Fly-E Group sets price for public stock and warrant offering

NEW YORK - Fly-E Group, Inc. (NASDAQ:FLYE), a company specializing in smart electric transportation solutions, has announced the pricing of its latest public offering. Currently trading at $0.49, significantly below its 52-week high of $7.62, InvestingPro analysis suggests the stock is currently undervalued. The offering includes 28,595,553 shares of common stock and accompanying warrants to purchase additional shares, with the aim to raise approximately $6.94 million in gross proceeds.

Each share of common stock is being offered at $0.2428, bundled with two warrants. These warrants are immediately exercisable at $0.2913 per share, a 120% premium to the offering price, and will expire five years from the issue date. The offering is scheduled to close on or about June 3, 2025, contingent on customary closing conditions. According to InvestingPro data, the company faces significant financial challenges, with a concerning cash burn rate and short-term obligations exceeding liquid assets. Get access to 8 more crucial ProTips about FLYE’s financial health with an InvestingPro subscription.

The net proceeds from this offering are intended for the purchase of inventory and production costs for Fly-E’s range of electric vehicles, as well as for general working capital purposes. With current revenue of $28.55 million and a gross profit margin of approximately 43%, the company’s working capital needs are substantial. American Trust Investment Services, Inc. has been appointed as the exclusive placement agent for the transaction.

The securities are offered through a registration statement on Form S-1, which the Securities and Exchange Commission (SEC) declared effective on May 15, 2025. A final prospectus concerning the offering is to be filed with the SEC and will be accessible on its website.

Fly-E Group, which operates under the brand "Fly E-Bike," asserts its commitment to promoting eco-friendly transportation options. The company’s product lineup includes electric motorcycles, bikes, and scooters designed to support sustainable, active lifestyles.

This press release contains forward-looking statements that involve risks and uncertainties. With a year-to-date price decline of 42% and an EBITDA of -$0.59 million in the last twelve months, Fly-E has cautioned that these statements are not guarantees of future performance and that actual results may differ materially from those projected. The company has directed investors to the risk factors outlined in its SEC filings, including its most recent Annual Report on Form 10-K and the Registration Statement for this offering. For comprehensive financial analysis and exclusive insights, visit InvestingPro to access detailed financial metrics, Fair Value calculations, and expert recommendations.

The information provided in this article is based on a press release statement from Fly-E Group, Inc.

In other recent news, Fly-E Group has been granted an extension to meet Nasdaq’s minimum bid price requirement. The company now has until September 29, 2025, to maintain a closing bid price of at least $1.00 per share for ten consecutive trading days. This extension follows an earlier notification that Fly-E Group’s stock had fallen below the required minimum bid price. In addition to this development, Fly-E Group is facing legal challenges as UL Solutions has filed a lawsuit against the company. The lawsuit alleges that Fly-E Group misused the UL Mark on its e-mobility products, claiming they were UL Certified without proper testing. UL Solutions is seeking a permanent injunction and damages for trademark infringement and deceptive business practices. These recent developments highlight ongoing challenges for Fly-E Group, both in terms of regulatory compliance and legal disputes.

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