Shares of Global Mofy AI Limited (GMM) slid to $1.00, a 10% single-session drop and the latest leg in a punishing slide that has erased roughly 28% of value in just five trading days from the October 14 close of $1.38. The catalyst: disclosure of a related-party deal that hands the CEO more voting control while diluting outside shareholders. Global Mofy's CEO Is Buying His Own Assets With Shareholders' Stock — Should Investors Worry About Who Really Benefits?

Shares of Global Mofy AI Limited (GMM) tumbled 10% to $1.00, extending a brutal five-session slide that has carved 28% off the stock since October 14. The trigger: Global Mofy agreed on October 19 to acquire a 4.875% stake in Qifei (Shanghai) Technology by issuing 3 million Class B ordinary shares at $1.30 each, valuing the deal at $3.9 million. For a company whose market capitalization sat near just $9.7 million as of October 20, that is a massive chunk of equity handed out in a single stroke — and the circumstances surrounding it deserve scrutiny.

  • The CEO Is on Both Sides of the Table. Chairman and CEO Haogang Yang is the beneficial owner of the seller and the share recipient, and serves as the sole director and legal representative of the target company. In plain terms, Yang is selling his own asset to the company he runs, and paying himself with newly created super-voting shares. The company says the valuation was based on a report by an unaffiliated third party and that the board determined terms to be consistent with arm's-length transactions — but independent investors have little means to verify that claim.

  • Super-Voting Shares Lock In One-Man Control. The issuance gives Yang approximately 87.9% of aggregate voting power, with each Class B share carrying 20 votes.

These Class B shares confer no dividend rights and cannot be converted into Class A shares. That means outside shareholders bear the dilution while gaining zero say over the company's direction — a governance structure that concentrates power with almost no accountability to public investors.

  • A Pattern of Stock-for-Stake Deals Is Quietly Inflating the Share Count. This is not an isolated event. An August 2026 acquisition of 5.06% in the same target preceded this deal, bringing total Qifei ownership to roughly 9.9%. Separately, Global Mofy issued 2.5 million Class A shares valued at $2 million for a 2% stake in Star Touch, another AI-related entity.

The company's market cap has decreased by 83.2% over the past year , yet management keeps printing shares for opaque acquisitions instead of buying them with cash.

  • The Numbers Don't Add Up for Minority Holders. The shares were priced at $1.30 — a premium to today's $1.00 market price — meaning the market is immediately marking the deal as value-destructive. Only 1.52 million in working capital and $1.21 million in cash sit on the balance sheet , reinforcing why stock, not cash, is the currency of choice. Investors in a sub-$10 million company watching the CEO entrench control through related-party paper should ask a blunt question: whose interests is this strategy actually serving?