American Trust Investment Services Serves as Exclusive Placement Agent for Fly-E Group Inc.'s Follow-On Offering

Rhea-AI Summary

American Trust Investment Services (ATIS) has been appointed as the exclusive placement agent for Fly-E Group's (NASDAQ: FLYE) follow-on public offering. The offering includes 28,595,553 common stock shares and 57,191,106 warrants at $0.2428 per share and accompanying warrants, aiming to raise approximately $6.94 million in gross proceeds. Each share comes with two five-year warrants, exercisable immediately at 120% of the offering price. Fly-E Group, a U.S.-based electric vehicle company specializing in smart electric motorcycles and e-bikes under the Fly E-Bike brand, operates over 30 retail stores nationwide. The company plans to use the proceeds for inventory purchases, vehicle production, and general corporate purposes.

Positive

• Expected gross proceeds of $6.94 million to support growth and operations
• Company has established presence with over 30 retail stores across the United States
• Planned expansion into international markets

Negative

• Significant dilution for existing shareholders due to large number of new shares
• Additional potential dilution from 57.19M warrants if exercised
• Low offering price of $0.2428 per share suggests weak market position

Insights

Financial Analyst

Fly-E Group raises $6.94M through dilutive offering with significant warrant coverage, funding electric mobility expansion plans.

This follow-on offering represents a notable capital raising event for Fly-E Group (NASDAQ: FLYE), though with terms that warrant careful examination. The structure consists of 28,595,553 shares at $0.2428 per share, with each share accompanied by two five-year warrants exercisable at 120% of the offering price. This relatively low per-share price and the double-warrant coverage suggest challenging capital-raising conditions.

The $6.94 million gross proceeds (before fees and expenses) provides essential growth capital but comes at the cost of significant dilution for existing shareholders. The warrant structure creates additional potential future dilution, as the 57,191,106 warrants represent more than twice the number of shares in the current offering. This approach typically indicates a company needing to offer enhanced incentives to attract investors.

From an operational perspective, Fly-E's network of 30+ U.S. retail stores demonstrates established market presence in the electric mobility space. The allocation of proceeds toward inventory purchases and vehicle production suggests the company is focused on scaling operations rather than early-stage development, indicating potential market demand for their products.

This capital infusion should provide Fly-E with resources to execute its stated expansion plans, including international market entry, though the relatively modest raise size may limit the scope of these initiatives. The company's ability to secure American Trust Investment Services as exclusive placement agent provides some validation of institutional support, despite the dilutive terms.

Firm Supports Capital Raise to Advance Expansion in Electric Mobility

NEW YORK, June 4, 2025 /PRNewswire/ -- American Trust Investment Services, Inc. (ATIS) is pleased to announce its role as the exclusive placement agent for Fly-E Group Inc. (NASDAQ: FLYE) in connection with the company's follow-on public offering.

The offering consists of 28,595,553 shares of common stock and 57,191,106 warrants to purchase common stock, with a public offering price of $0.2428 per share and accompanying warrants, for expected gross proceeds of approximately $6.94 million, before deducting placement agent fees and offering expenses. Each share is being offered together with two five-year warrants, exercisable immediately at 120% of the offering price.

Fly-E Group Inc. is a U.S.-based electric vehicle company focused on the design, distribution, and retail of smart electric motorcycles, e-bikes, scooters, and related accessories under the Fly E-Bike brand. The company currently operates more than 30 retail stores across the United States and has plans to expand into new international Markets.

The net proceeds from the offering will be used to support inventory purchases, vehicle production, and general corporate purposes, as outlined in the company's registration Statement.

"This is an exciting and important transaction for Fly-E," said James Dever, Chief Executive Officer of ATIS. "We're proud to support their mission and growth strategy as they scale operations and build market leadership in sustainable mobility." "This offering reflects our continued focus on partnering with founder-driven, high-growth companies," added Ian Lippy, Chief Operating Officer of ATIS. "We look forward to seeing Fly-E's expansion accelerate with the backing of new capital and committed investors."

About American Trust Investment Services, Inc.

American Trust Investment Services, Inc. (ATIS) is a leading investment bank and financial services firm, providing tailored capital markets solutions for emerging and established companies. Headquartered in Chicago, with offices nationwide, ATIS offers a full suite of investment banking, brokerage, and advisory services. The firm is recognized for its hands-on approach and long track record of guiding businesses through complex financial transactions with integrity and expertise.
For more information, visit www.amtruinvest.com.

Media & Company Contact:
Ian E. Lippy
American Trust Investment Services, Inc. (ATIS) 
media@amtruinvest.com 

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SOURCE American Trust Investment Services, Inc.

FAQ

What is the size and price of FLYE's follow-on offering?

The offering consists of 28,595,553 shares at $0.2428 per share with two accompanying warrants per share, aiming to raise approximately $6.94 million in gross proceeds.

How will Fly-E Group (FLYE) use the proceeds from the offering?

The proceeds will be used to support inventory purchases, vehicle production, and general corporate purposes.

How many warrants are included in FLYE's follow-on offering?

The offering includes 57,191,106 warrants, with two five-year warrants provided for each share, exercisable immediately at 120% of the offering price.

How many retail stores does Fly-E Group currently operate?

Fly-E Group currently operates more than 30 retail stores across the United States.

Who is the placement agent for Fly-E Group's (FLYE) follow-on offering?

American Trust Investment Services (ATIS) serves as the exclusive placement agent for the offering.