LISHUI, China, Jan. 10, 2018 /PRNewswire/ -- Tantech Holdings
Ltd. (NASDAQ: TANH) ("Tantech" or the "Company"), a clean energy
company in China, announced today
that the Company has signed a share purchase agreement (the
"Agreement") with Shanghai Shicai Minerals Co., Ltd. ("Shanghai
Shicai") to acquire all of the shares of Lishui Xincai Industrial
Co., Ltd. ("Lishui XinCai"), a wholly-owned subsidiary of Shanghai
Shicai, at a price of RMB120 million,
or $18.2 million. Lishui Xincai owns
18% of the equity interest in Libo Haokun Stone Co., Ltd. ("Libo
Haokun"). Following the completion of the acquisition, the Company
would indirectly hold a 18% stake in Libo Haokun.
Libo Haokun holds a government-issued permit and has the
exclusive right to mine a 0.11-square-kilometer marble quarry in
the southwestern province of Guizhou,
China. According to a geological report issued by Liaoning
Nuclear Geological Survey Institute in June
2016, the quarry had estimated reserves of approximately
4.02 million cubic meters of ores. As of the date of the valuation
conducted in December 2016, the
quarry had estimated reserves of approximately 3.74 million cubic
meters of ores and the corresponding mining right was valued at
RMB664.74 million. Libo Haokun
obtained the permit to mine the quarry from the local government in
September 2016. The current mining
permit has a term of two years and eight months valid from
September 2016 to May 2019. The mining permit may be renewed for
consecutive additional three-year terms, subject to certain
conditions, such as filing renewal applications, paying license
fees, and the satisfaction of environmental protection standards,
among other things.
Ms. Weina Qu, Legal
Representative of Shanghai Shicai, said that the acquisition of the
mining interest by Tantech could help Libo Haokun improve
shareholder structure and increase revenue by capitalizing on
Tantech's sales network.
Mr. Zhengyu Wang, Chairman and
Chief Executive Officer of Tantech, commented, since its
establishment, Tantech has accumulated rich customer resources and
built a strong brand image in home decoration and indoor air
purification. With China's growing
economy and rising household income, marble has become a favored
choice for commercial construction and home decoration uses because
of its endurance and environmentally friendly fabrication process.
Marble has been widely used in iconic landmarks in China, such as the Great Hall of the People,
as well as major urban construction projects, such as hospitals,
premium hotels and buildings, airports and subways. As Tantech is
transitioning its business towards the development and
manufacturing of diversified sustainable energy and environmentally
friendly products, the investment is aligned with its commitment to
contributing to a greener world.
Pursuant to the Agreement, Tantech agrees to acquire all issued
and outstanding common shares of Lishui Xincai for a total
consideration of RMB120 million in
cash to be paid in two installments. The first installment of
RMB25 million will be paid within
five business days following the execution of the Agreement. The
second and final installment of RMB95
million will be paid within thirty days after the signing of
the Agreement. Shanghai Shicai agrees to complete the registration
process with the industrial and commerce administration of the
local government before January 31,
2018, for transfer of the share ownership of Lishui Xincai
to Tantech. Tantech will be legally recognized as the shareholder
of Lishui Xincai upon the completion of the share ownership
transfer registration.
The acquisition will be funded from Tantech's existing cash
resources and cash to be received on its accounts receivable.
About Tantech Holdings Ltd.
Established in 2001 and headquartered in Lishui
City, Zhejiang Province, China, Tantech Holdings Ltd.,
together with its subsidiaries, develops and manufactures
bamboo-based charcoal products, including a variety of branded
consumer products and electric double-layer capacitor ("EDLC")
carbon products for industrial energy applications. The Company
aims to transform itself from a bamboo-based charcoal products
producer to a vertically integrated company with a focus on
diversified sustainable energy products including new energy
vehicles. As part of the transition, the Company is in the process
of divesting its EDLC carbon business. For more information please
visit: http://www.tantechholdings.com.
About Suzhou E Motors Co., Ltd.
Established in April 2011 Suzhou E
Motors Co., Ltd. ("Suzhou E Motors") is an innovative leader in the
design, manufacture and distribution of electric vehicles ("EVs").
With outstanding quality and reliable battery production, our
system enables to effectively integrate renewable and conventional
energy sources across all our product lines. Suzhou E Motors offers
a wide range of EVs, including urban sanitary vehicles, electric
logistics vehicles and mini tourist buses with current annual
capacity of approximately 5,000 EVs. For more information please
visit: http://www.emotorsbus.com.
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, changes in technology, economic
conditions, the impact of competition and pricing, government
regulations, 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
this cautionary statement 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.
For more information please contact:
Tantech Holdings Ltd.
Ms. Ye Ren
IR Manager
+86-578-261-2869
ir@tantech.cn
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SOURCE Tantech Holdings Ltd.