BEIJING, Nov. 20, 2017 /PRNewswire/ -- Recon Technology,
Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a China-based independent solutions integrator
in the oilfield service, electric power and coal chemical
industries, today announced that it has executed a securities
purchase agreement (the "Agreement") with Mr. Bi Yongquan ("Mr. Bi"), pursuant to which
Mr. Bi has agreed to purchase 3 million restricted ordinary shares
(the "Shares") of the Company for an aggregate of $4.8 million (the "Purchase Price"). The Purchase
Price is $1.60 per share, a 12.6%
premium over the closing price of $1.4027 per share on November 17, 2017. Mr. Bi founded Bo Qi Group in
2009 and now is the chairman of Bo Qi Group, a company focused on
the oil and gas industry in China.
The Purchase Price will be paid in two installments. Mr. Bi paid
the first installment of $2.4 million
to the Company by November 20, 2017.
The second installment of $2.4
million will be made on or before January 20, 2018. The parties have agreed that
the Company will not issue any of the 3 million restricted shares
to Mr. Bi or his nominee until the earlier of receipt of this
second installment or January 20,
2018. If Mr. Bi fails to pay the second installment for any
reason by such time, the Company will issue only 1.5 million shares
in respect of the first payment. The parties have agreed that the
Shares are not being registered and may not be sold, gifted,
pledged or otherwise transferred or assigned until January 20, 2020.
The Shares issued to Mr. Bi or his nominee have not been and are
not being registered under the 1933 Act, and, in addition to the
foregoing lock-up agreement, may not be offered for sale, sold,
assigned or transferred unless (A) subsequently registered
thereunder or (B) the Buyer shall have delivered to the Company an
opinion of counsel, in a form reasonably acceptable to the Company,
to the effect that such Shares to be sold, assigned or transferred
may be sold, assigned or transferred pursuant to an exemption from
such registration.
The company intends to use the net proceeds from this Financing
to fund its working capital, product development and marketing,
research and development and other general corporate purposes
About Recon Technology, Ltd. (NASDAQ: RCON)
Recon Technology, Ltd. is China's first listed
non-state owned oil and gas field service company on NASDAQ. Recon
supplies China's largest oil exploration companies,
Sinopec (NYSE: SNP) and CNPC, with advanced automated technologies,
efficient gathering and transportation equipment and reservoir
stimulation measure for increasing petroleum extraction levels,
reducing impurities and lowering production costs. Through the
years, RCON has taken leading positions on several segmented
markets of the oil and gas filed service industry. RCON also has
developed stable long-term cooperation relationship with its major
clients, and its products and service are also well accepted by
clients. For additional information please
visit: www.recon.cn.
Forward-looking Statements
This news release contains forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, fulfillment of bids and contracts,
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. 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.
Company Contact
Recon Technology, Ltd.
+86 (10) 8494-5799
info@recon.cn
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SOURCE Recon Technology, Ltd.