CHENGDU, China, Aug. 03, 2026 (GLOBE NEWSWIRE) -- WeTouch Technology Inc. (NASDAQ: WETH) ("WeTouch" or the "Company"), a global provider of touch display solutions, today provided additional context regarding the strategic significance of the share purchase agreements entered into on July 31, 2026.
Under the agreements, the Company will issue and sell an aggregate of 31,037,830 newly issued common shares at $1.25 per share to its existing controlling shareholder platforms, Qixun Technology Limited and Qihong Technology Limited, for total gross proceeds of approximately $38.8 million. The subscription price represents a premium to the applicable Nasdaq Minimum Price. The transaction is expected to close on or about August 4, 2026, subject to customary closing conditions.
Key Highlights of the Transaction
- Investment by Existing Controlling Shareholder Platforms: The purchasers are investment holding platforms controlled by WeTouch's founder, directors and management team, rather than third-party investors.
- Primary Equity Issuance: The transaction is a primary issuance of newly issued shares, with all cash proceeds being paid directly to the Company. No founder, director, member of management or other existing shareholder is selling shares or receiving any of the proceeds.
- Contractual 12-Month Lock-Up and Anti-Shorting Restrictions: The acquired shares may not be sold or transferred for at least 12 months without the Company's prior written consent and subject to applicable U.S. federal securities laws. The purchasers have also agreed not to engage in short-selling or share-lending activities involving the Company's securities.
- No Asset Contribution at Closing: The transaction does not involve the contribution or acquisition of a factory or other operating assets at closing.
- Long-Term Ownership Commitment: The premium-priced subscription reflects management's confidence in the Company's operating capabilities, customer relationships and long-term strategic potential.
Upon closing, the issuance will increase the number of the Company's outstanding common shares and dilute the percentage ownership and voting power of its existing shareholders. At the same time, the transaction will further increase the long-term ownership position of the Company's founder, directors and management team through the controlling shareholder platforms.
Use of Proceeds and Strategic Development
The proceeds will further strengthen the Company's capital position and provide additional resources for core business expansion, product upgrades, research and development, manufacturing capability enhancement, and potential strategic acquisitions or business integrations that are directly related to the Company's operations and long-term development strategy.
Consistent with its previously disclosed development plans, WeTouch is continuing its transformation from a manufacturer of professional touch display products and components into a provider of integrated touch solutions and intelligent terminal systems.
While continuing to strengthen the competitive advantages of its existing touch display business, the Company intends to further develop its capabilities in complete-system design, research and development, manufacturing and commercialization, and gradually expand into intelligent interactive terminals, human-machine interaction systems, robotics components, complete robotic products and robotic system integration.
The Company will also continue to prudently evaluate potential acquisitions and business integration opportunities that could add established manufacturing capabilities, core technologies, complementary product portfolios, supply-chain resources or customer channels, and that are directly aligned with the Company's core business and long-term development strategy, thereby continuing to strengthen the Company's overall competitiveness and long-term value-creation capabilities.
Management Commentary
"The significance of this transaction lies in the long-term commitment represented by the capital investment," said Jack Zongyi Lian, Chief Executive Officer of WeTouch Technology Inc. "At a time when we believe our public market valuation does not fully reflect the Company's underlying operating strengths and long-term potential, our founder, directors and management team chose to commit additional cash capital through the existing controlling shareholder platforms at a premium price and accept a 12-month lock-up."
"This is not a sale of existing shares or a cash-out by insiders. The capital will be paid directly to the Company to support its next stage of development. Going forward, we remain focused on improving operating efficiency, strengthening our core business, expanding into intelligent terminal systems and robotics, and creating sustainable long-term value for our shareholders."
Private Placement
The shares are being offered in a private placement in reliance on applicable exemptions from registration under the Securities Act of 1933, as amended, including Section 4(a)(2) and Rule 506 of Regulation D. The shares have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities.
About WeTouch Technology Inc.
WeTouch Technology Inc. is a global provider of touch display solutions for industrial, commercial, automotive and emerging hardware applications. Combining precision manufacturing with human-machine interaction technologies, the Company is expanding its capabilities in higher-value intelligent hardware, robotics components and related application scenarios.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable U.S. securities laws. These statements include, but are not limited to, statements regarding the expected closing of the transaction, the intended use of proceeds, the Company's business expansion and product development plans, its manufacturing capabilities, its intelligent terminal and robotics initiatives, and its ability to create long-term shareholder value.
Forward-looking statements are based on management's current expectations and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control. Actual results may differ materially from those expressed or implied by these statements. Additional information regarding these risks and uncertainties is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement except as required by applicable law.
Investor and Media Contact:
Email: InvestorRelations@wetouch.com.cn
