Share Dilution

Erayak Power Solution Group (RAYA) announced a $7 million registered direct offering, selling 107,692,307 Class A ordinary shares at $0.065 each. The offering, expected to close around August 1, 2025, includes pre-funded warrants with a $0.0001 exercise price. Craft Capital Management is the sole placement agent. This infusion of capital aims to bolster Erayak’s financial position, but the issuance of a large number of new shares will likely cause significant dilution for existing shareholders.

SeaStar Medical raised $4M through a registered direct offering of 5.24 million shares priced at $0.763 each, with five-year warrants exercisable at $0.638. The capital infusion supports commercialization of its FDA-approved pediatric AKI device and adult trials, but triggers 33% equity dilution. Analysts note the structure creates potential stock price pressure, as warrants priced 16% below offering prices might constrain valuations. While addressing immediate liquidity needs, the conventional equity approach suggests urgency in funding operations rather than strategic growth initiatives, with funds allocated vaguely for corporate purposes.