AYRO Announces $10.0 Million Registered Direct Offering Priced At-the-Market under Nasdaq Rules
Rhea-AI Summary
AYRO, Inc. announced a strategic financing agreement led by Carnegie Hudson Resources, an investment arm of Wanxiang America. The offering comprises approximately 1,650,165 shares of common stock priced at $6.06 per share, aiming for gross proceeds of about $10 million. Investors will also receive warrants to acquire additional shares at higher prices. AYRO intends to use the funds for manufacturing, operations, and market expansion. The offering is expected to close on November 24, 2020, subject to customary conditions.
Positive
- Expected gross proceeds of approximately $10 million.
- Funds allocated for manufacturing, production, and market expansion.
Negative
- Potential dilution of existing shareholders due to the issuance of new shares and warrants.
News Market Reaction
On the day this news was published, AYRO gained 31.03%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
-Financing being strategically led by an investment arm of Wanxiang America
AUSTIN, Texas, Nov. 23, 2020 (GLOBE NEWSWIRE) -- AYRO, Inc. (Nasdaq: AYRO) (“AYRO” or the “Company”), a manufacturer of light-duty, urban, and short-haul electric vehicles (EVs), today announces it has entered into definitive agreements with Carnegie Hudson Resources, an investment arm of Wanxiang America, and several existing institutional investors.
Wanxiang America is a subsidiary of Wanxiang Group, a Chinese conglomerate and owner of Karma Automotive and A123 Systems, a developer of EV batteries and supplier to automotive manufacturers worldwide. Karma recently signed a strategic manufacturing, engineering and design partnership with AYRO.
Terms of the offering include the sale of approximately 1,650,165 shares of the Company’s common stock, at a purchase price of
The gross proceeds to AYRO from this offering are expected to be approximately
The shares of common stock (but not the warrants or the shares of common stock underlying the warrants) are being offered by AYRO pursuant to a "shelf" registration statement on Form S-3 (File No. 333-227858) previously filed with the Securities and Exchange Commission (the "SEC") on October 16, 2018 and declared effective by the SEC on November 8, 2018. The offering of the securities will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A final prospectus supplement and accompanying prospectus relating to the shares of common stock being offered will be filed with the SEC. Electronic copies of the final prospectus supplement and accompanying prospectus may be obtained, when available, on the SEC's website at http://www.sec.gov.
The warrants described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and Regulation D promulgated thereunder and, along with the shares of common stock underlying the warrants, have not been registered under the Act, or applicable state securities laws. Accordingly, the warrants and underlying shares of common stock may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.
This press release shall not constitute an offer to sell or a 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 the registration or qualification under the securities laws of any such state or other jurisdiction.
Spartan Capital Securities, LLC & Palladium Capital Group, LLC acted as advisors to the offering.
About AYRO, Inc.
Texas-based AYRO, Inc. engineers purpose-built electric vehicles to enable sustainable fleets. With rapid, customizable deployments that meet specific buyer needs, AYRO’s agile EVs are an eco-friendly microdistribution alternative to gasoline vehicles. The AYRO 411 Club Car is the only zero-emission, light duty EV known to AYRO that can be optimized for the needs of any sustainable fleet, while the AYRO 311 EV can be configured for a variety of urban last-mile transportation needs. AYRO innovates with speed, discipline, and agility and was founded in 2017 by entrepreneurs, investors, and executives with a passion for creating sustainable urban electric vehicle solutions for micromobility. For more information, visit: www.ayro.com
Forward-Looking Statements
This press release may contain forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any expected future results, performance, or achievements. Words such as "anticipate," "believe," "could," "estimate," "expect," "may," "plan," "project," "will," "would" and their opposites and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: we have a history of losses and has never been profitable, and we expect to incur additional losses in the future and may never be profitable; the market for our products is developing and may not develop as expected; our business, results of operations and financial condition may be adversely impacted by public health epidemics, including the recent COVID-19 outbreak; our limited operating history makes evaluating its business and future prospects difficult and may increase the risk of any investment in its securities; we may experience lower-than-anticipated market acceptance of its vehicles; developments in alternative technologies or improvements in the internal combustion engine may have a materially ad
FAQ
What is the purpose of AYRO's recent financing agreement?
How many shares is AYRO offering in this financing?
What is the expected closing date for AYRO's offering?
What are the prices for AYRO's warrants?
Who is leading the financing for AYRO?
