Erayak Power Solution Group Inc. Announces 1-for-10 Reverse Stock Split Effective April 20, 2026

Erayak Power Solution Group (Nasdaq: RAYA) announced a 1-for-10 reverse stock split approved March 25, 2026 and effective April 20, 2026, with a new CUSIP G3109F129.

Rhea-AI Summary

Erayak Power Solution Group (Nasdaq: RAYA) announced a 1-for-10 reverse stock split approved March 25, 2026 and effective April 20, 2026, with a new CUSIP G3109F129. Each ten Class A or Class B ordinary shares will combine into one share, par value rising from US$0.022 to US$0.22.

The company expects ~978,474 Class A and 4,091 Class B shares outstanding post-split. No fractional shares will be issued; fractional entitlements will be rounded up. The transfer agent is VStock Transfer LLC.

Positive

• Reverse split effective April 20, 2026 with new CUSIP G3109F129
• Par value increased from $0.022 to $0.22
• Expected post-split issued shares: 978,474 Class A and 4,091 Class B
• Action intended to help maintain Nasdaq listing

Negative

• Reverse split reflects need to raise per-share price to meet Nasdaq standards

Argus Apr 16 session

-15.12% close to close Open Argus

Details

News Market Reaction – RAYA

In the Apr 16 session, RAYA declined 15.12%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -15.1% in the session following this news. A negative reaction despite this mechan...

Analysis

The stock dropped -15.1% in the session following this news. A negative reaction despite this mechanical 1-for-10 reverse split would fit a pattern where RAYA, at $0.625 and 99.92% below its 52-week high, often traded erratically around news. Recent financing steps, including a $20,000,000 ATM program and a US$400,000 Regulation S share sale, highlight ongoing equity issuance. Past strategic announcements have seen both steep rallies and large selloffs, so further downside could reflect investor sensitivity to dilution and capital-structure moves.

Key Figures

Reverse split ratio: 1-for-10 Post-split Class A O/S: 978,474 shares Post-split Class B O/S: 4,091 shares +5 more

Reverse split ratio

1-for-10

Board-approved share consolidation on March 25, 2026

Post-split Class A O/S

978,474 shares

Expected issued and outstanding after reverse stock split

Post-split Class B O/S

4,091 shares

Expected issued and outstanding after reverse stock split

Par value per share

US$0.22

Par value after 1-for-10 reverse stock split (from US$0.022)

Authorized share capital

US$220,000,000

Post-split authorized capital across Class A and Class B

ATM program size

$20,000,000

New at-the-market offering capacity under March 2026 agreement

Reg S offering proceeds

US$400,000

5,000,000 Class A shares at US$0.08, closed April 7, 2026

Pre-split share price

$0.625

RAYA trading price before reverse split effectiveness announcement date

Historical Context

5 past events · Latest: Apr 10

5 events

1. Apr 10

   Strategic U.S. pivot

   24h Move

   +107.9%

   Announced U.S.-centric Nexora strategy and new tri-fuel and UPS product lineup.

2. Mar 25

   Strategic roadmap

   24h Move

   +4.4%

   Outlined Home Energy Defense roadmap using tri-fuel inverter platforms and new models.

3. Mar 24

   AI energy update

   24h Move

   -35.3%

   Detailed UPS-integrated platforms for AI demand and facility build-out progress.

4. Jan 23

   Demand surge update

   24h Move

   -34.1%

   Reported >20x U.S. generator sales surge during winter storms and tight inventory.

5. Oct 17

   U.S. subsidiary launch

   24h Move

   +6.9%

   Established Nexora Group as North America HQ to support global expansion.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

reverse stock split, cusip, at-the-market offering, regulation s, +4 more

8 terms

reverse stock split financial

"approved a reverse split of its Class A ordinary shares and Class B ordinary shares"

A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.

cusip technical

"under a new CUSIP number – G3109F129"

A CUSIP is a nine-character alphanumeric code that uniquely identifies a U.S. or Canadian financial security—such as a stock, bond, or fund share—like a Social Security number for an investment. It matters to investors because brokers, exchanges and record-keepers use the CUSIP to match trades, track ownership, settle transactions and pull accurate records, reducing errors and ensuring money and securities go to the right place.

