In a recent development, AYRO Inc., a company specializing in communication services with a market capitalization of $5.06 million, has amended the terms of its preferred stock and granted equity awards to its directors. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 6.55, indicating its ability to meet short-term obligations. This information is based on a filing with the Securities and Exchange Commission dated December 2, 2024.
AYRO Inc. entered into an agreement with certain accredited investors on August 7, 2023, under which it sold shares of Series H-7 Convertible Preferred Stock and warrants to purchase common stock. On Monday, the company modified these terms through a Wavier and Amendment Agreement with the required holders, making director equity grants exempt from being considered securities under the transaction documents.
The Certificate of Amendment, which reflects these changes, was filed with the State of Delaware and became effective on December 2, 2024. This amendment has led to a material modification in the rights of security holders.
Furthermore, on the same day, AYRO's board of directors approved equity awards for the directors as compensation for their service. These awards consist of fully vested restricted shares and cash-settled restricted stock units of the company's common stock. The equity awards were issued at a price per share of $0.76, equivalent to the closing price of AYRO's common stock on the grant date.
AYRO Inc., headquartered in Round Rock, Texas, has undergone several name changes in the past, with its former identities including DropCar, Inc., WPCS INTERNATIONAL INC, and PHOENIX STAR VENTURES INC.
The company's common stock, with the ticker symbol AYRO, is traded on The Nasdaq Stock Market LLC. Trading at $0.74, AYRO's stock has experienced significant volatility, declining 66.72% over the past year. InvestingPro analysis suggests the stock may be undervalued at current levels, with 13 additional ProTips available to subscribers covering crucial aspects like growth prospects and financial health.
This article is based on a press release statement and does not include any speculative content or subjective assessments. For deeper insights into AYRO's financial health, valuation metrics, and growth potential, consider exploring InvestingPro's comprehensive analysis tools and real-time financial data.
In other recent news, AYRO, Inc. has made significant changes to its preferred stock terms and granted equity awards to its directors. The company recently filed an 8-K form with the Securities and Exchange Commission to report these developments. AYRO has amended the Certificate of Designations for its Series H-7 Convertible Preferred Stock, with the changes agreed upon with the Required Holders. This amendment includes the reclassification of Director Equity Grants as "Excluded Securities".
The equity awards consist of 562,992 fully vested restricted shares of AYRO's common stock and 375,328 fully vested cash-settled restricted stock units, both priced at $0.76 per share or unit. These Director Equity Awards are part of the AYRO, Inc. Long-Term Incentive Plan and are subject to the terms outlined in the Plan and each Director Award Agreement. InvestingPro analysis indicates the company is currently undervalued, despite facing challenges with weak gross profit margins and rapid cash burn.
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