Ruanyun Edai Technology Inc. Establishes $100 Million Equity Purchase Facility with ARC Group International to Enhance Financial Flexibility

Rhea-AI Summary

Ruanyun Edai Technology (Nasdaq: RYET) entered a $100 million equity purchase facility with ARC Group International on Dec 18, 2025. The facility runs for 36 months and gives Ruanyun the right, but not the obligation, to sell ordinary shares to ARC from time to time, subject to customary conditions including the effectiveness of a resale registration statement.

The company retains full discretion over timing and amounts, currently has no immediate plans to draw, and says the facility is intended to provide optional liquidity to support investment in educational AI platforms, expand partnerships, manage timing and navigate market volatility.

Positive

• $100M committed equity purchase facility available over 36 months
• Company retains full discretion; no obligation to issue shares
• Facility intended to fund AI platform investment and partnership growth

Negative

• Use of the facility would issue shares and could dilute existing shareholders
• Access contingent on effectiveness of a resale registration statement, which may delay funding

Key Figures

Equity purchase facility $100 million Size of new equity purchase facility with ARC Group International

Facility term 36 months Period over which shares may be sold under the facility

FY2025 revenue $6.7 million Total revenue for FY2025, down 27.0%

FY2025 gross profit $3.8 million Gross profit for FY2025, up 29.1%

FY2025 gross margin 56.7% Gross margin for FY2025 (vs 32.1% prior year)

Net loss FY2025 $0.5 million Net loss narrowed from $2.1 million prior year

U.S. IPO proceeds $15 million Capital raised in U.S. IPO mentioned in FY2025 results

S-8 registered shares 6,500,000 shares Ordinary shares registered for 2025 Equity Incentive Plan

Market Reality Check

$1.18 Last Close

Volume Volume 57,735 vs 20-day average 83,000 (about 0.7x recent activity). normal

Technical Price 1.05 is trading below the 200-day MA of 4.12, after a -7.08% day.

Peers on Argus

Peers showed mixed moves: AACG +1.7%, SKIL +6.28% while GNS -3%, FCHL -3.85%, YOUL -4.23%, indicating stock-specific dynamics for RYET.

Common Catalyst Select peers had their own headlines (e.g., partnerships, listings), but no clear sector-wide financing theme.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 17	Product launch	Positive	-0.2%	Commercial release of Cogni AI for multimodal visual understanding.
Jul 31	Annual earnings	Neutral	-4.7%	FY2025 results with lower revenue but improved margins and loss narrowing.
Jul 11	Strategic partnership	Positive	+31.4%	Three-year HanLink partnership with Confucius Institute at PSU in Saudi Arabia.

Pattern Detected

Recent history shows RYET sometimes declining on positive or mixed updates, with one strong rally on a strategic partnership.

Recent Company History

Over recent months, RYET has combined product, financial, and partnership milestones with mixed share-price reactions. On July 11, 2025, a strategic HanLink partnership in Saudi Arabia saw the stock gain 31.38%. On July 31, 2025, FY2025 results showed revenue down but margins and losses improving, yet shares fell 4.71%. The November 17, 2025 commercial launch of Cogni AI produced a marginal -0.19% move. Today’s flexible equity facility fits this pattern of active capital and product development.

Market Pulse Summary

The stock surged +20.9% in the session following this news. A strong positive reaction aligns with investors focusing on added financial flexibility from the $100 million equity purchase facility while the stock trades well below its 52-week high of 21. Historical data show one large gain of 31.38% on a strategic partnership, but other positive or mixed updates saw declines. Investors would need to weigh potential dilution from future share sales against prior improvements in gross margin to judge sustainability.

Key Terms

equity purchase facility financial

"entered into a $100 million equity purchase facility with ARC Group International Ltd."

An equity purchase facility is an arrangement in which a company can sell newly issued shares to a counterparty or through a broker over time to raise cash as needed, similar to having a standby line at the bank but paid by selling pieces of the company instead of borrowing. It matters to investors because it provides flexible funding without taking on debt, but it can dilute existing shareholders and affect share price depending on how and when the shares are sold.

resale registration statement regulatory

"subject to customary conditions, including the effectiveness of a resale registration statement."

A resale registration statement is a document filed with regulators that allows existing shareholders to sell their shares to the public. It provides the necessary legal approval and information for these shares to be resold on the market, helping to increase the availability of shares for trading. For investors, it signals that shares held by current owners can be offered for sale, potentially affecting share prices and market liquidity.

AI-generated analysis. Not financial advice.