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at-the-market offering financial

"sales may occur from time to time as an at the market offering"

An at-the-market offering is a method companies use to sell new shares of stock directly into the open market over time, rather than all at once. This allows them to raise money gradually, similar to selling small pieces of a product instead of a large batch. For investors, it means the company can access funding more flexibly, but it may also increase the supply of shares and influence the stock’s price.

regulation s regulatory

"sold in reliance on Regulation S under the U.S. Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

form f-3 regulatory

"incorporated by reference into the company’s Form F-3 registration statement"

Form F-3 is a U.S. securities filing that lets eligible foreign companies pre-register and then quickly sell shares or other securities to raise money, because they already meet ongoing reporting and size tests. For investors it signals that the company is up-to-date with regulatory disclosure and has an efficient way to issue new securities — similar to a pre-approved credit line — which can mean faster capital raises but also potential dilution of existing holdings.

prospectus supplement regulatory

"filed a prospectus supplement to offer up to $20,000,000"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

sales agreement financial

"through a new Sales Agreement dated March 13, 2026 with Craft Capital"

A sales agreement is a written contract that sets out the terms for selling goods, services, or assets, specifying price, delivery, payment schedule and responsibilities of each side. For investors it matters because it creates a predictable stream of revenue or cash obligations, clarifies timing and risk, and can change a company’s value or forecasts much like a signed order turns a customer’s verbal intent into a firm commitment.

shelf registration regulatory

"under its effective Form F-3 shelf registration"

Shelf registration is when a company gets permission ahead of time to sell new stocks or bonds over a period of time instead of all at once. It matters to investors because it lets a company raise money quickly when needed, but it can also change the value of existing shares if many new ones are sold.

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WENZHOU, China, April 16, 2026 (GLOBE NEWSWIRE) -- ERAYAK Power Solution Group Inc. (Nasdaq: RAYA) (“Erayak” or “we,” “our,” or the “Company”), a manufacturer, designer, and exporter of power solution products, today announced that on March 25, 2026, its board of directors approved a reverse split of its Class A ordinary shares and Class B ordinary shares on a one-for-ten basis (the “Reverse Stock Split”). The Company’s Class A Ordinary Shares will begin trading on the Nasdaq Stock Market LLC (“Nasdaq”) on a post-split basis on April 20, 2026 under the symbol “RAYA” under a new CUSIP number – G3109F129.

As a result of the Reverse Stock Split, each ten (10) issued and outstanding Class A ordinary shares will be combined into one (1) Class A ordinary share and each ten (10) issued and outstanding Class B ordinary shares will be combined into one (1) Class B ordinary share, automatically and without any action by shareholders. The reverse split will result in a proportional increase in par value from US$0.022 per share to US$0.22 per share and an adjustment of the Company’s authorized share capital to US$220,000,000 divided into (a) 900,000,000 Class A ordinary shares with a par value of US$0.22 each and (b) 100,000,000 Class B ordinary shares with a par value of US$0.22 each. After giving effect to the Reverse Stock Split, the Company expects to have approximately 978,474 Class A ordinary shares and 4,091 Class B ordinary shares issued and outstanding. The Reverse Stock Split is intended to increase the market price per share of the Company’s Class A ordinary shares to allow the Company to maintain its Nasdaq listing.

No fractional shares will be issued as a result of the Reverse Stock Split. Shareholders who would be entitled to a fractional share as a result of the Reverse Stock Split shall have their entitlement rounded up to the nearest whole share.

The Reverse Stock Split was approved by a vote of the Company’s shareholders at its extraordinary general meeting of shareholders held on February 5, 2026.

The Company’s transfer agent, VStock Transfer LLC, will act as the exchange agent. Adjustments made to Class A ordinary shares and Class B ordinary shares represented by physical stock certificates can be made upon surrender of the certificate to the transfer agent. Please contact VStock Transfer LLC for further information at (212) 828-8436.

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 www.erayakpower.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 current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. 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, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the U.S. Securities and Exchange Commission.

Investor Relations Contact:

Erayak Power Solution Group Inc.
Email: investor@erayakpower.com
Website: www.erayakpower.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When does RAYA's 1-for-10 reverse stock split take effect and trade post-split?

The reverse split takes effect and RAYA trades on a post-split basis beginning April 20, 2026. According to the company, Nasdaq trading will use a new CUSIP (G3109F129) for post-split Class A shares.

How many RAYA shares will be outstanding after the April 20, 2026 reverse split?

After the reverse split, the company expects approximately 978,474 Class A and 4,091 Class B shares outstanding. According to the company, those figures reflect issued and outstanding shares post-combination.

What happens to fractional RAYA shares from the 1-for-10 reverse split?

No fractional shares will be issued; fractional entitlements will be rounded up to the nearest whole share. According to the company, shareholders will receive rounded whole shares automatically without action required.

Why did Erayak (RAYA) implement a 1-for-10 reverse stock split?

The reverse split is intended to increase the market price per share to allow the company to maintain its Nasdaq listing. According to the company, this action was approved by shareholders and the board.

Will RAYA shareholders need to exchange physical certificates after the reverse split?

Shareholders holding physical certificates may surrender them to the transfer agent for adjustment after the split. According to the company, VStock Transfer LLC will act as exchange agent and handle certificate exchanges.