Company: RAYA
Filing Date: 2025-07-28
Form Type: 424B5
Source: 0001213900-25-067907
Chunk: 49

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-07-28
Form: 424B5
Chunk 49
---
 not currently have and may
never obtain research coverage by independent securities and industry analysts. If no independent securities or industry analysts commence
coverage of us, the trading price for our ordinary shares would be negatively impacted. If we obtain independent securities or industry
analyst coverage and if one or more of the analysts who covers us downgrades our ordinary shares, changes their opinion of our shares
or publishes inaccurate or unfavorable research about our business, the price of our Class A Ordinary Shares would likely decline. If
one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, demand for our Class A Ordinary Shares
could decrease and we could lose visibility in the financial markets, which could cause the price and trading volume of our Class A Ordinary
Shares to decline.

<div align='center'>S-18</div>

A possible “short squeeze” due to a sudden increase in demand of our Class A Ordinary Shares that largely exceeds supply may lead to additional price volatility.

Investors may purchase
Class A Ordinary Shares to hedge existing exposure or to speculate on the price of our Class A Ordinary Shares. Speculation on the price
of our Class A Ordinary Shares may involve long and short exposures. To the extent an aggregate short exposure in our Class A Ordinary
Shares becomes significant, investors with short exposure may have to pay a premium to purchase shares for delivery to share lenders at
times if and when the price of our Class A Ordinary Shares increases significantly, particularly over a short period of time. Those purchases
may in turn, dramatically increase the price of our Class A Ordinary Shares. This is often referred to as a “short squeeze.”
A short squeeze could lead to volatile price movements in our shares that are not directly correlated to our business prospects, financial
performance or other traditional measures of value for the Company or its Class A Ordinary Shares.

If you purchase securities in this offering, you may incur immediate and substantial dilution in the book value of your shares.

After giving effect to
the sale of 32,448,981 Class A Ordinary Shares in this offering, at a public offering price of $0.098 per Share, and assuming all Pre-Funded
Warrants are exercised, and after deducting the estimated placement agent discounts and commissions and estimated offering expenses payable
by us, purchasers of our shares in this offering will incur immediate dilution of $(0.18) per share in the net tangible book value of
the Class A Ordinary Shares they acquire. For a further description of the dilution that investors