NEW YORK, June 16, 2020 /PRNewswire/ -- WeissLaw
LLP is investigating possible breaches of fiduciary duty and
other violations of law by the board of directors of China XD
Plastics Company Limited ("CXDC" or the "Company") (NASDAQ: CXDC)
in connection with the proposed conflicted, interested-party
acquisition of the Company by Faith Dawn Limited
("Faith Dawn"), an entity owned by
CXDC's CEO, board chairman and majority owner Mr. Jie Han. Under the terms of the
acquisition agreement, Faith Dawn
will acquire all outstanding shares of CXDC for $1.20 per share in cash. Since Mr. Han also
owns 50.1% of the common shares of CXDC, he effectively controls
the Company and stands on both sides of the proposed
acquisition.
If you own CXDC shares and wish to discuss this investigation
or have any questions concerning this notice or your rights or
interests, visit our website:
http://www.weisslawllp.com/china-xd-plastics-company-limited/
Or please contact:
Joshua Rubin, Esq.
WeissLaw LLP
1500 Broadway, 16th Floor
New York, NY 10036
(212) 682-3025
(888) 593-4771
stockinfo@weisslawllp.com
Given the obvious conflicts inherent in the merger, WeissLaw is
investigating whether CXDC's board acted independently in agreeing
to the proposed acquisition and whether the $1.20 per share merger consideration reflects
adequate compensation and maximum value for CXDC
stockholders. As recently as January
2020, CXDC shares traded as high as $2.44 (more than double the per-share merger
consideration), and the Company recently announced fiscal year 2019
revenue of $1.45 million,
representing 13.6% year-over-year revenue growth and further
calling into question the fairness of the deal.
Given these facts, WeissLaw is concerned whether CXDC's board
was truly independent in agreeing to the proposed acquisition,
whether the proposed acquisition undervalues the Company, and
whether all material information related to the proposed
acquisition is fully and fairly disclosed.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients and obtained important corporate governance
relief in many of these cases. If you have information or
would like legal advice concerning possible corporate wrongdoing
(including insider trading, waste of corporate assets, accounting
fraud, or materially misleading information), consumer fraud
(including false advertising, defective products, or other
deceptive business practices), or anti-trust violations, please
email us at stockinfo@weisslawllp.com
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SOURCE WeissLaw LLP