WeTouch Technology Inc. (NASDAQ: WETH) secured $38,797,287.50 in gross proceeds on July 31, 2026, through a private placement of 31,037,830 common shares at $1.25 per share, funded entirely by its controlling shareholder platforms. The transaction, expected to close on or about August 4, 2026, represents a primary equity issuance where all cash proceeds flow directly to the company to support core business expansion and product upgrades, rather than serving as an exit for insiders. The purchase price reflects a premium to the applicable Nasdaq Minimum Price, signaling strong confidence from the founder, directors, and management team in the company’s long-term strategic potential.

The purchasers, Qixun Technology Limited and Qihong Technology Limited, are investment holding platforms controlled by WeTouch’s leadership team. Under the agreement, these entities have agreed to a contractual 12-month lock-up period, prohibiting the sale or transfer of the acquired shares without prior written consent from the company. Additionally, the purchasers have committed to refraining from short-selling or share-lending activities involving WeTouch’s securities. This structure ensures that the capital injection strengthens the company’s balance sheet without creating immediate dilution pressure from secondary market sales.

Strategic Deployment of Capital

Management retains discretion over the deployment of the raised funds, which are earmarked for several key growth initiatives. The capital will support the company’s transformation from a manufacturer of professional touch display products into a provider of integrated touch solutions and intelligent terminal systems. Specific areas of investment include:

• Core business expansion and product upgrades in touch display solutions.
• Research and development for complete-system design and commercialization.
• Expansion into intelligent interactive terminals, human-machine interaction systems, and robotics components.
• Potential strategic acquisitions or business integrations that add manufacturing capabilities or complementary product portfolios.

CEO Jack Zongyi Lian emphasized that the transaction underscores the leadership’s commitment to long-term value creation. "At a time when we believe our public market valuation does not fully reflect the Company’s underlying operating strengths... our founder, directors and management team chose to commit additional cash capital... at a premium price," Lian stated. He clarified that this is not a sale of existing shares but a direct investment to support the next stage of development, including improving operating efficiency and expanding into robotics.

Transaction Details

The shares were offered in reliance on exemptions from registration under the Securities Act of 1933, including Section 4(a)(2) and Rule 506 of Regulation D. Upon closing, the issuance will increase the number of outstanding common shares, diluting the percentage ownership of existing shareholders while consolidating the long-term ownership position of the founder and management team through their controlling platforms.

WeTouch Technology Inc. (NASDAQ: WETH) announced on July 28, 2026, that its Board of Directors has approved a special cash dividend plan distributing up to US$0.5 million to eligible shareholders. The move aims to enhance shareholder value and improve capital allocation efficiency while maintaining sufficient resources for business growth and strategic investments.

The dividend is expected to amount to approximately US$0.04 per share, based on the company’s current outstanding common shares. Shareholders of record as of August 17, 2026, will be eligible to receive the distribution, which is scheduled for payment before September 30, 2026. This timeline ensures prompt returns to investors following the determination of eligibility.

Strategic Context and Management Commentary

Jack Zongyi Lian, Chief Executive Officer of WeTouch Technology Inc., stated that the Board’s approval reflects the company’s commitment to enhancing shareholder value. He emphasized that while continuing to invest in future growth opportunities, the company seeks to share development benefits with shareholders when financial conditions permit.

The special dividend aligns with WeTouch’s balanced capital allocation approach. Management intends to demonstrate disciplined capital management by rewarding long-term investors without compromising the ability to fund operational needs, technology innovation, or strategic partnerships. The company maintains a strong financial position and robust cash reserves, enabling it to advance its global touch display business and pursue product upgrades.

Future Outlook and Business Transformation

Looking ahead, WeTouch Technology intends to focus on core technology innovation, global market expansion, and strategic business opportunities. The company is advancing its transformation from a traditional touch display and component supplier toward a higher-value-added intelligent hardware manufacturer and system-level solution provider.

Management highlighted emerging growth areas including smart hardware, robotics components, robotic system integration, and artificial intelligence applications. The company believes its financial foundation and focus on capital allocation will support these future strategic developments and long-term growth.

Subject to future financial performance, cash position, business requirements, applicable legal requirements, and Board approval, WeTouch may consider additional cash dividends from time to time. The Board also expects to evaluate the feasibility of adopting an annual cash dividend policy over the longer term, allowing shareholders to participate in the company’s sustained value creation. Any future dividend timing and amount will remain subject to the Board’s discretion and the company’s financial condition at the relevant time.