Wetouch Technology Inc. Announces \$38.8 Million Private Placement with Controlling Shareholders
- Wetouch Technology Inc. enters into Share Purchase Agreements with controlling shareholders.
- 31,037,830 shares of common stock to be issued at \$1.25 per share, raising \$38,797,287.50 in gross proceeds.
- Sale priced at a premium to market under Nasdaq rules.
- One-year lock-up on all newly issued shares.
- Proceeds earmarked for strategic development and acquisitions in the touchscreen systems space.
Details of the Transaction
On July 31, 2026, Wetouch Technology Inc. (“Wetouch” or “the Company”) entered into definitive share purchase agreements with its controlling shareholders, Qixun Technology Limited and Qihong Technology Limited. Under these agreements, Wetouch will issue and sell a total of 31,037,830 shares of its common stock, each with a par value of \$0.001, at a price of \$1.25 per share. The total gross proceeds from this private placement will amount to \$38,797,287.50.
Premium Pricing & Strategic Shareholder Involvement
Notably, the offering price is set at a premium to the prevailing market price, as required under Nasdaq listing rules. This premium pricing, coupled with the participation of the Company’s controlling shareholders, reflects significant insider confidence in Wetouch’s future prospects.
Lock-Up Period and Restrictions
All shares issued in this transaction will be subject to a one-year lock-up period, during which the recipients are prohibited from transferring or selling the shares without prior written consent from Wetouch and subject to applicable U.S. federal securities laws. This restriction is designed to align the interests of the investors with those of the Company and its broader shareholder base.
Use of Proceeds
Wetouch has indicated that the funds raised will be primarily used to obtain complete touchscreen systems through in-house development or by acquiring such systems from established manufacturers. The Company has specified that proceeds will not be used for litigation settlements, construction projects, acquisition of real property, investments in securities, or any other non-operational purposes.
Regulatory and Legal Aspects
The issuance of these shares is being conducted as a private placement and relies on exemptions from registration under Section 4(a)(2) of the Securities Act of 1933 and Rule 506 of Regulation D. Both purchasers have been verified as “accredited investors” and have affirmed that they are acquiring the securities strictly for investment purposes.
Potential Impact on Shareholders and Share Price
- Significant capital infusion of nearly \$39 million substantially strengthens Wetouch’s balance sheet and provides resources for technology expansion and strategic growth.
- Premium pricing and insider participation are strong signals of management and major shareholder confidence, potentially positive for minority shareholders and the share price.
- Lock-up provisions reduce the risk of immediate dilution or selling pressure, helping to stabilize the market perception of the share issue.
- The use of proceeds for core business development (rather than unrelated investments or liabilities) should be viewed positively by investors focused on long-term value creation.
- However, a large issuance of new shares will increase the number of shares outstanding, which could have dilutive effects over the longer term once the lock-up expires.
Additional Information
Exhibit 10.1—the form of the Share Purchase Agreement—has been filed with this Form 8-K and is incorporated by reference for those seeking further legal and procedural details.
Wetouch Technology Inc. is registered in Nevada with operational headquarters in Meishan City, Sichuan, China, and a mailing address in New York, NY. The Company is listed on Nasdaq under the symbol WETH as an Emerging Growth Company.
