U Power Limited (NASDAQ:UCAR) shares surged 58.69% to 0.88 after the bell on Tuesday after entering subscription agreements with seven purchasers to sell 2.9 million Class A shares.
The late-trading session gain follows a 2.11% jump in the regular session, closing at $0.55, according to Benzinga Pro data.
$3.19M Share Sale Supports Market Expansion
On Tuesday, after the market closed, U Power announced the sale of Class A shares at $1.10 per share, generating $3.19 million in gross proceeds. The board approved the transaction, which is expected to close on or about Tuesday.
The Chinese energy technology company plans to use the funds to expand in key markets, scale operations and accelerate deployment of its proprietary battery-swapping solutions.
The shares were offered in an offshore transaction under Regulation S to non-U.S. investors and have not been registered under the Securities Act of 1933, allowing the company to raise capital outside the U.S. without immediate Securities and Exchange Commission registration, provided the securities remain offshore.
CEO Johnny Lee said the transaction “reflects a strong alignment with investors who recognize the intrinsic value of our platform and the upside potential we are working to unlock.”
Earlier in April, U Power also announced a 10-for-1 reverse stock split, which consolidates its shares and adjusts its CUSIP number.
Trading Metrics, Technical Analysis
U Power has a market capitalization of $1.18 million, with a 52-week range of $0.38 to $49.80.
The stock has a Relative Strength Index (RSI) of 25.01.
Over the past 12 months, the small-cap stock has dropped 97.99%.
UCAR is currently trading very close to its annual low.
The stock has dropped sharply and is trading close to its 52-week low, highlighting significant pressure on the stock. Investors will likely wait for clear signs of a turnaround before confidence can return.
Benzinga’s Edge Stock Rankings indicate UCAR stock has a negative price trend across all time frames.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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