Wetouch Technology Inc. Announces $38.8M Private Placement

What Happened Wetouch Technology Inc. announced it entered into share purchase agreements to issue and sell an aggregate of 31,037,830 shares of common stock at $1.25 per share for gross proceeds of $38,797,287.50 to Qixun Technology Limited and Qihong Technology Limited, the company's controlling shareholders. The offering was priced at a premium to market under Nasdaq rules and the closing is expected on or about August 4, 2026, subject to customary closing conditions. The shares will be subject to a one‑year lock-up, and management has sole discretion over the use of proceeds. The company intends to use the funds to obtain touch‑screen complete systems through in‑house development or acquisition from established manufacturers.

Key Details

• Shares: 31,037,830 common shares
• Price per share / Gross proceeds: $1.25 / $38,797,287.50
• Purchasers: Qixun Technology Limited and Qihong Technology Limited (controlling shareholders)
• Expected close date: on or about August 4, 2026; shares subject to a one‑year lock‑up
• Offering relied on exemptions: Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D; purchasers represented they are accredited investors
• Form of Share Purchase Agreement is filed as Exhibit 10.1 to the Form 8‑K

Why It Matters This is a sizable private placement that will increase Wetouch’s outstanding shares and provide nearly $38.8M in cash for product development or acquisitions focused on touch‑screen systems. The sale to controlling shareholders (at a premium to market) indicates insider support but also dilutes existing public holders; resale of the new shares is restricted for one year. The transaction is not closed yet and remains subject to customary conditions, so investors should watch for the closing and any subsequent disclosures about use of proceeds or changes to capital structure.