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ERAYAK Shares Plunge 28.7% Amid $7M Direct Offering and 220-for-1 Reverse Split

NASDAQ

RAYA

September 25, 2025 | 2:18pm
ERAYAK POWER SOLUTION GROUP INC
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As of September 25, 2025 2:18pm

Introduction

ERAYAK Power Solution Group Inc (NASDAQ: RAYA) is a manufacturer, designer, and exporter of portable power equipment. Founded in 2004, the company’s product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, as well as custom-designed power solutions. These products serve agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living applications.

Corporate Structure

With a workforce of approximately 201–500 employees, ERAYAK conducts research and development, manufacturing, and both wholesale and retail distribution. The company operates through subsidiaries in China, Australia, Poland, the United Kingdom, and Germany. ERAYAK emphasizes rigorous product testing, customer support, and supply chain management to support its global operations.

Portable power

Portable power by Ady TeenagerInRO

Developments and News

  • August 1, 2025: ERAYAK closed a registered direct offering, issuing 107,692,307 Class A shares at $0.065 per share, generating gross proceeds of approximately $7 million before fees.
  • September 8, 2025: At an Extraordinary General Shareholders Meeting, shareholders approved a reverse stock split at a ratio of 220-for-1, along with amendments to the company’s articles of association. Voting results for the reverse split were 189,092,325 votes in favor, 9,257,182 against, and 258,849 abstentions.
  • September 24, 2025: ERAYAK filed Form 6-K announcing that the reverse split will be effective on September 30, 2025. The Company’s Class A shares will trade on a split-adjusted basis under the ticker “RAYA” on the Nasdaq Capital Market, with a new CUSIP of G3109F111.
  • September 25, 2025: Shares closed at $0.0507, down 28.69% on a volume of 18,799,359.

Financial and Strategic Analysis

As of September 25, 2025, ERAYAK’s share price of $0.0507 reflects a 52-week range of $0.0350 to $3.3500. Key trailing-twelve-month metrics include:
• Price/Sales: 0.06
• Price/Book: 0.53
• Enterprise Value/Revenue: 0.61
• Profit Margin: –3.68%
• Return on Assets: –2.23%
• Return on Equity: –4.77%
• Revenue: $30.3 million
• Net Income: –$1.12 million
• Total Cash: $0.53 million
• Total Debt/Equity: 32.5%
• Levered Free Cash Flow: –$16.6 million

The August 1 share issuance improved the company’s cash position by approximately $7 million before expenses. The 220-for-1 reverse split, effective September 30, 2025, is intended to consolidate the share base and maintain Nasdaq listing standards. Craft Capital Management LLC served as placement agent for the direct offering, and the offering was completed under a Form F-3 shelf registration.

Market Position and Industry Context

ERAYAK competes in the portable power generation market alongside established inverter and generator manufacturers. The company’s products target outdoor enthusiasts, homeowners, and commercial operators requiring backup or mobile power. ERAYAK’s global footprint spans Asia, Europe, and North America. With a beta of 0.59, the stock has exhibited increased weekly volatility—rising from 25% to 42% over the past year—compared with the broader U.S. market. Average daily trading volume over the past three months is approximately 66 million shares, indicating active investor interest. Quality control and customer-focused content marketing, including maintenance guides and product comparisons, are integral to ERAYAK’s brand strategy.

TL;DR

As of September 25, 2025, ERAYAK shares traded at $0.0507, down 28.69% amid high volume. On August 1, the company closed a $7 million direct offering at $0.065 per share. Shareholders approved a 220-for-1 reverse split effective September 30, 2025, consolidating the equity structure. Market participants will monitor post-split trading dynamics and how the capital infusion supports operations and compliance with Nasdaq requirements.

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