Recon Technology To Acquire Beijing Originwater Purification Engineering - Quick Facts

(RTTNews) - Recon Technology, Ltd. (RCON), a Chinese non-state-owned oil and gas field service company, announced Tuesday that it has entered into a memorandum of understanding with Beijing Originwater Purification Engineering Technology Co. Ltd, a PRC private company focusing on water purification industry in China.

Pursuant to the MOU, Recon will explore the purchase of up to 100% of the equity interest or assets of Originwater Purification Engineering from the current shareholders at a price to be agreed upon by the Parties.

The purchase price will be based on the assessed value of Originwater Purification Engineering as determined by an independent third-party evaluation firm and will be paid in cash and the Company's restricted ordinary shares.

The terms and conditions of a definitive agreement are currently being negotiated between the two parties. Further details will be disclosed upon completion of the definitive agreement.

As the Chief Technology Officer and director Guangqiang Chen is a significant shareholder of Originwater, the Board of Directors of the Company has established a special committee consisting solely of independent, disinterested directors to evaluate the MOU and transaction.