Company: FLYE
Filing Date: 2025-02-21
Form Type: DEF 14A
Source: 0001213900-25-016092
Chunk: 20

Company: Fly-E Group, Inc.
Filing Date: 2025-02-21
Form: DEF 14A
Chunk 20
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 the rules of Nasdaq and to avoid, or at least mitigate, the likely adverse consequences of our common stock being delisted from The Nasdaq Capital Market by producing the immediate effect of increasing the bid price of our common stock. Potentially Improve the Marketability and Liquidity of our common stock.Our Board believes that continued listing on Nasdaq provides overall credibility to an investment in our common stock, given the stringent listing and disclosure requirements of Nasdaq. In addition, our Board believes that the increased market price of our common stock expected as a result of implementing a reverse stock split could improve the marketability and liquidity of our common stock and encourage interest and trading in our common stock by mitigating the negative effects of certain practices and policies: • Stock Price Requirements:Many brokerage firms have internal policies and practices that have the effect of discouraging individual brokers from recommending lower -pricedsecurities to their clients. Many institutional investors have policies prohibiting them from holding lower -pricedstocks in their portfolios, which reduces the number of potential purchasers of our common stock. Investment funds may also be reluctant to invest in lower -pricedstocks. • Stock Price Volatility:A higher stock price may increase the acceptability of our common stock to a number of long -terminvestors who may not find our common stock attractive at its current prices due to the trading volatility often associated with stocks below certain prices. Moreover, the analysts at many brokerage firms do not monitor the trading activity or otherwise provide coverage of lower -pricedstocks. • Transaction Costs:Investors may be dissuaded from purchasing stocks below certain prices because brokers’ commissions, as a percentage of the total transaction value, can be higher for lower -pricedstocks. • Access to Capital Markets:If our common stock is delisted from Nasdaq, investor demand for additional shares of our common stock could be limited, thereby preventing us from accessing the public equity markets. We believe that the Reverse Split, if effected, could increase analyst and broker interest in our common stock by avoiding these policies and practices. Increasing visibility of our common stock among a larger pool of potential investors could result in higher trading volumes. We also believe that the Reverse Split may make our common stock a more attractive and cost -effectiveinvestment for many investors, which could enhance the liquidity of our common stock for our stockholders. These increases in visibility and liquidity could also help facilitate future financings and give management more flexibility to focus on executing our business strategy, which includes the strategic management of authorized capital for business purposes. Accordingly, for these and