Wetouch Technology Inc. Issues 31.04M Shares in Private Placement

What Happened
Wetouch Technology Inc. (WETH) announced in an 8-K filed Sept 23, 2026 that it entered into a securities purchase agreement to issue and sell 31,037,830 shares of common stock at $1.25 per share for gross proceeds of $38,797,287.50. The buyers were Qixun Technology (Samoa) Limited and Qihong Technology (Samoa) Limited. The company’s stockholders approved the issuance under Nasdaq Listing Rule 5635 at its 2026 Special Meeting, and the transaction closed on September 22, 2026. The sale was completed as an unregistered offering relying on Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D.

Key Details

• Shares issued: 31,037,830 common shares (par value $0.001 per share)
• Purchase price: $1.25 per share; gross proceeds $38,797,287.50
• Purchasers: Qixun Technology (Samoa) Limited and Qihong Technology (Samoa) Limited
• Closing date: September 22, 2026; shareholder approval obtained under Nasdaq Rule 5635

Why It Matters
The transaction raises about $38.8 million of capital for Wetouch and increases the company’s outstanding common stock by 31,037,830 shares, which is dilutive to existing shareholders. Shareholder approval under Nasdaq rules was required and obtained, indicating the issuance exceeded Nasdaq thresholds that trigger shareholder votes. The offering was completed privately under exemptions from SEC registration (Section 4(a)(2) and Rule 506), meaning the shares were not registered for public resale in this issuance.