Fly-E Group, Inc. Announces Closing of its Initial Public Offering
Fly-E Group announced the closing of its initial public offering (IPO) of 2,250,000 shares at $4.00 per share, raising gross proceeds of $9 million before deducting underwriting discounts and expenses. The underwriters have a 30-day option to purchase an additional 337,500 shares. Fly-E's shares began trading on the Nasdaq under the symbol 'FLYE' on June 6, 2024. The funds will be used for inventory purchases, production costs, retail store expansion, technology, R&D, and general corporate purposes. The Benchmark Company was the sole book-running manager, and Hogan Lovells US LLP and Lucosky Brookman LLP acted as legal counsel. The registration statement became effective on May 14, 2024.
- Raised $9 million in gross proceeds from the IPO.
- Shares began trading on Nasdaq, increasing visibility.
- Funds to be used for inventory and production costs, potentially boosting operational capacity.
- Allocation for retail expansion, indicating growth strategy.
- Investment in technology and R&D, aiming at innovation.
- Benchmark Company as sole book-running manager adds credibility.
- Gross proceeds are before deducting underwriting discounts and expenses, potentially reducing net funds available.
- Potential dilution with underwriters' option to purchase additional 337,500 shares.
- Uncertainty in how effectively the funds will be deployed to achieve desired outcomes.
Insights
The closing of Fly-E Group's initial public offering (IPO) is a significant milestone for the company, raising
From an investor's standpoint, the IPO valuation is relatively modest at
Investors should be mindful of the company's burn rate, especially given the broad scope of planned expenditures. Monitoring quarterly financials closely will be important to assess whether Fly-E can effectively manage and allocate the proceeds to drive sustainable growth. The involvement of reputable firms like The Benchmark Company for underwriting and Hogan Lovells US LLP for legal counsel adds a layer of credibility to the offering.
Fly-E Group's entry into the public market comes at a time when the vehicle manufacturing sector is experiencing significant shifts towards electrification and innovation. The company's plan to allocate IPO proceeds towards inventory and production costs, retail expansion and R&D aligns well with industry trends. Investors should note that expanding retail stores indicates a direct-to-consumer strategy, which can potentially lead to higher margins compared to traditional dealership models, albeit with higher upfront costs.
The emphasis on technology and R&D suggests that Fly-E is aiming to stay competitive with other players in the market who are investing heavily in electric vehicles (EVs) and autonomous driving technologies. This is a positive sign, but investors should be cautious about execution risks, especially given the competitive and rapidly evolving nature of the market.
Overall, the successful IPO provides Fly-E with the needed capital to pursue its ambitious plans. However, the company's ability to stand out in a crowded market and maintain technological leadership will be critical factors to watch.
The completion of Fly-E Group's IPO is underpinned by compliance with regulatory requirements as indicated by the effective registration statement with the U.S. Securities and Exchange Commission (SEC) on May 14, 2024. The formal involvement of reputable legal firms such as Hogan Lovells US LLP and Lucosky Brookman LLP ensures adherence to legal standards and mitigates potential legal risks associated with the IPO process.
For retail investors, it's important to recognize that the issuance of the prospectus and the legal oversight provided by these firms help ensure transparency and regulatory compliance, which are critical factors in maintaining investor confidence. Moreover, the clear stipulation that this press release does not constitute an offer to sell or solicitation emphasizes adherence to securities laws, which is reassuring from a legal standpoint.
Investors should remain informed about ongoing legal compliance and any future filings that Fly-E Group may need to make, especially if they are considering long-term investments. Post-IPO, the company's adherence to reporting requirements and corporate governance standards will be pivotal in sustaining its market reputation and investor trust.
New York, N.Y., June 07, 2024 (GLOBE NEWSWIRE) -- Fly-E Group, Inc. (Nasdaq: FLYE) (“FLYE”) today announced the closing of its initial public offering of 2,250,000 shares of its common stock, par value
FLYE’s shares of common stock began trading on the Nasdaq Capital Market under the symbol “FLYE” on June 6, 2024.
The gross proceeds to FLYE from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, were
The Benchmark Company, LLC (“Benchmark”) was the sole book-running manager for the offering. Hogan Lovells US LLP acted as counsel to FLYE and Lucosky Brookman LLP acted as counsel to Benchmark in connection with the offering.
A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission and became effective on May 14, 2024. The proposed offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from The Benchmark Company, LLC, 150 East 58th Street, 17th Floor, New York, NY 10155, by telephone: (212) 312-6700, or by email at prospectus@benchmarkcompany.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Fly-E Group, Inc.
Fly-E Group, Inc. is an electric vehicle company that is principally engaged in designing, installing and selling smart electric motorcycles, electric bikes, electric scooters and related accessories under the brand “Fly E-Bike.” Our commitment is to encourage people to incorporate eco-friendly transportation into their active lifestyles, ultimately contributing towards building a more environmentally friendly future. For more information, please visit the Company’s website: https://investors.flyebike.com.
Cautionary Note Regarding Forward Looking Statements
This news release and statements of FLYE’s management in connection with this news release or related events contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expected”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve known and unknown risks, uncertainties and other factors, which may be beyond our control. In evaluating these forward-looking statements, you should consider various factors, including our ability to obtain additional funding to market our vehicles and develop new products; our ability to produce vehicles with sufficient volume and quality to satisfy customers; the ability of our principal vendors to deliver the necessary components for our vehicles at prices and volumes acceptable to us; our principal vendors’ ability to perform quality control on our products; our ability to obtain sufficient intellectual property protection for our brand and technologies; our vehicles’ ability to perform as expected; our facing product warranty claims or product recalls; our facing adverse determinations in significant product liability claims; customers’ acceptance of electric vehicles; the development of alternative technology that adversely affects our business; the lingering impact of COVID-19 on our business; increased government regulation of our industry; and tariffs and currency exchange rates. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.
For further information, please contact:
Fly-E Group, Inc.
Investor Relations Department
Email: ir@flyebike.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
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