Erayak Power Solution Group (NASDAQ: RAYA) is making headlines with a $7 million registered direct offering. The deal involves selling 107,692,307 Class A ordinary shares at a price of $0.065 apiece. But that’s not all – the offering also includes pre-funded warrants with a laughably low exercise price of $0.0001 per share.
Erayak Power Solution Group (NASDAQ: RAYA) ha annunciato un offerta diretta registrata da 7 milioni di dollari tramite la vendita di 107.692.307 azioni ordinarie di Classe A al prezzo di 0,065 dollari per azione.
L’offerta include warrant prefinanziati con un prezzo di esercizio di 0,0001 dollari per azione.
Erayak Power Solution Group (NASDAQ: RAYA) ha anunciado una oferta directa registrada de 7 millones de dólares mediante la venta de 107,692,307 acciones ordinarias Clase A a 0.065 dólares por acción.
La oferta incluye warrants prefinanciados con un precio de ejercicio de 0.0001 dólares por acción.
Erayak Power Solution Group (NASDAQ: RAYA)는 7백만 달러 규모의 등록 직접 공모를 발표했으며, 107,692,307주 클래스 A 보통주를 주당 0.065달러에 판매합니다.
이번 공모에는 주당 행사가격이 0.0001달러인 선납 워런트가 포함되어 있습니다.
Erayak Power Solution Group (NASDAQ : RAYA) a annoncé une offre directe enregistrée de 7 millions de dollars par la vente de 107 692 307 actions ordinaires de classe A au prix de 0,065 dollar par action.
L’offre comprend des bons de souscription préfinancés avec un prix d’exercice de 0,0001 dollar par action.
Erayak Power Solution Group (NASDAQ: RAYA) hat ein direktes registriertes Angebot über 7 Millionen US-Dollar angekündigt, bei dem 107.692.307 Class-A-Stammaktien zu 0,065 US-Dollar pro Aktie verkauft werden.
Das Angebot umfasst vorausfinanzierte Bezugsrechte mit einem Ausübungspreis von 0,0001 US-Dollar pro Aktie.
Positive
Negative
Erayak’s $7M offering at $0.065/share represents significant 107.7M share dilution, raising capital but at substantial cost to shareholders.
Erayak has announced a $7 million registered direct offering by selling 107.7 million shares at just $0.065 per share. This financing represents a substantial dilution for existing shareholders, as the company is dramatically increasing its share count to raise capital. The offering price appears to be at a discount to recent trading, which is typical for these transactions but further impacts existing investors.
The sheer number of new shares being issued—107.7 million—is particularly noteworthy when considering the company’s market capitalization and outstanding share count. This level of dilution suggests the company urgently needs capital, potentially to address operational challenges or fund growth initiatives.
The use of pre-funded warrants as an alternative to direct shares gives institutional investors flexibility in their investment timing while securing the capital for Erayak. Craft Capital Management’s involvement as the sole placement agent indicates this was likely a targeted offering to select institutional investors rather than a broader market offering.
While the $7 million infusion strengthens Erayak’s balance sheet in the short term, the substantial dilution at this price point raises questions about the company’s alternatives for financing and its current financial position. Investors should carefully consider how management plans to deploy this capital and whether it will generate returns sufficient to offset the significant ownership dilution.
07/31/2025 – 02:31 PM
Wenzhou, China, July 31, 2025 (GLOBE NEWSWIRE) — Erayak Power Solution Group Inc. (NASDAQ: RAYA) (“Erayak” or the “Company”), a leading manufacturer, designer, and exporter of high-quality products in the power supply industry, today announced that it has entered into a securities purchase agreement with certain institutional investors for the purchase and sale of an aggregate of 107,692,307 shares of the Company’s Class A ordinary shares, par value $0.0001 per share (the “Shares”) (or pre-funded warrants in lieu thereof) at a purchase price of $0.065 per share in a registered direct offering. The purchase price for the pre-funded warrants is identical to the purchase price for Shares, less the exercise price of $0.0001 per share.
The aggregate gross proceeds to the Company of this offering are expected to be approximately $7 million. The transaction is expected to close on or about August 1, 2025, subject to the satisfaction of customary closing conditions.
Craft Capital Management is acting as the sole placement agent for the offering.
The registered direct offering is being made pursuant to a shelf registration statement on Form F-3 (File No. 333-278347) previously filed by the Company and declared effective by the U.S. Securities and Exchange Commission (“SEC”) on May 16, 2024.
The offering is being made only by means of a prospectus supplement and accompanying prospectus. The prospectus supplement describing the terms of the public offering will be filed with the SEC prior to the closing and will form a part of the effective registration statement, available on the SEC’s website located at http://www.sec.gov.
Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from Craft Capital Management, 377 Oak St., Lower Concourse, Garden City, NY 11530, Attention: Syndicate Dept.; email: [email protected]
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Erayak Power Solution Group Inc.
Erayak specializes in the manufacturing, research and development, and wholesale and retail of power solution products. Erayak’s product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. Our products are used principally in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. Our goal is to be the premier power solutions brand and a solution for mobile life and outdoor living. For more information, visit
Safe Harbor Statement
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.
Erayak Power Solution Group Inc.
No. 528, 4th Avenue
Binhai Industrial Park
Wenzhou, Zhejiang Province
People’s Republic of China 325025
Email: [email protected]
What is the size and price of RAYA’s registered direct offering announced on July 31, 2025?
Erayak announced a $7 million registered direct offering through the sale of 107,692,307 Class A ordinary shares at $0.065 per share.
When is RAYA’s registered direct offering expected to close?
The offering is expected to close on or about August 1, 2025, subject to customary closing conditions.
Who is the placement agent for RAYA’s $7 million offering?
Craft Capital Management is acting as the sole placement agent for the offering.
What is the exercise price of RAYA’s pre-funded warrants in the offering?
The pre-funded warrants have an exercise price of $0.0001 per share, with a purchase price identical to the shares minus the exercise price.
How will RAYA’s registered direct offering impact existing shareholders?
The offering of 107,692,307 new shares at $0.065 per share represents a significant increase in share count, which may lead to substantial dilution for existing shareholders.
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