don’t see real take-up, or if new discounted shares hit the market harder than expected, the recent stock rally might not last.
