Erayak Power Solution Group Inc. Announces 1-for-10 Reverse Stock Split Effective April 20, 2026
Rhea-AI Summary
Erayak Power Solution Group (Nasdaq: RAYA) announced a 1-for-10 reverse stock split approved March 25, 2026 and effective April 20, 2026, with a new CUSIP G3109F129. Each ten Class A or Class B ordinary shares will combine into one share, par value rising from US$0.022 to US$0.22.
The company expects ~978,474 Class A and 4,091 Class B shares outstanding post-split. No fractional shares will be issued; fractional entitlements will be rounded up. The transfer agent is VStock Transfer LLC.
AI-generated analysis. Not financial advice.
Positive
- Reverse split effective April 20, 2026 with new CUSIP G3109F129
- Par value increased from $0.022 to $0.22
- Expected post-split issued shares: 978,474 Class A and 4,091 Class B
- Action intended to help maintain Nasdaq listing
Negative
- Reverse split reflects need to raise per-share price to meet Nasdaq standards
News Market Reaction – RAYA
On the day this news was published, RAYA declined 15.12%, reflecting a significant negative market reaction. Argus tracked a trough of -31.5% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $1M from the company's valuation, bringing the market cap to $6.14M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Pre-announcement, RAYA’s setup looked highly stock-specific: the scanner shows one peer (XPON) moving down and one (DFLI) moving up, while broader peer list includes both notable decliners (ADN -20.82%, POLA -8.59%) and gainers (STI +5.51%), pointing to mixed, not unified, sector momentum.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 10 | Strategic U.S. pivot | Positive | +107.9% | Announced U.S.-centric Nexora strategy and new tri-fuel and UPS product lineup. |
| Mar 25 | Strategic roadmap | Positive | +4.4% | Outlined Home Energy Defense roadmap using tri-fuel inverter platforms and new models. |
| Mar 24 | AI energy update | Positive | -35.3% | Detailed UPS-integrated platforms for AI demand and facility build-out progress. |
| Jan 23 | Demand surge update | Positive | -34.1% | Reported >20x U.S. generator sales surge during winter storms and tight inventory. |
| Oct 17 | U.S. subsidiary launch | Positive | +6.9% | Established Nexora Group as North America HQ to support global expansion. |
Recent strategic and demand-driven updates were generally positive in tone, with mixed market reactions: some large rallies on strategy news and sharp selloffs even on operational strength, indicating inconsistent alignment between fundamentals news and price moves.
Over the past six months, Erayak has focused on North American expansion and higher-value power solutions. On October 17, 2025, it formed U.S. subsidiary Nexora Group to serve as regional HQ. In early 2026, the company reported a >20x U.S. demand surge for quiet generators around East Coast storms, yet the stock fell 34.07%. A strategic AI-focused UPS platform update on March 24, 2026 preceded a 35.32% drop, but subsequent roadmap and Nexora-branded initiatives on March 25 and April 10 led to gains of 4.39% and 107.94%, showing volatile, event-driven trading.
Market Pulse Summary
The stock dropped -15.1% in the session following this news. A negative reaction despite this mechanical 1-for-10 reverse split would fit a pattern where RAYA, at $0.625 and 99.92% below its 52-week high, often traded erratically around news. Recent financing steps, including a $20,000,000 ATM program and a US$400,000 Regulation S share sale, highlight ongoing equity issuance. Past strategic announcements have seen both steep rallies and large selloffs, so further downside could reflect investor sensitivity to dilution and capital-structure moves.
Key Terms
reverse stock split financial
cusip technical
at-the-market offering financial
regulation s regulatory
form f-3 regulatory
prospectus supplement regulatory
sales agreement financial
shelf registration regulatory
AI-generated analysis. Not financial advice.
WENZHOU, China, April 16, 2026 (GLOBE NEWSWIRE) -- ERAYAK Power Solution Group Inc. (Nasdaq: RAYA) (“Erayak” or “we,” “our,” or the “Company”), a manufacturer, designer, and exporter of power solution products, today announced that on March 25, 2026, its board of directors approved a reverse split of its Class A ordinary shares and Class B ordinary shares on a one-for-ten basis (the “Reverse Stock Split”). The Company’s Class A Ordinary Shares will begin trading on the Nasdaq Stock Market LLC (“Nasdaq”) on a post-split basis on April 20, 2026 under the symbol “RAYA” under a new CUSIP number – G3109F129.
As a result of the Reverse Stock Split, each ten (10) issued and outstanding Class A ordinary shares will be combined into one (1) Class A ordinary share and each ten (10) issued and outstanding Class B ordinary shares will be combined into one (1) Class B ordinary share, automatically and without any action by shareholders. The reverse split will result in a proportional increase in par value from US
No fractional shares will be issued as a result of the Reverse Stock Split. Shareholders who would be entitled to a fractional share as a result of the Reverse Stock Split shall have their entitlement rounded up to the nearest whole share.
The Reverse Stock Split was approved by a vote of the Company’s shareholders at its extraordinary general meeting of shareholders held on February 5, 2026.
The Company’s transfer agent, VStock Transfer LLC, will act as the exchange agent. Adjustments made to Class A ordinary shares and Class B ordinary shares represented by physical stock certificates can be made upon surrender of the certificate to the transfer agent. Please contact VStock Transfer LLC for further information at (212) 828-8436.
About Erayak Power Solution Group Inc.
Erayak specializes in the manufacturing, research and development, and wholesale and retail of power solution products. Erayak’s product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. Our products are used principally in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. Our goal is to be the premier power solutions brand and a solution for mobile life and outdoor living. For more information, visit www.erayakpower.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and in its other filings with the U.S. Securities and Exchange Commission.
Investor Relations Contact:
Erayak Power Solution Group Inc.
Email: investor@erayakpower.com
Website: www.erayakpower.com
