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Even with all of the recent buying volume there always seems to be more shares available at the ask .
Since there is NO communication from the company , we shareholders can only wait until there is some positive break in the trading .
Market cap $20m. Yearly revenue $40m. Positive EPS. $.55 2021. $WETH
.08 eps for the q. PPS is undervalued using any evaluation metric. $WETH.
i will hold $WETH for $10+ pps, or for eternity, whichever comes first. this hold is based on year end 2020 eps of $.50, plus possible up list. let's see how it goes, besides eternity is not to long of a time:
https://www.otcmarkets.com/filing/html?id=15733539&guid=lSqwkn_z48R0dth
Surprise , another S-1/A is out ...
https://www.otcmarkets.com/stock/WETH/disclosure
https://www.otcmarkets.com/filing/html?id=15761484&guid=6zqwkeXRnsNaJth
Anything new ? I am tired of reading them ... LOL .
The question remains : Why "borrow" so much $$$ at such a low conversion rate when you have so much $$$ anyway ???
Smells "fishy" to me ...
NOTE 11 – CONVERTIBLE PROMISSORY NOTES PAYABLE
a) Convertible promissory notes
In October, November, and December 2021, the Company, issued seven (7) convertible promissory notes of US$2,250,000 aggregate principal amount, due in one year (the ‘Notes’) with issuance price discounted 90.0%. The Notes bear interest at a rate of 8.0% per annum, payable in one year and will mature on October 27, November 5, November 16, November 29 and December 2 of 2022. Net proceeds after debt issuance costs and debt discount were approximately US$1,793,000. Debt issuance costs in the amount of US$162,000 are recorded as deferred charges and included in the other current assets on the consolidated balance sheet. The debt discount and debt issuance costs are amortized into interest expense using the effective interest method over the terms of the Notes.
The details of convertible notes are as follows:
Unless the Notes are converted, the principal amounts of the Notes, and accrued interest at the rate of 8% per annum, are payable on the one-year anniversary of the issuance of the Notes (the “Maturity Date”). If the Company fails to satisfy its loan obligation by the Maturity Date, the default interest rate will be 16%.
The Lenders have the right to convert any or all of the principal and accrued interest on the Notes into shares of common stock of the Company on the earlier of (i) 180 calendar days after the issuance date of the Notes or (ii) the closing of a listing for trading of the common stock of the Company on a national securities exchange offering resulting in gross proceeds to the Company of $15,000,000 or more (an “Uplist Offering”). If the Company closes an Uplist Offering on or before the 180th calendar date after the issuance date of the Notes, the conversion price shall be 70% of the per share offering price in the Uplist Offering; otherwise, the conversion price is $0.75 per share.
Subject to customary exceptions, if the Company issues shares or any securities convertible into shares of common stock at an effective price per share lower than the conversion price of the Notes, the conversion rate of the Notes shall be reduced to such lower price.
Until the Notes are either paid or converted in their entirety, the Company agreed with the Lenders not to sell any securities convertible into shares of common stock of the Company (i) at a conversion price that is based on the trading price of the stock or (ii) with a conversion price that is subject to being reset at a future date or upon an event directly or indirectly related to the business of the Company or the market for the common stock. The Company also agreed to not issue securities at a future determined price.
The Lenders have the right to require the Company to repay the Notes if the Company receives cash proceeds, including proceeds from customers and the issuance of equity (including in the Uplist Offering). If the Company prepays the Notes prior to the Maturity Date, the Company shall pay a 10% prepayment penalty.
For the year ended December 31, 2021, the Company recognized interest expenses of the Notes in the amount of US$27,447.
