NEW YORK, August 3, 2026, 06:00 EDT
- In premarket trading, shares were at $7.39, marking a 133.9% increase from Friday’s closing price.
- A filing dated July 31 indicated the issuance of 4.377 million additional Class A shares.
- The value of those consideration shares stood at approximately $32.3 million based on the premarket price, tripling the declared deal amount.
Shares of Universe Pharmaceuticals INC NASDAQ:UPC surged over 100% ahead of Monday’s session after the company revealed the completion of its Best Praise International acquisition. With the primary Nasdaq market still closed, trading was occurring in the premarket.
The filing updates how the valuation is measured. The number of Class A shares outstanding increased to 5.008 million, up from an implied 631,761, marking a 693% jump.
With a price of $7.39, the increased number of Class A shares suggested a total value of $37.0 million. As of early Monday, MarketWatch continued to display 631,760 shares and a $2 million valuation. These numbers were based on the previous share amount.
The repricing started following the close of Friday’s standard session. Volume stood at 11.83 million shares, well above the 65-day average of 1.57 million.
| Trading measure | Price or volume | Change or context |
|---|---|---|
| Friday closing price | $3.16 | Fell 9.2% |
| Friday after-hours | $6.35 | Surged 101.0% compared to the close |
| Monday premarket, 06:00 ET | $7.39 | Jumped 133.9% from the close |
| Friday regular volume | 11.83 million | 7.55 times the 65-day average |
| 52-week range | $2.00–$17.96 | Premarket still trailing the high |
Universe has acquired Best Praise in full, giving it ownership of five patents in China. These assets span age-related illnesses, cognitive disorders, and technologies for drug delivery.
The company paid with 4.377 million restricted Class A shares. After the transaction, it disclosed holding 5.008 million Class A shares and 16,077 Class B shares.
| Share-count comparison | Shares | Calculated effect |
|---|---|---|
| Implied Class A shares prior to transaction | 631,761 | Base |
| Additional shares to be issued | 4,376,552 | 692.8% of previous total |
| Total Class A shares post-issuance | 5,008,313 | 7.93 times the prior amount |
| Proportion of new shares in total Class A after deal | — | 87.4% |
| Class B outstanding post close | 16,077 | Remain outstanding as a separate class |
The deal, entirely in stock, carried a valuation of $10.751 million. This amounts to approximately $2.4565 per consideration share.
Based on Monday’s premarket value, the shares were worth $32.3 million, about $21.6 million higher than the agreed purchase price.
| Valuation of consideration shares | Share price | Implied value | Multiple of deal price |
|---|---|---|---|
| Contractual issue value | $2.4565 | $10.75 million | 1.00 |
| Friday closing price | $3.16 | $13.83 million | 1.29 |
| Friday after trading hours | $6.35 | $27.79 million | 2.58 |
| Early trading Monday | $7.39 | $32.34 million | 3.01 |
Chief Executive Gang Lai stated in June that the deal may “broaden its product pipeline.” The final filing did not disclose revenue or profit figures for Best Praise. GlobeNewswire
Universe reported its new baseline of operations, with revenue for the half-year down 1.3%. Gross margin rose by 2.4 percentage points, and net loss was reduced by 52.7%.
| Six months ended March 31 | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | $9.04 million | $9.15 million | down 1.3% |
| Gross profit | $3.34 million | $3.16 million | up 5.6% |
| Gross margin | 37.0% | 34.6% | increase of 2.4 points |
| Net loss | $1.55 million | $3.28 million | 52.7% narrower loss |
| Operating cash flow | -$4.30 million | $2.56 million | shifted negative by $6.86 million |
The increase in margin occurred even though product volumes decreased. Volumes for traditional Chinese medicine dropped by 26.2%. Third-party product volumes slipped 19.2%, while the average selling price for these products jumped 81.5%.
As of March 31, cash amounted to $27.6 million. Short-term investments came to $1.49 million, and bank loans reached approximately $9.55 million. The company used $4.30 million in operations during the half.
By the end of regular trading on Friday, the stock was down 8.4% for the week and had dropped 47.3% in one month. The rally after hours reversed that trend, at least for now.
The regular session on Monday starts at 09:30 ET. Investors are set to gauge the rally with the increased number of shares. These consideration shares are still restricted but include future resale-registration clauses in line with securities regulations.
Risks: Prices after hours may fluctuate significantly. Uncertainty surrounds the patents’ validity and commercial prospects. Additional registered resales could increase supply, and the current business is still using cash.