Nanchang, China, Dec. 18, 2025 (GLOBE NEWSWIRE) -- Ruanyun Edai Technology Inc. (“Ruanyun” or the “Company”) (Nasdaq: RYET), an education-focused artificial intelligence company delivering AI-enabled learning, assessment, and digital education solutions globally, today announced that it has entered into a $100 million equity purchase facility with ARC Group International Ltd. (“ARC”), a global investment bank.

Under the terms of the agreement, the Company has the right, but not the obligation, to sell ordinary shares to ARC from time to time over a 36-month period, subject to customary conditions, including the effectiveness of a resale registration statement. The Company retains full discretion over the timing and amount of any issuances and is not required to utilize the facility.

Supporting an Educational AI Platform Through Market Cycles

Ruanyun focuses on the development and deployment of AI-driven educational technologies designed to support teaching, learning, assessment, and academic administration across institutional and digital learning environments. The Company’s solutions integrate artificial intelligence, data analytics, and cloud-based platforms to enhance instructional efficiency, personalize learning experiences, and support educational outcomes.

As a recently listed public company operating in the education technology and artificial intelligence sectors, Ruanyun believes that maintaining access to discretionary and flexible capital is an important component of prudent financial management, particularly during the period prior to eligibility for broader shelf-based financing tools.

The equity purchase facility is intended to provide the Company with optional liquidity to:

• support continued investment in its educational AI platforms,
  
  
• expand institutional and platform partnerships,
  
  
• manage regulatory and operational timing considerations,
  
  
• and navigate market volatility as the Company scales its technology offerings.
  
  

The Company emphasizes that the facility does not obligate it to issue shares and that any utilization would be selective, measured, and based on market conditions and capital requirements. The Company currently has no immediate plans to draw on the facility.

Management Commentary

Ms. Yan Fu, Chief Executive Officer of Ruanyun, commented:

“Ruanyun is focused on applying artificial intelligence in practical, scalable ways within education, supporting institutions, educators, and learners through data-driven digital solutions. As we continue to develop our educational AI platforms, maintaining financial flexibility is an important part of executing our strategy responsibly as a public company.

This facility provides us with optional access to capital without imposing any obligation to issue shares, enabling us to remain disciplined in how we manage liquidity while continuing to invest in our technology and long-term growth.”

Mac McDonald, Director of Asset Management of ARC Group International, added:

“ARC is pleased to establish this equity purchase facility with Ruanyun. As a global investment bank, we focus on providing flexible, long-term capital solutions to innovative public companies, particularly those operating at the intersection of technology and education.

Ruanyun’s focus on educational AI and digital learning platforms aligns well with ARC’s strategy of supporting companies that deliver mission-critical technologies through compliant, discretionary financing solutions designed to support sustainable growth across market cycles.”

About Ruanyun Edai Technology Inc.

Ruanyun Edai Technology Inc. is an innovative AI-driven education technology company dedicated to develop and deliver AI-enabled digital education platforms. By leveraging proprietary AI-powered solutions, the Company provides intelligent learning tools, assessment platforms, and adaptive learning systems that enhance academic performance and streamline educational processes. Committed to modernizing education, the Company empowers schools, teachers, and students with cutting-edge teaching, learning, and evaluation tools through the integration of AI and the internet, fostering a more efficient and effective learning model. For more information, please visit: http://www.ruanyun.net/, https://investors.ruanyun.net/.

About ARC Group International Ltd.

ARC Group is a global investment bank, asset manager and management consultancy firm established in 2015. The firm specializes in capital markets, mergers & acquisitions, strategic advisory, and asset management, supporting clients through complex cross-border transactions and offering tailored financing solutions. ARC Group operates across twelve countries and three continents, providing expertise in sectors ranging from technology and digital assets to consumer goods and advanced industries. For more information, visit www.arc-group.com.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Investor Relations

WFS Investor Relations Inc.
services@wfsir.com

FAQ

What is the size and term of Ruanyun's equity purchase facility (RYET)?

Ruanyun established a $100 million equity purchase facility with ARC that may be used over a 36-month period.

Does the RYET facility require the company to issue shares to ARC?

No; the company has the right but not the obligation to sell ordinary shares and retains full discretion on timing and amounts.

When was the Ruanyun and ARC facility announced for RYET?

The facility was announced on December 18, 2025.

What conditions must be met before Ruanyun can draw on the RYET facility?

Utilization is subject to customary conditions, including the effectiveness of a resale registration statement.

Will using the RYET facility dilute existing Ruanyun shareholders?

Yes; any issuance of ordinary shares under the facility would increase share count and could dilute existing shareholders.

Does Ruanyun plan to immediately draw on the $100M facility (RYET)?

The company indicated it currently has no immediate plans to draw on the facility.