Fed Governor Cook sues Trump over firing attempt
The board of directors of AYRO, Inc. (NASDAQ:AYRO), a micro-cap company with a market value of $3.91 million, declared a dividend of one preferred share purchase right for each outstanding share of company stock, according to a statement in a SEC filing on Thursday. The dividend is scheduled to be distributed on August 11, 2025, to shareholders of record as of the close of business on that date. InvestingPro analysis shows the company maintains a strong liquidity position with a current ratio of 2.2, despite not being profitable in the last twelve months.
Each right will initially entitle the holder to purchase one one-thousandth of a share of Series A Junior Participating Preferred Stock at a price of $30 per one one-thousandth of a share, subject to adjustment. AYRO has reserved 100,000 shares of this preferred stock for issuance upon exercise of the rights. With the current stock price at $7.17 and the company’s next earnings report due on August 13, 2025, investors seeking deeper insights can access additional financial metrics and analysis through InvestingPro, which offers 15+ additional exclusive tips about AYRO’s financial health and prospects.
The rights are governed by a Rights Agreement entered into between AYRO and Equiniti Trust Company LLC, acting as rights agent, on July 31, 2025. The company also filed a Certificate of Designations for the preferred stock with the Secretary of State of Delaware on August 1, 2025. According to InvestingPro data, AYRO holds more cash than debt on its balance sheet, providing financial flexibility for this corporate action.
The rights will become exercisable ten business days after a public announcement that a person or group has acquired 10% or more of AYRO’s outstanding shares, or has announced an intention to do so. For passive investors, the threshold is 20%. Prior to this distribution date, the rights will trade together with the common stock and will not be exercisable or separately transferable.
The rights are set to expire on July 31, 2028, unless earlier redeemed, exchanged, or terminated under the terms of the agreement. If shareholder approval is not obtained by the first day after AYRO’s 2026 annual meeting, the rights will also expire.
The preferred stock associated with the rights carries voting, dividend, and liquidation preferences. Each share of preferred stock will be entitled to 1,000 votes and preferential dividends and liquidation payments, as described in the certificate of designations.
The rights agreement and charter amendments were detailed in the company’s Form 8-K filed with the Securities and Exchange Commission.
In other recent news, AYRO, Inc. has announced several significant developments. The company has regained compliance with Nasdaq’s minimum bid price rule, as confirmed by Nasdaq, effectively closing the matter. Additionally, AYRO is exploring strategic alternatives, including initiatives focused on stablecoin technology, to enhance stockholder value. This exploration is supported by a cash position of approximately $15.4 million as of March 31, 2025, providing the company with the flexibility to pursue these opportunities. In a notable move, Diveroli Investment Group has acquired a 9.9% ownership stake in AYRO, aligning with the company’s exploration of new strategic directions. Furthermore, AYRO stockholders have approved a substantial increase in authorized shares from 200 million to 1.2 billion. This amendment was filed with the Secretary of State of Delaware. The stockholder meeting also resulted in the election of six directors and the ratification of CBIZ (NYSE:CBZ) CPAs P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.