BEIJING, May 22, 2020
/PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or
the "Company") announced today it has entered into a securities
purchase agreement with certain accredited investors on May 21,
2020 to purchase approximately $2.1 million worth of its ordinary shares in a
registered direct offering and warrants to purchase ordinary shares
in a concurrent private placement.
Under the terms of the securities purchase agreement, the
Company has agreed to sell approximately 0.9 million ordinary shares.
In a concurrent private placement, the Company has agreed to issue
unregistered warrants to purchase up to approximately 0.9 million ordinary shares.
The warrants will be exercisable immediately upon the date of
issuance and have an exercise price of $2.25. The warrants will expire 5.5 years from
the date of issuance. The purchase price for one ordinary share and
a corresponding warrant will be $2.25. The gross proceeds to the Company from the
registered direct offering and concurrent private placement are
estimated to be approximately $2.1
million before deducting the placement agent's fees and
other estimated offering expenses. The registered direct offering
and concurrent private placement are expected to close on or
about May 26, 2020, subject to
the satisfaction of customary closing conditions.
Maxim Group LLC ("Maxim") is acting as sole placement agent in
connection with this offering.
The Company intends to use the net proceeds from this offering
for general corporate purposes.
The securities described above are being offered by the Company
pursuant to a shelf registration statement on Form F-3 filed with
the Securities and Exchange Commission (SEC) dated November 13, 2019, and declared effective on
November 26, 2019. A prospectus
supplement related to the offering will be, filed with the SEC and
available on the SEC's website at http://www.sec.gov. Copies of the
prospectus supplements relating to the offering may be obtained,
when available, by contacting: Maxim Group LLC, 405 Lexington
Avenue, 2nd Floor, New York,
NY 10174, by telephone: at (212) 895-3500.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state or
jurisdiction.
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.
Forward-Looking Statements
Certain statements made herein are "forward-looking statements"
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"anticipate", "believe", "expect", "estimate", "plan", "outlook",
and "project" and other similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. Such forward-looking statements include timing
of the proposed transaction; the business plans, objectives,
expectations and intentions of the parties once the transaction is
complete, and RCON's estimated and future results of operations,
business strategies, competitive position, industry environment and
potential growth opportunities. These forward-looking statements
reflect the current analysis of existing information and are
subject to various risks and uncertainties. As a result, caution
must be exercised in relying on forward-looking statements. Due to
known and unknown risks, our actual results may differ materially
from our expectations or projections. All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does
not assume a duty to update these forward-looking statements.
The following factors, among others, could cause actual results
to differ materially from those described in these forward-looking
statements: there is uncertainty about the spread of the COVID-19
virus and the impact it will have on RCON's operations, the demand
for the RCON's products and services, global supply chains and
economic activity in general. These and other risks and
uncertainties are detailed in the other public filings with the
Securities and Exchange Commission (the "SEC") by RCON.
Additional information concerning these and other factors that
may impact our expectations and projections will be found in our
periodic filings with the SEC, including our Annual Report on Form
20-F for the fiscal year ended June 30, 2019. RCON's SEC
filings are available publicly on the SEC's website
at www.sec.gov. RCON disclaims any obligation to update the
forward-looking statements, whether as a result of new information,
future events or otherwise.
IR contact:
Liu Jia
Recon Technology, Ltd.
+86 (10) 84945799
info@recon.cn
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SOURCE Recon Technology, Ltd.