U Power Limited Announces Pricing Of Registered Follow-On Offering Of 10M Units At A Purchase Price Of $1.20/Unit
Portfolio Pulse from Benzinga Newsdesk
U Power Limited (NASDAQ:UCAR), an EV battery power solution provider in China, has announced the pricing of a follow-on offering of 10 million units at $1.20 each. The offering includes ordinary shares and Series A and B warrants exercisable at $1.20 and $1.54 respectively, expiring in five years. The expected closing date is December 6, 2023, with anticipated gross proceeds of $12 million, to be used for M&A of battery swapping companies, working capital, and general corporate purposes. Univest Securities, LLC is the placement agent, with Hunter Taubman Fischer & Li LLC and Ortoli Rosenstadt LLP as U.S. securities and counsel respectively.
December 04, 2023 | 2:04 pm
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U Power Limited has priced a follow-on offering at $1.20 per unit, aiming to raise $12 million for expansion and general corporate purposes. The offering includes shares and warrants, indicating potential dilution but also providing capital for growth.
The announcement of a follow-on offering typically has a mixed impact on a company's stock price. On one hand, it can lead to dilution of existing shares, which might put downward pressure on the stock price. On the other hand, the capital raised can be used for growth initiatives, such as mergers and acquisitions, which could have a positive long-term impact. In the short term, the market's reaction will depend on investors' perception of the balance between these factors.
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