Wetouch Technology Inc. Announces Pricing of $10.8 Million Public Offering of Common Stock and Concurrent Uplisting to the Nasdaq Capital Market
- Wetouch Technology Inc. (WETH) successfully prices an underwritten public offering of 2,160,000 shares of common stock at $5.00 per share.
- The Company expects to raise $10.8 million from the Offering before expenses, commissions, and underwriting discounts.
- Proceeds will be utilized for constructing a new factory, purchasing production lines, research and development, repaying convertible promissory notes, and general corporate purposes.
- The underwriters have a 45-day option to purchase up to 324,000 additional shares at the public offering price per share.
- WestPark Capital, Inc., Craft Capital Management LLC, and R.F. Lafferty & Co., Inc. are the underwriters for the Offering, with WestPark as the lead book running manager.
- The Company's common stock has been approved to list on The Nasdaq Capital Market under the 'WETH' ticker symbol.
- The Offering is expected to close on February 23, 2024, subject to customary closing conditions.
- The Offering is being conducted on a firm commitment basis.
- The Company filed a registration statement with the SEC on Form S-1 (File No. 333-270726) and the Offering is made only by means of a written prospectus.
- The final prospectus relating to the Offering will be filed with the SEC and available for public access.
- The Offering is expected to begin trading on Nasdaq on February 21, 2024.
- The Company's legal counsels are The Crone Law Group P.C. and Bevilacqua PLLC for the Offering.
- The Offering proceeds will also be used for facilities and office buildings, as well as working capital needs.
- None.
Insights
Wetouch Technology Inc.'s announcement regarding the pricing of their public offering at $5.00 per share for 2,160,000 shares is a significant financial event. With projected gross proceeds of $10.8 million, this capital raise is a strategic move to fuel the company's expansion plans. The allocation of funds towards the construction of a new factory and the purchase of production lines indicates a focus on scaling manufacturing capabilities. This decision to expand production facilities suggests a positive outlook on future demand for their touchscreens.
However, investors should consider the dilutive effect of such an offering on existing shareholders. The additional 324,000 shares underwriter option could further dilute the stock. The market's reaction to this dilution, as well as the company's execution of its expansion strategy, will be critical to watch in the coming quarters. The firm commitment basis of the offering provides some assurance of the underwriters' confidence in the stock, potentially stabilizing its price post-offering.
The projected capacitive touchscreen market is highly competitive, with rapid technological advancements. Wetouch's investment in research and development, as part of the proceeds use, is crucial to maintain a competitive edge. By listing on the Nasdaq Capital Market, Wetouch gains visibility and credibility, which can attract institutional investors and increase trading liquidity. It's important to monitor how the market perceives Wetouch's growth strategy and technological advancements post-listing, as this can impact investor sentiment and stock performance.
Given the current market conditions and investor appetite for tech stocks, the timing of the offering and the subsequent listing on Nasdaq could play a pivotal role in the success of the offering. Investors will likely scrutinize the final prospectus and the company's future financial disclosures to assess the viability and profitability of the company's expansion.
The involvement of specialized legal counsel, such as The Crone Law Group P.C. and Bevilacqua PLLC, indicates the complexity and regulatory scrutiny associated with public offerings and Nasdaq listings. Compliance with SEC regulations is paramount and the effectiveness of the registration statement is a key milestone. Investors should be aware of the legal frameworks governing the offering and the listing, as any non-compliance could result in penalties or adverse effects on the stock's performance.
It is also essential to understand the terms of the convertible promissory notes that the company plans to repay. These terms can affect the company's financial flexibility and cost of capital. The legalities surrounding the offering, including the registration statement and prospectus, provide transparency and protect investor interests, which is fundamental for market confidence.
Meishan, Sichuan, China, Feb. 20, 2024 (GLOBE NEWSWIRE) -- Wetouch Technology Inc. (Nasdaq: WETH ) (“Wetouch” or the “Company”), a Nevada company, through its wholly-owned subsidiary, engaged in the research, development, manufacturing, sales and servicing of projected capacitive touchscreens, announced today the pricing of an underwritten public offering of 2,160,000 shares of common stock at a price to the public of
Proceeds from the Offering will be used for the construction of a new factory, facilities and office buildings, the purchase of two production lines in the new factory, research and development, the repayment of convertible promissory notes, and working capital and general corporate purposes.
The Offering is being conducted on a firm commitment basis. WestPark Capital, Inc. (“WestPark”), Craft Capital Management LLC, and R.F. Lafferty & Co., Inc. are the underwriters for the Offering, with WestPark being the lead book running manager for the Offering. The Crone Law Group P.C. is acting as U.S. counsel to the Company and Bevilacqua PLLC is acting as U.S. counsel to the underwriters in connection with the Offering.
The Company is also pleased to announce its common stock has been approved to list on The Nasdaq Capital Market (“Nasdaq”) under its current “WETH” ticker symbol and is expected to begin trading on Nasdaq on February 21, 2024.
The shares of common stock described above are being offered by the Company pursuant to a registration statement on Form S-1 (File No. 333-270726) that was initially filed by the Company with the U.S. Securities and Exchange Commission (SEC) on March 21, 2023 and declared effective by the SEC on February 14, 2024. The Offering is being made only by means of a written prospectus that forms a part of the registration statement. A preliminary prospectus relating to the Offering was filed with the SEC and is available on the SEC’s website located at http://www.sec.gov. A final prospectus relating to the Offering will be filed with the SEC. When available, copies of the final prospectus relating to the Offering may be obtained from WestPark Capital, Inc., 1800 Century Park East, Suite 220, Los Angeles, CA 90077, tel: 310-203-2919, e-mail: jstern@wpcapital.com and will be available on the SEC’s website.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Wetouch Technology Inc.
Wetouch Technology Inc. is a holding company incorporated in Nevada with operations conducted by its wholly-owned subsidiary engaged in the research, development, manufacturing, sales and servicing of medium to large sized projected capacitive touchscreens. The Company specializes in large-format touchscreens, which are developed and designed for a wide variety of markets and used in the financial terminals, automotive, POS, gaming, lottery, medical, HMI, and other specialized industries.
Forward Looking Statements
This document contains certain “forward-looking statements”. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies, goals and objectives of management for future operations; any statements concerning proposed new products and services or developments thereof; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing.
Forward looking statements may include the words “may,” “could,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words, or the negative thereof. These forward-looking statements present our estimates and assumptions only as of the date of this report. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the dates they are made. You should, however, consult further disclosures and risk factors we include in Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Reports filed on Form 8-K.
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FAQ
What is the pricing of the underwritten public offering by Wetouch Technology Inc. (WETH)?
How much is the Company expecting to raise from the Offering?
What will the proceeds from the Offering be used for?
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Where can the final prospectus relating to the Offering be obtained?
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