AYRO Closes $10.0 Million Registered Direct Offering
Financing was strategically led by an investment arm of Wanxiang America
AUSTIN, Texas, Nov. 24, 2020 (GLOBE NEWSWIRE) -- AYRO, Inc. (Nasdaq: AYRO) (“AYRO” or the “Company”), a manufacturer of light-duty, urban, and short-haul electric vehicles (EVs), today announces the closing of its previously announced registered direct offering for an aggregate of $10 million in gross proceeds with Carnegie Hudson Resources, an investment arm of Wanxiang America, along with several existing institutional investors.
Wanxiang America is a subsidiary of Wanxiang Group, a Chinese conglomerate and owner of Karma Automotive and A123 Systems, a developer of EV batteries and supplier to automotive manufacturers worldwide. The Karma Automotive Innovation and Customization Center (KICC) recently signed a strategic manufacturing, engineering, and design partnership with AYRO.
“We are thrilled with the strategic investment in AYRO by CHR Capital, an investment arm of Wanxiang America. This strategic investment further expands our relationship with Karma and provides better access to Wanxiang’s global supply-chain, as well as A123’s leadership in automotive lithium battery technology,” commented AYRO’s Chief Executive Officer Rod Keller. “COVID-19 is changing the world, and the need for cost-effective delivery EVs has never been bigger and will only continue to grow. This important investment should help AYRO accelerate our mission to provide next generation, purpose-built EV solutions designed for the urban, last-mile, and food delivery markets. We believe that this strategic investment by Wanxiang and existing investors is a testament to our future potential. With this support, we plan to continue to build strong fundamentals, expand production capacity beyond our current 600 cars per month, drive stronger market penetration, and position AYRO to meet ever growing demand with a variety of EV products across our value chain. In particular, we believe that this capital can help us drive growth with our partners and customers that include Karma, Club Car, and Gallery Carts, among others.”
Spartan Capital Securities, LLC & Palladium Capital Group, LLC acted as advisors to the offering.
About AYRO, Inc.
Texas-based AYRO, Inc., manufactures purpose-built electric vehicles to enable sustainable fleets. With rapid, customizable deployments that meet specific buyer needs, AYRO’s agile EVs are an eco-friendly microdistribution alternative to gasoline vehicles. The AYRO 411 Club Car is the only zero-emission, light duty EV known to AYRO that can be optimized for the needs of any sustainable fleet, while the AYRO 311 EV can be configured for a variety of urban last-mile transportation needs. AYRO innovates with speed, discipline, and agility and was founded in 2017 by entrepreneurs, investors, and executives with a passion for creating sustainable urban electric vehicle solutions for micromobility. For more information, visit: www.ayro.com
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," "project," "will," "would" and their opposites and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: we have a history of losses and has never been profitable, and we expect to incur additional losses in the future and may never be profitable; the market for our products is developing and may not develop as expected; our business, results of operations and financial condition may be adversely impacted by public health epidemics, including the recent COVID-19 outbreak; our limited operating history makes evaluating its business and future prospects difficult and may increase the risk of any investment in its securities; we 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 our electric vehicles; the markets in which we operate are highly competitive, and we may not be successful in competing in these industries; we rely 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; we may become subject to product liability claims, which could harm our financial condition and liquidity if we are 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 our business; we 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 our stockholders' ownership interests, and our long-term capital requirements are subject to numerous risks; we may fail to comply with environmental and safety laws and regulations; and we are subject to governmental export and import controls that could impair our ability to compete in international market due to licensing requirements and subject us to liability if we are not in compliance with applicable laws. A discussion of these and other factors is set forth in our registration statement on Form S-4 filed on February 14, 2020, as amended, and our subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made, and we disclaim any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.
|For media inquiries:||For investor inquiries:|
|Liz Crumpacker||Joseph Delahoussaye III|
|for AYRO, Inc.||for AYRO Inc.|
Released November 24, 2020