NEW YORK - UTime Limited (NASDAQ:WTO), a mobile device manufacturer known for its cost-effective products, has announced the sale of $5 million worth of ordinary shares to certain accredited investors through a registered direct offering. The company plans to sell approximately 7.7 million shares at a price of $0.65 each. The estimated gross proceeds of $5 million will be used before accounting for the offering expenses.
This funding initiative is expected to close by September 16, 2024, subject to customary closing conditions. The shares are being offered pursuant to a shelf registration statement, which was filed with the Securities and Exchange Commission (SEC) on April 24, 2024, and declared effective on June 10, 2024. Details of the offering will be available in a prospectus supplement and accompanying prospectus filed with the SEC.
UTime, established in 2008, has expanded its product range to include smart electric vehicle chargers since July 2023, in line with the global push for energy conservation and carbon reduction. The company focuses on making mobile technology accessible to low-income individuals in both established and emerging markets, including the United States, India, and regions in South Asia and Africa.
The press release also contains forward-looking statements regarding the company's plans and prospects, including its efforts to comply with NASDAQ's continued listing requirements. However, these statements are subject to various significant factors that could cause actual results to differ materially from expectations.
Investors interested in the offering may obtain the prospectus supplement and accompanying prospectus through the SEC's website or by contacting UTime directly.
The information for this article is based on a press release statement from UTime Limited.
InvestingPro Insights
As UTime Limited (NASDAQ:WTO) moves forward with its registered direct offering, investors are closely watching the company's financial metrics and market performance. According to InvestingPro data, UTime has a market capitalization of $13.87 million, reflecting its size in the competitive mobile device manufacturing industry. Notably, the company's shares are trading at a Price / Book multiple of 0.27, which is considered low and may indicate that the stock is undervalued relative to the company's book value.
InvestingPro Tips suggest that UTime has been quickly burning through cash, which aligns with the company's need to raise funds through the sale of shares. The offering price of $0.65 per share is close to the company's 52-week low, with the stock currently trading near this low point, as indicated by the previous close price of $0.77. This could present an opportunity for investors who believe in the company's potential for turnaround and long-term growth.
Furthermore, the company's revenue has seen a quarterly increase of 26.28% as of the last twelve months ending Q4 2024, suggesting that despite challenges, there are positive aspects in UTime's financial performance. However, it is important to note that the company is not profitable over the last twelve months, and the gross profit margin stands at a weak 5.15%, highlighting areas where the company may need to improve its operational efficiency.
For investors seeking a more comprehensive analysis of UTime Limited, there are additional InvestingPro Tips available at https://www.investing.com/pro/WTO, offering deeper insights into the company's financial health and market prospects.
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