AYRO Announces $22 Million Offering Led By Existing Investors

ROUND ROCK, TX / ACCESSWIRE / August 8, 2023 / AYRO, Inc. (NASDAQ:AYRO) ("AYRO" or the "Company"), a designer and manufacturer of electric, purpose-built delivery vehicles and solutions for micro distribution, micro-mobility, and last-mile delivery, announces that it has executed a securities purchase agreement to raise gross proceeds of approximately $22 million in a private placement of convertible preferred stock and warrants with existing investors. The offering is expected to close on August 10, 2023, subject to the satisfaction of customary closing conditions.

"This financing is of particular strategic value for AYRO as it enhances our cash position to execute on a number of our key programs. It should ensure we can complete the development, manufacturing ramp up and marketing of the Vanish, our lead low speed electric vehicle (LSEV) and meet its anticipated growth in demand. It also should provide additional cash for exploring other initiatives including continuing R&D into newer LSEV models as well as the possibility of acquiring additional assets to enhance shareholder value should such opportunities present themselves," commented Tom Wittenschlaeger, AYRO's CEO.

Preferred Stock and Warrants

In a transaction with expected gross proceeds of $22 million, the Company has executed a securities purchase agreement for a private placement of preferred stock with a conversion price of $1.00 per share, subject to adjustment, and warrants to acquire up to an aggregate amount of 22,000,000 additional shares of the Company's common stock. The preferred stock will have a stated value of $1,000 per share, and holders thereof will be entitled to cumulative dividends of 8% per annum on the stated value, payable quarterly in arrears. The warrants will be exercisable immediately at an exercise price of $1.00 per share and expire five years from the date of issuance. The preferred stock conversion price and warrant exercise price of $1.00 per share represents an approximately 39% premium to the closing share price on August 7, 2023. The full conversion of the preferred stock and the full exercise of the warrants are subject to stockholder approval. For a full description of the terms of this financing, please see the Company's Current Report on Form 8-K that was filed with the U.S. Securities and Exchange Commission today, including the attached exhibits.