offering by U Power

U Power Stock Dips with Unveiling of Follow-On Offering Pricing

U Power Limited, a leading vehicle sourcing services provider in China with aspirations to evolve into a comprehensive electric vehicle (EV) battery power solution provider, made a significant announcement today regarding the pricing of its best-efforts follow-on offering. The company aims to issue up to 10,000,000 units, each priced at US$1.20. This strategic move represents a key milestone in U Power’s mission to play a pivotal role in the rapidly expanding EV market in China.

As the news of the offering broke, the market responded swiftly, causing a notable shift in the stock value of U Power. Closing at $1.54 in Friday’s trading session, the stock faced a dramatic downturn as it commenced Monday morning trading at $0.65. As of the latest reports, the stock continues to trade lower, signaling a dynamic response from investors in the wake of the offering announcement.

At the time of this publication, U Power Ltd stock (UCAR) has witnessed a decline.
U Power Ltd
Current Price: $0.66
Change : -0.88
Change (%): (-57.34%)
Volume: 5.5M
Source: Tomorrow Events Market Data

Each unit offered by U Power comprises one ordinary share of the company, one Series A warrant enabling the purchase of an ordinary share, and one Series B warrant for the same purpose. The Series A warrants are immediately exercisable and carry an expiration date set for the fifth anniversary of the original issuance, with an exercise price of US$1.20. Similarly, the Series B warrants are also immediately exercisable, expiring on the fifth anniversary of the original issuance, but with a distinct exercise price of US$1.54. The company anticipates the completion of the offering around December 6, 2023, subject to meeting customary closing conditions.

The projected gross proceeds from this follow-on offering are estimated at US$12,000,000, excluding associated expenses. U Power earmarks these funds for strategic purposes, primarily the merger and acquisition of battery swapping companies. Additionally, the proceeds will be allocated for working capital and other general corporate uses, positioning U Power to navigate the dynamic landscape of the EV industry in China.

Facilitating this offering, Univest Securities, LLC is serving as the placement agent. Hunter Taubman Fischer & Li LLC is playing a crucial role as U.S. securities counsel to U Power, while Ortoli Rosenstadt LLP is acting as U.S. counsel to Univest, ensuring the smooth execution of this financial endeavor.

The offering is in compliance with the registration statement of U Power on Form F-1, filed with the U.S. Securities and Exchange Commission (SEC) under File Number 333-275654. The SEC declared the registration effective on November 29, 2023, setting the stage for U Power’s strategic financial move in the evolving landscape of electric vehicle solutions in China.

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