Erayak Power Solution Secures $7M in Registered Direct Offering

Erayak Power Solution Group Inc. (NASDAQ: RAYA), a manufacturer of power supply products based in Wenzhou, China, has announced a registered direct offering to raise approximately $7 million by selling 107.7 million Class A ordinary shares at $0.065 per share, with the transaction expected to close around August 1, 2025. The offering includes pre-funded warrants exercisable at $0.0001 per share, providing institutional investors flexibility in investment timing, and is being managed exclusively by Craft Capital Management as placement agent. This capital raise comes amid Erayak's challenges, including a significant 90% year-to-date stock decline, an operating margin of -3.66%, a net margin of -3.68%, and an Altman Z-Score signaling potential financial distress. The company operates internationally, primarily in China, and produces products such as sine wave and off-grid inverters, generators, batteries, and smart chargers, mainly serving agricultural, industrial, and outdoor markets. While the offering will strengthen Erayak's financial position, it will also result in significant dilution for existing shareholders, prompting investors to carefully evaluate management’s plans for deploying the proceeds. The transaction is conducted under a shelf registration statement previously approved by the SEC, with related documents available on the SEC website.