Wetouch Technology (WETH) cut the size of its public offering/NASDAQ uplisting to 2.16 million shares – down from 3.0 million shares in the prospectus – and priced the deal at $5.00 – the low end of its $5.00-to-$7.00 range – to raise $10.8 million on Tuesday night (Feb. 20, 2024). The company trimmed the deal’s size last week to 3.0 million shares – down from 4.0 million shares – at the $5.00-to-$7.00 price range – according to an S-1/A filing on Tuesday, Feb. 13, 2024. On that day – Tuesday, Feb. 13th – the U.S. stock market sold off sharply following the release of hotter-than-expected January inflation data. The hot take on January CPI dashed investors’ hopes that the Fed would start cutting interest rates in March. After the release of the January CPI data, Reuters reported that financial markets “pushed back their interest rate-cut expectations to June from May.”
Shares of Wetouch Technology Inc. are expected to start trading today – Wednesday, Feb. 21, 2024 – on the NASDAQ. This is an uplisting of the company’s stock from the OTCQB Market. A 1-for-20 reverse stock split became effective on Sept. 12, 2023, according to the prospectus. Wetouch shares closed on the OTCQB on Feb. 9, 2024, at $5.45, the prospectus says. On Tuesday, Feb. 20, 2024, Wetouch shares closed at $7.50 on the OTCQB.
WestPark Capital, Craft Capital, R.F. Lafferty & Co. and Orientert served as the joint book-runners of Wetouch Technology’s public offering, which was conducted in connection with its NASDAQ uplisting.
Two Deals Priced Tuesday Night
Wetouch Technology’s NASDAQ uplisting was one of two deals priced on Tuesday night, Feb. 20, 2024, during this holiday-shortened work week. A SPAC IPO – DT Cloud Acquisition Corp. (DYCQU) – was also priced Tuesday night, in sync with the terms in its prospectus: 6.0 million units at $10.00 each to raise $60.0 million. The U.S. stock market was closed Monday, Feb. 19, 2024, for Presidents Day, a federal holiday.
Based on the downsized terms in the pricing of the company’s NASDAQ uplisting deal, Wetouch Technology has a market cap of $59.46 million.
Big Touchscreens from China
Wetouch Technology is a profitable Nevada-incorporated holding company whose subsidiary in Mainland China manufactures and distributes large-format touchscreens.
Wetouch Technology’s touchscreens are used in the financial, automotive, POS (point-of-sale), gaming, lottery, medical and other specialized industries. The company, based in Meishan in the province of Sichuan, China, sells its touchscreens in the People’s Republic of China and internationally.
The parent company is profitable. Wetouch Technology reported net income of $10.2 million on revenue of $39.8 million for the 12 months that ended Sept. 30, 2023, according to the prospectus.
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