BEIJING (dpa-AFX) - U Power Limited (UCAR), a China-based vehicle sourcing services provider, Friday announced it has entered into a securities purchase agreement with institutional investors to sell 1,041,668 Class A ordinary shares in a registered direct offering.
In a parallel private placement, the company will issue warrants allowing the purchase of up to 1,562,502 Class A shares. The combined effective price for each share and warrant is $4.80. The warrants are immediately exercisable, expire in five years, and have an initial exercise price of $4.80 per share.
The Company estimates gross proceeds of approximately $5.0 million from the registered direct offering and concurrent private placement, before deducting placement agent fees and other estimated offering expenses.
The offering is anticipated to close on or around January 27, 2025.
UCAR has agreed to amend certain Series A warrants, issued to institutional investors in December 2023, which allow the purchase of up to approximately 100,000 Class A ordinary shares at an exercise price of $120.00 per share. Upon the offering's closing, the exercise price for these warrants will be adjusted to $4.80 per share.
UCAR is currently trading at $5.77 or 27.98% lower on the Nasdaq Capital Market.
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