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NEW YORK - Electric vehicle company Fly-E Group, Inc. (NASDAQ:FLYE) announced Wednesday it will implement a one-for-five reverse stock split effective July 7, 2025, when markets open. The announcement comes as the company’s stock trades at $0.98, having lost over 83% of its value in the past year, according to InvestingPro data.
The reverse split, which has been approved by both stockholders and the board of directors, will automatically convert every five pre-split shares into one share of common stock, while maintaining the same par value per share.
As a result of the split, Fly-E’s outstanding shares will decrease from 53,183,053 to approximately 10,636,611. The company will continue trading on the Nasdaq Capital Market under the symbol "FLYE" but with a new CUSIP number: 343927208.
The company stated the reverse split is intended to increase its market price per share to maintain Nasdaq listing requirements and potentially attract institutional investors.
Proportionate adjustments will be made to the exercise price and number of shares for outstanding warrants, as well as to shares reserved for the company’s equity incentive plans. Any fractional shares resulting from the split will be rounded up to the nearest whole share.
Fly-E Group specializes in designing, installing, selling, and renting electric motorcycles, bikes, and scooters under the "Fly E-Bike" brand. The company’s transfer agent, VStock Transfer, LLC, will serve as the exchange agent for the reverse split.
This announcement is based on a press release statement issued by the company.
In other recent news, Fly-E Group, Inc. announced the pricing of its latest public offering, which includes 28,595,553 shares of common stock and warrants to purchase additional shares. The offering aims to raise approximately $6.94 million in gross proceeds, with each share priced at $0.2428. The company plans to use the net proceeds for purchasing inventory, production costs, and general working capital. Additionally, Fly-E Group has been granted a 180-day extension to meet Nasdaq’s minimum bid price requirement. The company was initially notified that its stock had closed below the $1.00 minimum for 31 consecutive business days. To maintain its listing, Fly-E Group must now achieve a closing bid price of at least $1.00 for 10 consecutive trading days by September 29, 2025. The company is considering options, such as a potential reverse stock split, to meet these requirements. American Trust Investment Services, Inc. is serving as the exclusive placement agent for the public offering.
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