BEIJING, March 15,
2023 /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 March 15,
2023 to purchase approximately $8
million worth of its Class A ordinary shares (or pre-funded
warrants to purchase Class A ordinary shares in lieu thereof) in a
registered direct offering, and Class A ordinary shares warrants in
a concurrent private placement.
Under the terms of the securities purchase agreement, the
Company has agreed to sell 10,002,500 Class A ordinary shares (or
pre-funded warrants in lieu thereof) and warrants to purchase up to
10,002,500 Class A ordinary shares in a concurrent private
placement transaction. The pre-funded warrants have an exercise
price of $0.01 per share and will be
exercisable immediately upon the date of issuance until they are
exercised in full. The pre-funded warrants will be issued to
certain purchasers who have elected to purchase them in lieu of
Class A ordinary shares in this offering, as those purchasers would
otherwise have exceeded 9.99% (or such lesser percentage as
required by the investor) beneficial ownership of our Class A
ordinary shares immediately following the offering. The ordinary
share warrants will be exercisable immediately upon the date of
issuance and have an exercise price of $0.80. The ordinary share warrants will expire
five and a half years from the date of issuance. The purchase price
for one ordinary share (or pre-funded warrant in lieu thereof) and
a corresponding ordinary share warrant will be $0.80. The gross proceeds to the Company from
this registered direct offering are estimated to be $8 million before deducting the placement agent's
fees and other estimated offering
expenses.
In addition, ordinary share purchase warrants to purchase
an aggregate of up to 8,814,102 ordinary shares previously issued
by the Company to certain institutional investors on June 16, 2021 will have the exercise price
reduced to $0.80 in connection with
this offering if such investors participate in this offering. The
registered direct offering is expected to close on or about
March 17, 2023, subject to the
satisfaction of customary closing
conditions.
Maxim Group LLC ("Maxim") is acting as the sole placement
agent in connection with this offering.
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
December 2, 2022, and declared
effective on January 5, 2023. 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, 300 Park
Avenue, 16th Floor, New York,
NY 10022, 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 (NASDAQ: Recon) 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 The China National Petroleum Corporation
("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, Recon has taken
leading positions on several segmented markets of the oil and gas
filed service industry. Recon also has developed stable long-term
cooperation relationship with its major 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, whether
we will sign any additional contracts with the North China Branch, the final revenue from
providing services to the North
China Branch, actual results of our solutions in the field,
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; 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.
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SOURCE Recon Technology, Ltd