New York, May 22, 2026, 15:01 (EDT)
- UTime shares moved higher on Friday after a May 21 SEC filing showed the company closed a private placement of about $50 million.
- The company, which trades on the Nasdaq, sold 50 million units at $1 per unit. Each unit is made up of a Class A share and a warrant good for buying four more shares.
- The stock is rallying ahead of Monday’s U.S. equity market close for Memorial Day.
UTime Limited jumped Friday after a filing said the Shenzhen firm closed a private placement of about $50 million. The new capital may boost working funds but also leaves the company with a hefty warrant overhang.
Shares on the Nasdaq last changed hands near $1.07, up about 16% from the prior close at $0.9198, after swinging between $0.9001 and $1.20 earlier, according to market data. The Nasdaq Composite added roughly 0.4% in mid-afternoon trading.
The timing here is in focus. UTime’s filing hit during the main Nasdaq session, just before a long U.S. holiday break. Nasdaq’s regular hours are 9:30 a.m. to 4 p.m. Eastern, and U.S. stock and options markets are set to be closed on Monday, May 25 for Memorial Day.
The company said in a Form 6-K filed May 21 that it wrapped up the private placement on May 19 under Regulation S, which covers securities sold offshore. The deal brought in around $50 million before fees and expenses.
UTime sold 50 million units for $1 each. Each unit had one Class A ordinary share and a warrant. The warrant lets holders buy four Class A shares at $1.10 apiece. Warrants are exercisable right away and run until May 18, 2031.
UTime said its officers and directors have signed 180-day lock-up deals, so they can’t sell or get rid of any shares they own or will get during that stretch. The company said net proceeds are set for working capital and other company needs.
UTime shares moved Friday following a set of financing and strategy developments. Back on May 4, UTime finished a best-efforts registered direct offering, raising around $1.2 million. The company sold 200,000 Class A shares and pre-funded warrants for another 800,000 shares.
UTime is looking to grow outside of mobile devices and smart hardware. Earlier this month, the company said due diligence is still in progress for a possible transaction with Feixiaohao Technology Inc., a Web3 data platform. Web3 usually means blockchain-based internet. CEO Hengcong Qiu called the planned deal an “important strategic opportunity” while UTime checks out digital tech and Web3 infrastructure business lines. GlobeNewswire
UTime says the move would bring it closer to crypto data players like CoinMarketCap and CoinGecko, known for tracking crypto prices, market cap and volume. Feixiaohao is still just a proposal, and those two data services are not in UTime’s filing.
Dilution is the risk here. If holders exercise the new warrants, UTime could put out a lot more shares. That would cut the percentage owned by current investors. In an earlier prospectus supplement, the company also warned that selling more Class A shares—or even the expectation that more sales are coming—could pressure the stock price.
UTime also flagged a listing problem in its prospectus. The company said Nasdaq Capital Market rules demand the average closing price of its listed Class A shares stays above $1 for 30 business days. If it doesn’t, UTime could face delisting for not meeting the exchange’s standards.
Right now, traders are pushing the stock up after the company raised more cash. The bigger issue is what the new capital actually does, and how future shares from warrants might eat into any gains.
