Recon Announces Entry Into Agreement for $2.6 Million Registered Direct
Offering of Ordinary Shares and Warrants
BEIJING, Nov. 25, 2013
BEIJING, Nov. 25, 2013 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON),
an oilfield service company provider (the "Company") operating primarily in
the People's Republic of China, announced today that it entered into a
securities purchase agreement (the "Securities Purchase Agreement") with
certain institutional investors for the sale of 546,500 ordinary shares in a
registered direct offering at the price of $4.81 per ordinary share. In
addition, warrants to purchase 163,950 ordinary shares in the aggregate will
be issued to the investors.
The warrants will be exercisable immediately as of the date of issuance at an
exercise price of $6.01 per ordinary shares and expire three years from the
date of issuance. The exercise price of the warrants is subject to customary
adjustment in the case of future issuances or deemed issuances of ordinary
shares, stock splits, stock dividends, combinations of shares and similar
Gross proceeds of the offering, before deducting placement agent fees and
other estimated offering expenses payable by the Company, are expected to be
approximately $2.6 million.These securities are being offered through a
prospectus supplement pursuant to the Company's effective shelf registration
statement and base prospectus
The net proceeds from this offering will be used for working capital and other
general corporate purposes, including working capital and other general
corporate purposes, including acquisition of complementary assets or
businesses.In the Securities Purchase Agreement we have entered into with the
purchasers in this offering, we have agreed not to use the proceeds of this
offering to satisfy any existing debt (other than ordinary course trade
payables), to redeem any of our outstanding securities (other than the
warrants issued pursuant to the securities purchase agreement), or to settle
any outstanding litigation.
The completion of the offering will occur on or before November 29, 2013.FT
Global Capital, Inc. served as the placement agent for the offering.
A shelf registration statement relating to these securities has been filed
with and declared effective by the Securities and Exchange Commission. A
prospectus supplement related to the offering will be filed with the
Securities and Exchange Commission. This press release does not constitute an
offer to sell or the solicitation of an offer to buy, and these securities
cannot be sold in any state in which this offer, solicitation, or sale would
be unlawful prior to registration or qualification under the securities laws
of any such state. Any offer will be made only by means of a prospectus,
including a prospectus supplement, forming a part of the effective
Copies of the prospectus supplement and accompanying base prospectus relating
to this offering may be obtained at theSEC's website athttp://www.sec.govor
directly from the company by contactingthe Company at:
Recon Technology, Ltd.
Room 1902, Building C, King Long International Mansion
No. 9 Fulin Road
People's Republic of China
+86 (10) 8494-5799
Attn: Investor Relations
About Recon Technology, Ltd.
Recon Technology, Ltd. provides leading Chinese oil and gas companies with
automation services designed to increase efficiency and profitability in
relation to the exploration, extraction, production, refining and
transportation of field based petroleum products for 10 years. Recon
Technology is the first Chinese non-state-owned oil and gas service company to
go public in the U.S. For additional information please visit us at
Recon Technology, Ltd.
Tel: +86 (10) 84945799
Email: email@example.com; firstname.lastname@example.org
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking statements that
involve a number of risks and uncertainties. Such forward-looking statements
include statements about the public offering of securities described herein.
Actual events or results may differ materially from the Company's
expectations. Factors that could cause actual results to differ materially
from those stated or implied by the Company's forward-looking statements are
disclosed in its filings with the Securities and Exchange Commission. These
forward-looking statements represent the Company's judgment as of the time of
this release. The Company disclaims any intent or obligation to update these
forward-looking statements, other than as may be required under applicable
SOURCE Recon Technology, Ltd.
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