Fly-E Group, Inc. Announces Closing of $6.94 Million Public Offering

Rhea-AI Summary

Fly-E Group (NASDAQ: FLYE), an electric vehicle company specializing in smart electric motorcycles, bikes, and scooters, has completed a public offering raising $6.94 million. The offering consisted of 28,595,553 shares of common stock and 57,191,106 warrants, priced at $0.2428 per unit. Each unit included one share and two warrants, with each warrant exercisable at $0.2913 (120% of offering price) for five years. The company plans to use the proceeds for inventory purchases, vehicle production costs, and working capital. American Trust Investment Services acted as the exclusive placement agent for the offering, which closed on June 4, 2025.

Positive

• Raised $6.94 million in gross proceeds to fund operations
• Warrants provide potential for additional future funding at 120% of current price
• Funds allocated for inventory and production, supporting business growth

Negative

• Significant dilution to existing shareholders with 28.6M new shares
• Low offering price of $0.2428 per share indicates weak market position
• Additional potential dilution from 57.2M warrants if exercised

Insights

Financial Analyst

Fly-E secured $6.94M funding at discounted pricing, significantly diluting existing shareholders while providing essential working capital for operations.

Fly-E Group has closed a $6.94 million public offering through a substantially dilutive transaction structure. The company issued 28,595,553 shares at just $0.2428 per share, alongside 57,191,106 warrants exercisable at $0.2913 (a 20% premium to the offering price). This indicates considerable investor hesitation about Fly-E's current valuation.

The offering's structure raises several concerns. Each share came with two warrants, creating potential for significant additional dilution if exercised within their five-year term. This financing approach typically signals cash flow challenges, as companies with stronger financial positions can secure more favorable terms.

The stated use of proceeds focuses on inventory purchases, production costs, and working capital - suggesting the company needs these funds for basic operational requirements rather than growth initiatives. This implies Fly-E may have been facing liquidity constraints before this capital injection.

The involvement of American Trust Investment Services as placement agent, rather than a larger financial institution, might indicate limited interest from major underwriters. The low share price further suggests the EV manufacturer is struggling to attract investment at higher valuations, likely reflecting challenges in the competitive electric mobility space where established players dominate market share.

While this funding provides Fly-E breathing room to continue operations, the dilutive terms come at significant cost to existing shareholders and highlight ongoing financial vulnerability in the company's business model.

NEW YORK, June 04, 2025 (GLOBE NEWSWIRE) -- Fly-E Group, Inc. (Nasdaq: FLYE) (“Fly-E” or the “Company”), an electric vehicle company engaged in designing, installing, selling, and renting smart electric motorcycles, electric bikes, and electric scooters, today announced the closing of its public offering of 28,595,553 shares of common stock (the “Common Stock”) and 57,191,106 warrants (the “Warrants”) to purchase Common Stock (including shares of Common Stock underlying warrants) at a public offering price of $0.2428. Each share of Common Stock was sold together with two Warrants, with each Warrant to purchase one share of Common Stock. Each Warrant is exercisable immediately with an exercise price equal to 120% of the offering price ($0.2913 per share), and expires on the fifth anniversary of the issuance date, subject to certain adjustments.

The offering closed on June 4, 2025. Gross proceeds to the Company, before deducting placement agent's fees and other offering expenses, were approximately $6.94 million. The Company intends to use the net proceeds of this offering for purchase of inventory and production costs of its vehicles and working capital.

American Trust Investment Services, Inc. acted as exclusive placement agent in connection with the offering.

The securities above were offered pursuant to a registration statement on Form S-1, as amended, (File No. 333-286678) which was declared effective by the Securities and Exchange Commission (the "SEC") on May 15, 2025. A final prospectus relating to the offering has been filed with the SEC and is available on the SEC’s website at http://www.sec.gov. The offering was made only by means of a prospectus forming part of the effective registration statement. Electronic copies of the prospectus relating to this offering may also be obtained from American Trust Investment Services, Inc., 1244 119th St, Whiting, Indiana 46394, by telephone at (219) 473-5542 or by email at info@amtruinvest.com.

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 the registration or qualification under the securities laws of any such state or other jurisdiction.

About Fly-E Group, Inc.

Fly-E Group, Inc. is an electric vehicle company that is principally engaged in designing, installing, selling, and renting smart electric motorcycles, electric bikes and electric scooters under the brand "Fly E-Bike." The Company's commitment is to encourage people to incorporate eco-friendly transportation into their active lifestyles, ultimately contributing towards building a more environmentally friendly future. For more information, please visit the Company's website: https://investors.flyebike.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "would," "should," "could," "may" or other similar expressions. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct. The Company cautions investors that actual results may differ materially from the anticipated results, and that the forward-looking statements contained in this press release are subject to the risks set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the section under "Risk Factors" in the Registration Statement on Form S-1, as amended for this offering and the Company’s most recent Annual Report on Form 10-K for the fiscal year ended March 31, 2024, filed with the SEC on June 28, 2024. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

For investor and media inquiries, please contact:

Fly-E Group, Inc.
Investor Relations Department
Email: ir@flyebike.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

What was the size of Fly-E Group's (FLYE) public offering in June 2025?

Fly-E Group raised $6.94 million through an offering of 28,595,553 shares of common stock and 57,191,106 warrants at $0.2428 per unit.

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

The company plans to use the net proceeds for purchasing inventory, production costs of its vehicles, and working capital.

What are the terms of the warrants in Fly-E Group's (FLYE) offering?

Each warrant is exercisable immediately at $0.2913 per share (120% of offering price) and expires after five years from issuance.

Who was the placement agent for Fly-E Group's (FLYE) public offering?

American Trust Investment Services, Inc. acted as the exclusive placement agent for the offering.

What is Fly-E Group's (FLYE) main business?

Fly-E Group is an electric vehicle company that designs, installs, sells, and rents smart electric motorcycles, electric bikes, and electric scooters.