AYRO, Inc. Announces $5.5 Million Registered Direct Offering
June 17 2020 - 9:00AM
AYRO, Inc. (the “Company”) (NASDAQ: AYRO), a manufacturer of
light-duty, emissions-free electric vehicles, today announced that
it has entered into definitive agreements with several
institutional and accredited investors for the purchase and sale of
2,200,000 shares of the Company’s common stock, at a purchase price
of $2.50 per share, in a registered direct offering. The
closing of the offering is expected to occur on or about June
19, 2020, subject to the satisfaction of customary closing
conditions.
The gross proceeds to the Company from this
offering are expected to be approximately $5.5 million, before
deducting placement agent fees and other offering expenses payable
by the Company. The Company intends to use the net proceeds from
this offering for working capital and general corporate
purposes.
The shares of common stock are being offered by
the Company pursuant to a "shelf" registration statement on Form
S-3 (File No. 333-227858) previously filed with the Securities and
Exchange Commission (the "SEC") on October 16, 2018, and
declared effective by the SEC on November 9, 2018. The
offering of the securities is made only by means of a prospectus,
including a prospectus supplement, forming a part of the effective
registration statement. A final prospectus supplement and
accompanying prospectus relating to the securities being offered
will be filed with the SEC. Electronic copies of the final
prospectus supplement and accompanying prospectus may be obtained,
when available, on the SEC's website
at http://www.sec.gov.
This press release shall not constitute an offer
to sell or a solicitation of an offer to buy these securities, nor
shall there be any sale of these securities in any state or other
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of any such state or other jurisdiction.
About AYRO
Texas-based AYRO, Inc., designs and delivers
compact, emissions-free electric fleet solutions for use within
urban and short-haul markets. Capable of accommodating a broad
range of commercial and consumer requirements, AYRO's vehicles are
the emerging leaders of safe, affordable, efficient and sustainable
logistical transportation. AYRO was founded in 2017 by
entrepreneurs, investors, and executives with a passion to create
sustainable urban electric vehicle solutions for Campus Management,
Last Mile Delivery, Urban Commuting, and Closed Campus Transport.
For more information, visit: www.ayro.com
To view our vehicles, visit:
https://ayro.com/media
Forward-Looking Statements
This press release may contain forward-looking
statements. These forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to be materially
different from any expected future results, performance, or
achievements. Words such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “may,” “plan,” “will,” “would” and other
similar expressions are intended to identify these forward-looking
statements and include statements about the completion of the
registered direct offering, the satisfaction of customary closing
conditions related to the registered direct offering and the
intended use of net proceeds from the registered direct offering.
Important factors that could cause actual results to differ
materially from those indicated by such forward-looking statements
include, without limitation: AYRO has a history of losses and has
never been profitable, and AYRO expects to incur additional losses
in the future and may never be profitable; the market for AYRO’s
products is developing and may not develop as expected; AYRO’s
limited operating history makes evaluating its business and future
prospects difficult and may increase the risk of any investment in
its securities; AYRO may experience lower-than-anticipated market
acceptance of its vehicles; developments in alternative
technologies or improvements in the internal combustion engine may
have a materially adverse effect on the demand for AYRO’s electric
vehicles; the markets in which AYRO operates are highly
competitive, and AYRO may not be successful in competing in these
industries; AYRO relies on and intends to continue to rely on a
single third-party supplier for the sub-assemblies in
semi-knocked-down for all of its vehicles; AYRO may become subject
to product liability claims, which could harm AYRO’s financial
condition and liquidity if AYRO is not able to successfully defend
or insure against such claims; increases in costs, disruption of
supply or shortage of raw materials, in particular lithium-ion
cells, could harm AYRO’s business; AYRO will be required to raise
additional capital to fund its operations, and such capital raising
may be costly or difficult to obtain and could dilute AYRO
stockholders’ ownership interests, and AYRO’s long term capital
requirements are subject to numerous risks; AYRO may fail to comply
with environmental and safety laws and regulations; and AYRO is
subject to governmental export and import controls that could
impair AYRO’s ability to compete in international market due to
licensing requirements and subject AYRO to liability if AYRO is not
in compliance with applicable laws. A discussion of these and other
factors with respect to AYRO is set forth in the registration
statement on Form S-4 filed by AYRO on February 14, 2020, as
amended. Forward-looking statements speak only as of the date they
are made and AYRO disclaims any intention or obligation to revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
Contacts:
Darrow AssociatesJordan
Darrow512-551-9296jdarrow@darrowir.com
Darrow AssociatesPeter
Seltzberg516-419-9915pseltzberg@darrowir.com
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