Wetouch raises $38.8M from controlling shareholders at a premium

Wetouch Technology has agreed to sell $38.8 million in stock to its two controlling shareholders, Qixun Technology Limited and Qihong Technology Limited, in a private placement announced in July 2026. The Nasdaq-listed touchscreen maker will issue 31,037,830 shares at $1.25 each, for gross proceeds of $38,797,287.50.

Wetouch, which is registered in Nevada and operates from Meishan City, Sichuan, plans to use the money to obtain complete touchscreen systems through in-house development or by acquiring them from established manufacturers. It has ruled out spending on litigation settlements, construction, real property, or securities investments.

The $1.25 price sits above the prevailing market price, as required under Nasdaq listing rules for share sales to insiders. Wetouch frames the pricing and the involvement of its controlling shareholders as a sign of insider confidence in its prospects.

All shares carry a one-year lock-up, limiting immediate selling pressure. Once that period expires, however, the new shares could dilute minority holders — the issuance sharply increases the total outstanding.

The deal is large for its category, ranking in roughly the 92nd percentile of non-VC private placements by companies in its region over the trailing 48 months, based on a sample of 5,599 rounds. Insider-funded, premium-priced placements are a route smaller listed companies use to raise growth capital while signalling confidence — without turning to outside investors.