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AYRO, Inc. (NASDAQ:AYRO), a small-cap company with a market capitalization of $3.94 million, reported material modifications to the rights of its security holders and amendments to its articles of incorporation, according to a statement filed with the Securities and Exchange Commission. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet, though it faces challenges with rapidly declining revenues.
On August 6, the company filed a Certificate of Designations with the Secretary of State of Delaware to create a new Series I Convertible Preferred Stock. Under a previously disclosed agreement, AYRO agreed to sell 7,000 shares of Series I Preferred Stock, each with a par value of $0.0001 and a stated value of $1,000, to certain accredited investors. The Series I shares are initially convertible into up to 875,000 shares of AYRO common stock at a conversion price of $8.00 per share. The investors also received warrants to acquire up to 875,000 shares of common stock at an exercise price of $8.00 per share. This financing comes at a critical time, as InvestingPro analysis shows the company is quickly burning through cash, despite maintaining a healthy current ratio of 2.2.
Also on August 6, AYRO filed a Certificate of Amendment to the Certificate of Designations for its Series H-7 Preferred Stock. This amendment, as described in the filing, extends the maturity date of the Series H-7 shares to February 4, 2027, revises payment dates and amounts for dividends and installment payments, modifies the definition of “Excluded Securities,” and updates the schedule of installment dates.
These changes were made following an agreement with holders of the Series H-7 Preferred Stock, who consented to the issuance of the new Series I Preferred Stock and related amendments.
The information in this article is based on a press release statement included in the company’s Form 8-K SEC filing.
In other recent news, AYRO, Inc. has announced a significant investment strategy targeting the stablecoin industry, with plans to acquire $100 million in crypto tokens related to stablecoins. This initiative will be spearheaded by James Altucher, who has been appointed as the company’s new Digital Treasury Asset Manager. Additionally, the board of directors has approved a preferred share rights plan, which includes a dividend of one preferred share purchase right for each outstanding share of company stock, set to be distributed in August 2025. This move involves reserving 100,000 shares of Series A Junior Participating Preferred Stock for issuance upon exercise of the rights.
In terms of ownership changes, Diveroli Investment Group has acquired a 9.9% stake in AYRO, reflecting confidence in the company’s strategic direction, particularly in the realm of digital assets and stablecoin technology. AYRO has also regained compliance with Nasdaq’s minimum bid price rule, as confirmed by Nasdaq, closing the matter satisfactorily. The company continues to explore strategic alternatives, including initiatives focused on stablecoin technology, to enhance stockholder value. As of March 31, 2025, AYRO reported a cash position of approximately $15.4 million, indicating financial flexibility to pursue these strategic opportunities.
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