Recon Technology To Acquire Qinghai Hua You Downhole For $6 Mln

(RTTNews) - Recon Technology Ltd. (RCON) Monday announced its plan to acquire PRC corporation and oilfield service provider Qinghai Hua You Downhole Technology Co., Ltd. in Qinghai province for $6 million. The deal includes $3.6 million worth of Recon ordinary shares and $2.4 million in cash, with QHHY achieving net profit growth of 15 percent for fiscal 2016 and fiscal 2017.

The shares will be issued at 120 percent of the weighted average closing price of Recon's ordinary shares. The lock up period will be 12-months.

Shenping Yin, chairman and CEO of Recon, said the acquisition marks is the first major acquisition since IPO in July 2009.