U Power Announces Pricing of $5.0 Million Registered Direct Offering
Rhea-AI Summary
U Power (UCAR) has announced a $5.0 million registered direct offering of 1,041,668 Class A ordinary shares at $4.80 per share to institutional investors. The deal includes warrants to purchase up to 1,562,502 additional shares in a concurrent private placement. The warrants are immediately exercisable at $4.80 per share and expire in five years.
The company will also amend certain existing Series A warrants from December 2023, reducing their exercise price from $120.00 to $4.80 per share. These warrants cover approximately 100,000 Class A ordinary shares. Maxim Group is serving as the sole placement agent, with the offering expected to close around January 27, 2025.
AI-generated analysis. Not financial advice.
Positive
- Secured $5.0 million in new funding through registered direct offering
- Reduced warrant exercise price from $120.00 to $4.80, increasing likelihood of exercise
Negative
- Significant dilution potential from new shares and warrants totaling over 2.6 million shares
- Substantial 96% reduction in warrant exercise price indicates weak market position
- Additional capital raise suggests possible cash flow concerns
News Market Reaction – UCAR
On the day this news was published, UCAR declined 30.43%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The gross proceeds to the Company from the registered direct offering and concurrent private placement are estimated to be approximately
The offering is expected to close on or about January 27, 2025, subject to the satisfaction of customary closing conditions.
U Power has also agreed that certain existing Series A warrants to purchase up to an aggregate of approximately 100,000 Class A ordinary shares of the Company that were issued to such institutional investors on or around December 2023, at an exercise price of
Maxim Group LLC is acting as the sole placement agent in connection with the offering.
The Class A ordinary shares are being offered pursuant to a shelf registration statement on Form F-3 (File No. 333-282901), which was declared effective by the
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. A prospectus supplement relating to the sales of Class A ordinary shares will be filed by the Company with the SEC. When available, copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue,
About U Power Limited
U Power Limited is a vehicle sourcing services provider, with a vision to becoming an EV market player primarily focused on its proprietary battery-swapping technology, or UOTTA technology, which is an intelligent modular battery-swapping technology designed to provide a comprehensive battery power solution for EVs. Since its operation in 2013, the Company has established a vehicle sourcing network in China's lower-tier cities. The Company has developed two types of battery-swapping stations for compatible EVs and is operating one manufacturing factory in Zibo City, Shandong Province, China. For more information, please visit the Company's website: http://ir.upincar.com/.
Forward-Looking Statements
This press release contains "forward-looking statements." Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
Contact
U Power Limited
Investor Relations Department
Email: ir@upincar.com
Robin Yang, Partner
ICR, LLC
Email: UPower.IR@icrinc.com
Phone: +1 (212) 475-0415
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SOURCE U Power Limited