Erayak Power Solution Group Inc. has announced an extraordinary general meeting of shareholders to discuss a reverse stock split of Class A and Class B ordinary shares at a ratio between 1-for-120 and 1-for-220. Shareholders of record as of August 1, 2025, are entitled to vote, and the board recommends voting in favor of both proposals. The meeting is scheduled for August 29, 2025.
Erayak Power Solution Group Inc. (NASDAQ: RAYA) has scheduled an extraordinary general meeting of shareholders to discuss a proposed reverse stock split of Class A and Class B ordinary shares. The stock split will be implemented at a ratio between 1-for-120 and 1-for-220. Shareholders of record as of August 1, 2025, are entitled to vote, and the board recommends voting in favor of both proposals. The meeting is set for August 29, 2025 [1].
The reverse stock split aims to reduce the number of outstanding shares and potentially increase the stock's price. This move follows Erayak's recent $7 million registered direct offering, which raised significant capital for the company's expansion and operational upgrades [2]. The offering involved the sale of 107,692,307 Class A ordinary shares at $0.065 per share, significantly diluting existing shareholders [3].
The proposed reverse stock split is part of Erayak's strategy to address dilution concerns and improve the company's financial health. However, the success of this initiative will depend on how effectively Erayak can leverage the newly acquired capital to drive growth and profitability.
Investors should carefully consider the implications of the reverse stock split, as it may affect their voting rights and potential returns. The company's ability to execute its strategic initiatives, such as the expansion of its Wenzhou generator automation plant, will be critical in determining the long-term success of Erayak [1].
References:
1. [https://www.ainvest.com/news/erayak-power-solution-7-million-offering-strategic-inflection-point-red-flag-long-term-investors-2508/](https://www.ainvest.com/news/erayak-power-solution-7-million-offering-strategic-inflection-point-red-flag-long-term-investors-2508/)
2. [https://www.investing.com/news/company-news/erayak-power-solution-group-raises-7-million-in-share-offering-93CH-4164192](https://www.investing.com/news/company-news/erayak-power-solution-group-raises-7-million-in-share-offering-93CH-4164192)
3. [https://www.stocktitan.net/news/RAYA/erayak-power-solution-group-inc-announces-closing-of-7-million-k2al5bzzfpli.html](https://www.stocktitan.net/news/RAYA/erayak-power-solution-group-inc-announces-closing-of-7-million-k2al5bzzfpli.html)
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