On July 31, 2026, Wetouch Technology Inc. (the "Company") entered into certain share purchase agreements (the "Share Purchase Agreements") with Qixun Technology Limited and Qihong Technology Limited, the controlling shareholders of the Company (the "Purchasers"), pursuant to which the Company agreed to issue and sell an aggregate of 31,037,830 shares of its common stock, par value $0.001 per share, at a purchase price of $1.25 per share for gross proceeds of $38,797,287.50. The offering was priced at a premium to market under Nasdaq rules.

 

The closing of the private placement is expected to occur on or about August 4, 2026, subject to the satisfaction of customary closing conditions. The management of the Company has sole and absolute discretion concerning the use of the proceeds from the offering. The shares issued pursuant to the Share Purchase Agreements are subject to a one-year lock-up period. The Company intends to use the proceeds to obtain touch-screen complete systems through in-house development or acquisition from established manufacturers.