Fly-E Group, Inc. Announces Full Exercise and Closing of Over-Allotment Option

Rhea-AI Summary

Fly-E Group announced that the underwriter of its IPO has fully exercised its over-allotment option to purchase an additional 337,500 shares at $4.00 per share. This brings the total shares sold to 2,587,500, generating gross proceeds of $10.35 million before deducting related expenses.

The funds will be allocated to inventory and production costs, retail store expansion, technology, R&D, and general corporate purposes. FLYE's stock began trading on the Nasdaq under the symbol 'FLYE' on June 6, 2024. The Benchmark Company managed the offering, with Hogan Lovells and Lucosky Brookman providing legal counsel.

Positive

• Full exercise of over-allotment option, increasing total shares sold to 2,587,500.
• Gross proceeds of $10.35 million before expenses.
• Funds to be used for inventory, production, retail expansion, technology, R&D, and general purposes.
• Successful trading commencement on Nasdaq under the symbol 'FLYE'.

Negative

• None.

Financial Analyst

The full exercise of the over-allotment option in FLYE's IPO indicates a strong demand for its shares, often interpreted as a positive signal for the company’s market appeal. By selling an additional 337,500 shares at the initial offering price, FLYE has successfully raised US$10.35 million in total proceeds. This capital injection supports several important aspects of FLYE’s growth strategy, including inventory and production costs, retail expansion and R&D initiatives.

From a financial perspective, the funds raised will enhance FLYE's ability to scale its operations. However, retail investors should remain cautious of the associated risks of dilution, as an increased share count could impact the per-share earnings and future stock price appreciation. Furthermore, the post-IPO period is often volatile and initial enthusiasm can wane, affecting share prices short term.

Additionally, it's important to scrutinize how efficiently FLYE will deploy these funds. Effective allocation towards high-growth areas such as technology and retail expansion could yield significant returns, but misallocation could lead to financial strain without commensurate benefits.

Market Research Analyst

FLYE's decision to utilize the over-allotment option reflects a strategic move to capitalize on the positive market sentiment and further its operational goals. The firm's intention to use the proceeds for various purposes like inventory, production and retail expansion aligns with a typical growth-centric approach of newly listed companies.

The effective allocation of raised capital towards expanding retail stores could significantly enhance brand visibility and consumer reach, potentially driving sales growth. Likewise, investment in technology and R&D could lead to innovation and competitive differentiation in the crowded vehicle manufacturing market.

Investors should consider the competitive landscape and FLYE’s positioning within its industry. The company’s ability to manage growth efficiently amidst competition will be key. If FLYE can leverage its expanded resources to capture market share and improve operational efficiency, it will likely enhance investor confidence and long-term value.

Retail investors should monitor FLYE’s execution on these fronts and be aware of potential market shifts that could impact the retail and technology sectors the company is engaging in.

New York, N.Y., June 27, 2024 (GLOBE NEWSWIRE) -- Fly-E Group, Inc. (Nasdaq: FLYE) (“FLYE” or the “Company”) today announced the underwriter of its initial public offering (the "Offering") has exercised its over-allotment option in full to purchase an additional 337,500 shares of FLYE’s common stock at the public offering price of US$4.00 per share. After giving effect to the full exercise of the over-allotment option, FLYE sold an aggregate 2,587,500 shares of its common stock for aggregate gross proceeds of US$10.35 million, before deducting underwriter discounts, commissions and other related expenses. FLYE’s shares of common stock began trading on the Nasdaq Capital Market under the symbol “FLYE” on June 6, 2024.

Proceeds from the Offering will be used primarily to cover the purchase of inventory and production costs of FLYE’s vehicles, the expansion of its retail stores, its technology, research and development initiatives, and for general corporate purposes.

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 the shares of common stock of the Company was filed with the U.S. Securities and Exchange Commission and became effective on May 14, 2024. The 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 the securities of the Company, 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.” The Company’s 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.

Forward Looking Statements

This press release contains “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. Forward-looking statements mean statements related to future events, which may impact the Company’s expected future business and financial performance, including those with respect to the Offering. No assurance can be given that the net proceeds of the Offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and prospectus for the Offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

For more 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

FAQ

What recent action did Fly-E Group's underwriter take?

The underwriter fully exercised its over-allotment option to purchase an additional 337,500 shares at $4.00 per share.

How many total shares did Fly-E Group sell in its IPO?

Fly-E Group sold a total of 2,587,500 shares in its IPO.

What were the gross proceeds from Fly-E Group's IPO?

The gross proceeds from Fly-E Group's IPO were $10.35 million before deducting expenses.

When did Fly-E Group's stock start trading on Nasdaq?

Fly-E Group's stock began trading on Nasdaq on June 6, 2024, under the symbol 'FLYE'.

How will Fly-E Group use the funds from the IPO?

Fly-E Group will use the IPO funds for inventory and production costs, retail store expansion, technology, R&D, and general corporate purposes.