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WENZHOU, China - Erayak Power Solution Group Inc. (NASDAQ:RAYA), a power products manufacturer with a market capitalization of $7.3 million and concerning financial health metrics according to InvestingPro, announced Tuesday it received a delisting determination letter from Nasdaq on September 3, citing non-compliance with listing requirements.
The notice stated that RAYA’s shares had a closing bid price of $0.10 or less for ten consecutive trading days, violating Nasdaq’s Low Priced Stocks Rule. Additionally, the company’s shares traded below $1 for 30 consecutive business days, failing to meet minimum bid price requirements. InvestingPro data shows the stock has plummeted 97% year-to-date, with its current price representing a dramatic fall from its 52-week high of $3.35.
Unlike standard procedures that typically provide companies 180 days to regain compliance with minimum bid price rules, Nasdaq expedited the delisting process due to the persistent sub-$0.10 trading price.
Erayak has until September 10 to request a hearing before the Nasdaq Hearings Panel to appeal the determination. If no appeal is filed, trading of the company’s securities will be suspended on September 12, and Nasdaq will file for removal of the company’s listing.
The company stated it intends to request a hearing before the deadline, which would temporarily stay the suspension pending the panel’s decision. Erayak is considering options to regain compliance, including potentially seeking shareholder approval for a reverse stock split.
Erayak Power Solution Group manufactures power products including inverters, generators, battery chargers, and other electrical equipment primarily used in agricultural and industrial vehicles, RVs, and outdoor living products. Despite revenue growth of 49% in the last twelve months, InvestingPro analysis reveals the company operates with significant debt burden and negative EBITDA of -$1.02 million. InvestingPro subscribers have access to 16 additional key insights about RAYA’s financial position and market performance.
The information in this article is based on a company press release.
In other recent news, Erayak Power Solution Group Inc. announced a registered direct offering, raising approximately $7 million through the sale of 107,692,307 Class A ordinary shares. The shares were sold at a price of $0.065 each, which represents a significant discount from the previous trading price. This move is expected to dilute existing shareholders. Additionally, the offering includes pre-funded warrants with an exercise price of $0.0001 per share. Meanwhile, Erayak Power Solution Group has filed amended proxy materials for its upcoming extraordinary general meeting of shareholders. The new documents replace those previously submitted on August 4, 2025, and include a revised proxy statement and updated form of proxy card. These developments highlight recent strategic decisions by the company to secure funding and update shareholder meeting materials.
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