The following is the summary of outstanding promissory notes as of December 31, 2021:
Interest rate Principal Amount Net Proceeds Warrants Shares Maturity Date
Convertible Note- Tarlos Victory (Note 9 (b)) 8 % $ 250,000 $ 197,000 200,000 October 27, 2022
Convertible Note-Mast Hill (Note 9 (b)) 8 % 750,000 601,000 600,000 November 5, 2022
Convertible Note-First Fire (Note 9 (b)) 8 % 250,000 197,000 200,000 November 16, 2022
Convertible Note-LGH Note 9 (b)) 8 % 250,000 207,000 200,000 November 24, 2022
Convertible Note -Fourth Man (Note 9 (b)) 8 % 250,000 197,000 200,000 November 29, 2022
Convertible Note-Jeffery Street Note 9 (b)) 8 % 250,000 197,000 200,000 December 2, 2022
Convertible Note -Blue Lake Note 9 (b)) 8 % 250,000 197,000 200,000 December 2, 2022
Total 2,250,000 1,793,000 1,800,000
Debt Discounts (225,000 )
Amortization of discounts for the year ended December 31, 2021 5,550
Convertible Promissory Notes payable as of December 31, 2021 $
2,030,550
*The Company prepaid $10,000 legal deposit for each note till the repayment of the notes.
F-18
b) Warrants
Accounting for Warrants
In connection with the issuance of a convertible promissory notes (see Note 11 (a) in October, November and December, 2021, the Company also issued seven (7) three-year warrant (the “Warrant”) to purchase an aggregate of 1,800,000 shares of the Company’s common stock (the “Warrant Shares”).
The Warrants issued to the Lenders granted each of the Lenders the right to purchase up to 200,000 shares of common stock of the Company at an exercise price of $1.25 per share. However, if the Company closes an Uplist Offering on or before the 180th calendar date after the issuance date of the Warrants, then the exercise price shall be 125% of the offering price of a share in the Uplist Offering. If the adjusted exercise price as a result of the Uplist Offering is less than $1.25 per share, then the number of shares for which the Warrants are exercisable shall be increased such that the total exercise price, after taking into account the decrease in the per share exercise price, shall be equal to the total exercise price prior to such adjustment.
The Lenders have the right to exercise the Warrants on a cashless basis if the highest traded price of a share of common stock of the Company during the 150 trading days prior to exercise of the Warrants exceeds the exercise price, unless there is an effective registration statement of the Company which covers the resale of the Lenders.
If the Company issues shares or any securities convertible into shares at an effective price per share lower than the exercise price of the Warrants, the exercise price of the Warrants shall be reduced to such lower price, subject to customary exceptions.
The Lenders may not convert the Notes or exercise the Warrants if such conversion or exercise will result in each of the Lenders, together with any affiliates, beneficially owning in excess of 4.9% of the Company’s outstanding common stock immediately after giving effect to such exercise unless the Lenders notify the Company at least 61 days prior to such exercise.
The fair values of these warrants as of December 31, 2021 were calculated using the Black-Scholes option-pricing model with the following assumptions:
December 31, 2021
Volatility (%) Expected dividends yield (%) Weighted average expected life (year) Risk-free interest rate (%) (per annum) Initial value of common stock purchase warrants liability (US$) Changes of fair value of common stock purchase warrants liability (- (gains)/+ losses(US$) Common stock purchase sarrants liability as of December 31, 2021(US$)
Convertible Note- Tarlos Victory (Note 9 (a)) 187.3 % $ 0.0 % $ 2.8 0.97 % 311,649 (186,893 ) 124,756
Convertible Note-Mast Hill (Note 9 (a)) 187.3 % 0.0 % 2.8 0.97 % 576,233 (201,077 ) 375,156
Convertible Note-First Fire (Note 9 (a)) 187.3 % 0.0 % 2.9 0.97 % 196,037 (70,629 ) 125,408
Convertible Note-LGH Note 9 (a)) 187.3 % 0.0 % 2.9 0.97 % 214,644 (88,980 ) 125,664
Convertible Note -Fourth Man (Note 9 (ab)) 187.3 % 0.0 % 2.9 0.97 % 214,867 (89,046 ) 125,821
