BEIJING,
June 26, 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 June
26, 2020 to purchase $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 1.68 million ordinary shares. In a
concurrent private placement, the Company has agreed to issue
unregistered warrants to purchase up to 1.68 million ordinary
shares. The warrants will be exercisable immediately upon the date
of issuance and have an exercise price of $1.25. 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 $1.25. In addition, the initial exercise price
for previously issued unregistered warrants to purchase 911,112
ordinary shares has decreased from $2.25 per share to $1.25 per share. The gross proceeds to the
Company from this registered direct offering and concurrent private
placement are estimated to be $2.1
million before deducting the placement agent's fees and
other estimated offering expenses, assuming there is no exercise of
any of the warrants. The registered direct offering and concurrent
private placement are expected to close on or about June 30, 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.