Summary by Futu AI
U Power Limited announced a $5 million registered direct offering on January 24, 2025, agreeing to sell 648,000 Class A ordinary shares and pre-funded warrants for 393,668 shares at $4.80 per share. The company also issued unregistered common warrants for up to 1,562,502 shares in a concurrent private placement. The offering closed on January 27, 2025, with proceeds intended for working capital and general corporate purposes.The common warrants are exercisable immediately at $4.80 per share with a five-year term, while pre-funded warrants have a nominal exercise price of $0.0001. Maxim Group LLC served as the exclusive placement agent, receiving a 7% fee. Additionally, the company amended existing Series A warrants from December 2023, reducing their exercise price from $120.00 to $4.80 per share.The company's directors and executives agreed to a 120-day lock-up period following the offering's closing. U Power also committed to restrictions on variable rate transactions and new share issuances for 120 days and 60 days post-closing, respectively.
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