U Power announces $5M registered direct offering

U Power (UCAR) announced that it has entered into a securities purchase agreement with certain institutional investors to sell 1,041,668 Class A ordinary shares of the company in a registered direct offering. In a concurrent private placement, the company also agreed to issue and sell to the investors warrants to purchase up to 1,562,502 Class A ordinary shares. The combined effective offering price for each Class A ordinary share and accompanying warrant is $4.80. The warrants are immediately exercisable, expire five years from issuance, and have an initial exercise price of $4.80 per share, which exercise price is subject to standard adjustments for dividends, splits and similar events and is also subject to adjustment for certain dilutive issuances. The gross proceeds to the company from the registered direct offering and concurrent private placement are estimated to be approximately $5M before deducting the placement agent’s fees and other estimated offering expenses payable by the company. The offering is expected to close on or about January 27, subject to the satisfaction of customary closing conditions. Maxim Group is acting as the sole placement agent in connection with the offering.