Convertible Note-Jeffery Street Note 9 (a)) 187.3 % 0.0 % 2.9 0.97 % 187,338 (61,423 ) 125,915
Convertible Note -Blue Lake Note 9 (a)) 187.3 % 0.0 % 2.9 0.97 % 187,338 (61,423 ) 125,915
Total Total 1,888,106 (759,471 ) 1,128,635
F-19
Results of Operations
Highlights for the year ended December 31, 2021 include:
? Revenues were $40.8 million, an increase of 30.0% from $31.3 million for the year ended December 31, 2020
? Gross profit was $18.4 million, an increase of 17.9% from $15.6 million for the year ended December 31, 2020
? Net income was $17.4 million, an increase of 95.5% from $8.9 million for the year ended December 31, 2020
? Total volume shipped was 1,922,353 units, an increase of 16.1% from 1,656,050 units for the year ended December 31, 2020
Results of Operations
The following table sets forth, for the periods indicated, statements of income data:
(in US Dollar millions,
except percentage) For the Years Ended December 31, Change
2021 2020 %
Revenues $ 40.8 $ 31.3 30.0 %
Cost of revenues (22.4 ) (15.7 ) 42.7 %
Gross profit 18.4 15.6 17.9 %
Total operating expenses (5.8 ) (3.7 ) 56.8 %
Operating income 12.6 11.9 5.9 %
Total other income (expenses) 9.2 (1.4 ) 757.1 %
Income before income taxes 21.8 10.4 107.6 %
Income tax benefit (expense) (4.4 ) (1.5 ) 193.3 %
Net income $ 17.4 $ 8.9 95.5 %
For the Years Ended December 31, 2021 and 2020
Revenues
Revenues were $40.8 million in the year ended December 31, 2021, an increase of $9.4 million, or 30.0%, compared with $31.3 million in the year ended December 31, 2020. This increase was due to the increase of 16.1% in sales volume, an increase of 12.1% in the average selling price of our products, and 6.6% positive impact from exchange rate due to appreciation of RMB against US dollars, as compared with those of the same period of last year.
$WETH 10K is published ...
https://www.otcmarkets.com/stock/WETH/disclosure
https://www.otcmarkets.com/filing/html?id=15733539&guid=jBewkK5UOIH3dth
Looks pretty good to me ... but ... WTFDIK ?
Form 3’s for
BOARD OF DIRECTORS
Guangde Cai
Chairman
Jiaying Cai
Jing Chen
Independent Director, Audit Committee Member, Compensation Committee Member, Nominating Committee Member
Jeffrey Kone
Independent Director, Audit Committee Member, Compensation Committee Member, Nominating Committee Member
Wei Wang
Independent Director, Audit Committee Member, Compensation Committee Member, Nominating Committee Member
Some new SEC filings to peruse ...
https://www.otcmarkets.com/stock/WETH/disclosure
4k for sell @ .6 - no takers. no one hovering- no one wanting to touch $WETH currently. maybe later. hope springs eternal.
A N O T H E R ... S-1A has been posted ... ARHHHHHH ! ! ! ... WTF ...
https://www.otcmarkets.com/stock/WETH/disclosure
Stay safe >> M
"As of September 30, 2021, our cash and cash equivalents were $54.1 million, as compared to $24.0 million at December 31, 2020."
Outstanding Shares
31,811,523
02/04/2022
Confusing, for sure…..
Didn't seem like a problem when the stock was trading at $4.00 ...
My guess is that the "thieves" the company lined up to provide funding have been "shorting against the box" all this time
driving the price down so they will be issued more shares for their funding .
What do they need this funding for with all the supposed cash they report in their filings ???
Smells to me like poop .
Stay safe >> M
SEC Filing Obligations
We became subject to the filing requirements of the Securities Exchange Act of 1934, as amended, as a result of our Form 10 being declared effective by the Securities and Exchange Commission (the “Commission”) on December 11, 2020.
We filed a Form S-1 registration statement with respect to the resale by 44 selling stockholders identified in the prospectus for an aggregate of 15,889,371 shares of common stock of the Company. The registration statement was declared effective by the Commission on January 7, 2021 (Registration No. 333-251845).
Listing on OTCQB Market
On February 15, 2021, we applied to the OTC Markets to have our shares quoted on the OTCQB, which was approved on March 26, 2021. Effective March 29, 2021, our shares started trading on OTCQB under the symbol “WETH.”
