BEIJING, June 23, 2020 /PRNewswire/ -- Recon Technology,
Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced it
has entered into a memorandum of understanding (the "MOU") with
Beijing Originwater Purification Engineering Technology Co. Ltd
("Originwater Purification Engineering"), a PRC private company
focusing on water purification industry in China. Pursuant to the MOU dated June 22, 2020, the Company will explore the
purchase of up to 100% of the equity interest or assets of
Originwater Purification Engineering from the current shareholders
at a price to be agreed upon by the Parties. The purchase price
will be based on the assessed value of Originwater Purification
Engineering as determined by an independent third-party evaluation
firm and will be paid in cash and the Company's restricted ordinary
shares.
Because the Company's Chief Technology Officer and director
Guangqiang Chen is a significant
shareholder of Originwater Purification Engineering, the Board of
Directors of the Company has established a special committee
consisting solely of independent, disinterested directors to
evaluate the MOU and transaction. All interested directors have
recused themselves from Board participation in the transaction, and
the transaction is being evaluated as a related party transaction.
The terms and conditions of a definitive agreement are currently
being negotiated between the two parties. Further details will be
disclosed upon completion of the definitive agreement.
About Recon Technology, Ltd.
Recon Technology,
Ltd. (RCON) is China's first non-state-owned
oil and gas field service company listed on NASDAQ. Recon
supplies China's largest oil exploration companies with
advanced automated technologies, efficient gathering and
transportation equipment and reservoir stimulation measures for
increasing petroleum extraction levels, reducing impurities and
lowering production costs. Since 2017, the Company has expanded its
business operations into other segments of the broader energy
industry including electric power, coal chemicals, renewable energy
and environmental protection in the energy and chemical industries.
Through the years, Recon has taken leading positions on several
market segments of the oil and gas field service industry. Recon
also has developed stable long-term cooperation relationships with
its major clients, and its products and service are well accepted
by clients. For additional information please
visit: www.recon.cn.
About Beijing Originwater Purification Engineering Technology
Co. Ltd
Founded in 2016 by 20% shareholder Beijing OriginWater Technology
Co. Ltd. (300070.SZ), Beijing Originwater Purification Engineering
Technology Co. Ltd is a one-stop solution provider that has
dedicated itself to resolving China's three main water
issues: water pollution, water shortage and drinking water
insecurity. Originwater Purification Engineering is a high-tech
company with a complete water treatment industry chain background,
specialized in design of water treatment process, equipment
production and water treatment project construction and operation
management.
Cautionary Statements
Statements made in this release with respect to Recon's
current plans, estimates, strategies and beliefs and other
statements that are not historical facts are forward-looking
statements about the future performance of Recon. Forward-looking
statements include, but are not limited to, those statements using
words such as "believe," "expect," "plans," "strategy,"
"prospects," "forecast," "estimate," "project," "anticipate,"
"aim," "intend," "seek," "may," "might," "could" or "should," and
words of similar meaning in connection with a discussion of future
operations, financial performance, events or conditions. From time
to time, oral or written forward-looking statements may also be
included in other materials released to the public. These
statements are based on management's assumptions, judgments and
beliefs in light of the information currently available to it.
Recon cautions investors that a number of important risks and
uncertainties could cause actual results to differ materially from
those discussed in the forward-looking statements, including but
not limited to, the timing of the development of future products,
projections of revenue, earnings, capital structure and other
financial items, product and service demand and acceptance, changes
in technology, economic conditions, the impact of competition and
pricing, government regulation, and other risks contained in
reports filed by the company with the Securities and Exchange
Commission. Therefore investors should not place undue reliance on
such forward-looking statements. Actual results may differ
significantly from those set forth in the forward-looking
statements.
All such forward-looking statements, whether written or oral,
and whether made by or on behalf of the company, are expressly
qualified by the cautionary statements and any other cautionary
statements which may accompany the forward-looking statements. In
addition, the company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date hereof.
IR Contact:
Liu Jia, Chief Financial
Officer
Recon Technology, Ltd.
Tel: +86-10-8494-5799
Email: info@recon.cn
View original
content:http://www.prnewswire.com/news-releases/recon-technology-enters-into-memorandum-of-understanding-to-acquire-beijing-originwater-purification-engineering-301081697.html
SOURCE Recon Technology, Ltd.