Company: RAYA
Filing Date: 2025-09-29
Form Type: 424B5
Source: 0001185185-25-001296
Chunk: 53

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-09-29
Form: 424B5
Chunk 53
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5, we
will issue 163,934,426 Class A Ordinary Shares in this offering, over 87.25% of our Class A Ordinary Shares prior to the offering.

The sale of a substantial amount of our Class A Ordinary Shares could adversely affect the prevailing market price of our ordinary shares.

We are offering Class A Ordinary
Shares. Sales of substantial amounts of our Class A Ordinary Shares in the public market, or the perception that such sales might occur,
could adversely affect the market price of our ordinary shares. Furthermore, in the future, we may issue additional ordinary shares or
other equity or debt securities convertible into ordinary shares. Any such issuance could result in substantial dilution to our existing
shareholders and could cause our share price to decline.

We cannot assure you that the proposed Reverse Stock Split will increase the price of our Class A Ordinary Shares and the proposed Reverse Stock Split may decrease the liquidity of our Class A Ordinary Shares and result in higher transaction costs.

We may need to effect the proposed reverse stock split to regain compliance
with the Nasdaq Bid Price Rule. We expect that the proposed Reverse Stock Split, if implemented, would increase the market price of our
Class A ordinary shares. It is possible that the per share price of our Class A ordinary shares after the proposed Reverse Stock Split
will not increase in the same proportion as the reduction in the number of outstanding shares of Class A ordinary shares following the
proposed Reverse Stock Split. However, the effect of the proposed Reverse Stock Split on the market price of our Class A ordinary shares
cannot be predicted with any certainty, and the history of reverse stock splits for other companies of similar size to us is varied, particularly
because investors may view a reverse stock split negatively. Even if we implement the proposed Reverse Stock Split, the market price of
our Class A ordinary shares may decrease due to factors unrelated to the Reverse Stock Split, including our future performance.

Furthermore, the proposed Reverse Stock Split, if implemented, may
decrease the liquidity of our Class A ordinary shares because fewer shares would be outstanding after the Reverse Stock Split. In addition,
if the Board of Directors implements the Reverse Stock Split, more stockholders may own “odd lots” of fewer than 100 shares
of Class A ordinary shares, which may be more difficult to sell. Brokerage commissions and other costs of transactions in odd lots are
generally higher than the costs of transactions of more than 100 shares or multiples of 100 shares of Class A ordinary shares. Accordingly,
the proposed Reverse