Listing on the Nasdaq Capital Market
Our common stock is currently quoted on the OTCQB under the symbol “WETH.” In connection with this Underwritten Offering, we applied to list our common stock on the Nasdaq Capital Market (“Nasdaq”) under the symbol “WETH.” If our listing application is approved, we expect to list our common stock on Nasdaq upon consummation of the Underwritten Offering, at which point our common stock will cease to be traded on the OTCQB. No assurance can be given that our listing application will be approved. Nasdaq listing requirements include, among other things, a stock price threshold. As a result, prior to effectiveness, we will need to take the necessary steps to meet Nasdaq listing requirements, which may include, but not limited to, effectuating a reverse split of our common stock at a ratio between 1-for-2 and 1-for-10 (estimated based on the current market price of our common stock). There can be no assurance that our common stock will be listed on the Nasdaq.
Fresh S-1A has been posted : https://www.otcmarkets.com/stock/WETH/disclosure
Promissory notes now included : https://www.otcmarkets.com/filing/html?id=15512074&guid=AQCwkFzAdOaFJth
GO TEAM ...
$ 54m cash per 09/30 and they sell notes over and over?
Smells fishy!!!!
Oh great , another S-1/A ... We're going to the Nasdaq .. Yippie ! ! !
https://www.otcmarkets.com/filing/html?id=15441243&guid=6xfwkpJOCvMzUih
You figure out what it says .. LOL
Stay safe and happy holidays ... >> M
Opportunity knocks. As seen on tv - hover touch- can now be yours for the discounted price of only .95 per share. $WETH $$
Somebody puts up some nice bid support and then BAM , SMACK < SMACK like wack-a-mole ..
SAD , sad , sad ...
Stay safe >> M
Ok. I’ll look. Great news.
It’s buried in the filings and
mentioned in the S-1.
Tick. Tick. Tick. Boom.
WETH
What month did they announce nasdaq? I’ll look.
Guess you don’t read the filings?
True but I hope they apply for it.
NASDAQ will be their microphone.
Stay tuned.
HoverTouch for the Win!
WETH
Market cap is cheap
Chinese based in Sichuan. Poor communication.
Keyword: Yet.
There has been zero communication.
I can read tho.
And so can you.
We’re just early.
WETH
Strong fundamentals but no liquidity in the shares.
Another promissory note : https://www.otcmarkets.com/filing/html?id=15357018&guid=FE3wkpytg4wfJth
Stay safe >> M
Read the latest filing. Application is in. Kickers based on approval date.
Everybody says they will be trading on NASDAQ
I’m here for when the appointment with NASDAQ concludes.
At a buck thirteen ? What good would that do ?
I have lost faith in this stock so , I will take a break .
Stay safe >> M
On September 13, 2021, the Company filed a registration statement (No. 333-259499) with the SEC to offer and sell shares of common stock in an underwritten offering through Craft Capital Management LLC and R.F. Lafferty & Co., Inc.
The Company also filed an application to have its shares of common stock listed on the Nasdaq Capital Market.
WETH
Cash on hand As of June 30, 2021 $ 52,594,357
https://www.otcmarkets.com/filing/conv_pdf?id=15149095&guid=eRtwknSGDNG9dth
Not sure why they needed the spare change?
https://www.otcmarkets.com/filing/html?id=15333612&guid=ut8wkKyjFyTWdth
Item 1.01 Entry into a Material Definitive Agreement. Convertible Note
On November 3, 2021, Wetouch Technology Inc., a Nevada corporation (the “Company”), entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Talos Victory Fund, LLC, a Delaware limited liability company (the “Lender”), dated as of October 27, 2021, pursuant to which the Company issued the Lender a convertible promissory note in the principal amount of $250,000 (the “Note”) and a three-year warrant (the “Warrant”) to purchase an aggregate of 200,000 shares of the Company’s common stock (the “Warrant Shares”). The Company received $225,000 gross proceeds from the issuance of the Note as a result of the original discount rate on the note.
Links not opening for me
Ah Ha ! Now , an explanation for the current share price ...
Maybe it was overpriced all along . Thanks Zongyi Lian , for throwing us under the bus .
https://www.otcmarkets.com/filing/html?id=15333612&guid=ut8wkKyjFyTWdth
Stay safe >> M
Yeah and at $1.13 it’s delicious.
I’ll ride this slow & quiet train while they secretly build another factory to produce their Hover Touch technology.
And once the S-1 is effective, I’m expecting that they uplist to Nasdaq and pull back the veil. See you then.
WETH
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