BEIJING, Aug. 6, 2018 /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 the Company, through its
affiliates Beijing BHD Petroleum Technology Co., Ltd. and Nanjing
Recon Technology Co., Ltd., has entered into a nonbinding framework
agreement (the "Framework Agreement") on August 3, 2018 with Future Gas Station
(Beijing) Technology, Ltd ("FGS"),
a leading service company focusing on providing new technical
applications and data operations to gas stations of oil companies.
After entry into binding purchase agreement, Recon will pay cash
and issue restricted shares to FGS and its shareholders in return
for the issuance of new shares from FGS and the transfer of shares
from existing FGS shareholders.
As previously disclosed in a press release on December 18, 2017, the Company invested
RMB 4.35 million (approximately
$0.7 million) in FGS to own 8% of FGS
through its affiliates Beijing BHD Petroleum Technology Co., Ltd.
and Nanjing Recon Technology Co., Ltd.
Pursuant to the Framework Agreement, Recon intends to increase
its affiliates' interest from 8% to 43% of FGS' equity. Upon entry
into a definitive purchase agreement, Recon expects to pay an
aggregate of RMB 10 million and
RMB 33.3 million worth of Recon's
restricted shares to FGS and its shareholders. This
transaction and determination of
share price are subject to entry into a definitive purchase
agreement, board approval of such agreement and satisfaction of
customary closing conditions.
Management Commentary
Mr. Shenping Yin, CEO of Recon
Technology, Ltd commented, "We are very pleased with the progress
that the FGS has shown since our initial investment in December 2017. We continue to view FGS as an
innovator transforming the customer experience at retail gas
stations in China. And foremost,
we are highly confident in FGS' founders and the professionalism of
the team. They have valuable insights into domestic gas station
markets and have great capability of solution implementation. While
we understand that FGS will continue to require significant capital
investment over the short term, we hope our next investment will
help FGS enter its next stage of expansion of its smart gas station
offerings."
Mr. Yang Song, the founder of
FGS, said, "We are glad that Recon has shown continued faith in our
operations and expansion. After one-year's exploration and
practices, we believe we have accumulated sufficient data to
further improve our operation and enable us to launch larger scale
deployment of our terminals and new retail solutions. It will
always be our philosophy to provide safe, convenient and various
choices for consumers. We hope to continue to improve the operating
efficiency, marketing efficiency, client retention, repurchase
rates, and employee satisfaction of gas stations through our mobile
applications, smart vending machines and other additions to the gas
station retail experience."
About Future Gas Station (Beijing) Technology, Ltd.
Established in January 2016, FGS
is a leading service company focusing on providing new technical
applications and data operations to gas stations of oil companies
such as PetroChina Co., Ltd. With its DT Refuel mobile application,
FGS provides solutions to gas stations to improve their operations
and their customers' experience. FGS aims to increase the overall
income of gas stations through integration of internet technique
and new retail E-Commerce platform, and to help transform gas
stations into comprehensive service providers.
About Recon Technology, Ltd.
Recon Technology, Ltd. (NASDAQ: RCON) 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
Forward-Looking Statements in this press release, which are
not historical facts, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Our actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements by the use of words such as "may," "could," "expect,"
"intend," "plan," "seek," "anticipate," "believe," "estimate,"
"predict," "potential," "continue," "likely," "will," "would" and
variations of these terms and similar expressions, or the negative
of these terms or similar expressions. Such forward-looking
statements are necessarily based upon estimates and assumptions
that, while considered reasonable by us and our management, are
inherently uncertain. Factors that may cause actual results to
differ materially from current expectations include, among others,
levels of spending in our industry as well as consumer confidence
generally; changes in the competitive environment in our industry
and the markets where we operate; our ability to access the capital
markets; the results of cooperation between parties to cooperation
agreements; our ability to benefit from such cooperation as a
shareholder of FGS; and other risks discussed in the Company's
filings with the U.S. Securities and Exchange Commission, including
our Annual Report on Form 20-F, which filings are available from
the SEC. We caution you not to place undue reliance on any
forward-looking statements, which are made as of the date of this
press release. We undertake no obligation to update publicly any of
these forward-looking statements to reflect actual results, new
information or future events, changes in assumptions or changes in
other factors affecting forward-looking statements, except to the
extent required by applicable laws. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements.
For more information, please contact:
In China:
Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd.
Phone: +86 (10) 8494-5799
Email: info@recon.cn
In the United
States:
Ms. Tina Xiao
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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SOURCE Recon Technology, Ltd.