Light duty electric vehicle manufacturer AYRO Inc (NASDAQ: AYRO) has been in focus among investors in recent days and on Wednesday, the stock surged by as high as 50%.
The gains are considerable and could be related to an announcement made by the company back in January. On January 25, AYRO announced that it signed definitive agreements with regards to a registered direct offering with a pair of existing institutional investors.
According to the terms of the agreement, AYRO is going to sell a total of 3,333,334 shares of its common stock to the investors at $6 each. In addition to that, the company has also reached an agreement to issue as many unregistered warrants to its investors. The warrants are going to entitle investors to acquire 3,333,335 shares of the company’s common stock for $6.93 each. The warrants can be exercised by investors six months from the date of closing of the offering.