Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 49

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 49
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 the use of those net
proceeds, and you will not have the opportunity, as part of your investment decision, to influence how the proceeds are being used. It
is possible that the net proceeds will be invested in a way that does not yield a favorable, or any, return for us. The failure of our
management to use such funds effectively could have a material adverse effect on our business, financial condition, operating results,
and cash flow.

Future sales of our Class A Ordinary Shares, whether by us or our shareholders, could cause the price of our Class A Ordinary Shares to decline.

If our existing shareholders sell, or indicate
an intent to sell, substantial amounts of our Class A Ordinary Shares in the public market, the trading price of our Class A Ordinary
Shares could decline significantly. Similarly, the perception in the public market that our shareholders might sell our Class A Ordinary
Shares could also depress the market price of our shares. A decline in the price of our Class A Ordinary Shares might impede our ability
to raise capital through the issuance of additional Class A Ordinary Shares or other equity securities. In addition, the issuance and
sale by us of additional Class A Ordinary Shares, or securities convertible into or exercisable for our Class A Ordinary Shares, or the
perception that we will issue such securities, could reduce the trading price for our Class A Ordinary Shares as well as make future sales
of equity securities by us less attractive or not feasible.

We do not know whether a market for the Class A Ordinary Shares will be sustained or what the trading price of the Ordinary Shares will be and as a result it may be difficult for you to sell your Class A Ordinary Shares.

Although our Class A Ordinary Shares trade on
Nasdaq, an active trading market for the Class A Ordinary Shares may not be sustained. It may be difficult for you to sell your Class
A Ordinary Shares without depressing the market price for the Class A Ordinary Shares. As a result of these and other factors, you may
not be able to sell your Class A Ordinary Shares. Further, an inactive market may also impair our ability to raise capital by selling
Class A Ordinary Shares, or may impair our ability to enter into strategic partnerships or acquire companies or products by using our
Class A Ordinary Shares as consideration.

Securities analysts may not cover our Class A Ordinary Shares and this may have a negative impact on the market price of our Class A Ordinary Shares.

The trading market for our Class A Ordinary Shares
will depend, in part,