BEIJING, July 29, 2015 /PRNewswire/ -- Recon
Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a
leading independent oilfield services provider operating primarily
in China, today announced that it,
along with its wholly-owned PRC subsidiary, Recon Hengda Technology (Beijing) Co., Ltd., has entered into a
memorandum of understanding (the "MOU") with Qinghai Huayou
Downhole Technologies Co., Ltd. ( "QHHY"), a PRC corporation and
oilfield service provider in Qinghai province.
Pursuant to the MOU entered into by and between the Company and
QHHY on July
29, 2015, the Company has agreed to acquire a 100%
stake in QHHY with a combination of cash and the Company stock (the
"Transaction"). 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.
Mr. Shenping Yin, Chairman and
Chief Executive Officer of Recon, commented, "We are excited about
the unique opportunity that QHHY represents. QHHY's expertise in
downhole technology will further strengthen and complement our
existing product and service offerings. In addition, QHHY has
demonstrated strong growth and profitability since its inception.
We anticipate that QHHY's long-term contract oriented business
model will provide stable cash flow which will smooth out the
seasonality inherent in our existing business. We view QHHY as a
good fit to our long term vision as we actively seek accretive
M&A opportunities to accelerate our growth and earning
power."
About Qinghai Huayou Downhole Technologies Co., Ltd.
Established in September 2011,
Qinghai Huayou Downhole Technologies Co., Ltd. ("QHHY") is an
oilfield service company providing a wide range of downhole
technology support and services for oil and gas exploration
companies primarily in Qinghai
province. QHHY has more than100 employees and is a qualified
oilfield service provider for PetroChina.
About Recon Technology, Ltd.
Recon Technology, Ltd. is China's first independent
oil and gas field service company listed
on NASDAQ. Closely working with leading global partners,
Recon has achieved rapid growth by
supplying China's largest oil and gas exploration
companies, including Sinopec and China National Petroleum
Corporation, with advanced automated technologies, efficient
gathering and transportation equipment and reservoir stimulation
measures. The solutions Recon provides are aimed at increasing gas
and petroleum extraction levels, reducing impurities, improving
safety and lowering production costs. For additional information,
please visit: www.recon.cn.
Cautionary Statements
Statements made in this release with respect to Recon's
current plans, estimates, strategies and beliefs and other
statements that are not historical facts are forward-looking
statements about the future performance of Recon. Forward-looking
statements include, but are not limited to, those statements using
words such as "believe," "expect," "plans," "strategy,"
"prospects," "forecast," "estimate," "project," "anticipate,"
"aim," "intend," "seek," "may," "might," "could" or "should," and
words of similar meaning in connection with a discussion of future
operations, financial performance, events or conditions. From time
to time, oral or written forward-looking statements may also be
included in other materials released to the public. These
statements are based on management's assumptions, judgments and
beliefs in light of the information currently available to it.
Recon cautions investors that a number of important risks and
uncertainties could cause actual results to differ materially from
those discussed in the forward-looking statements, including but
not limited to, the timing of the development of future products,
projections of revenue, earnings, capital structure and other
financial items, product and service demand and acceptance, changes
in technology, economic conditions, the impact of competition and
pricing, government regulation, and other risks contained in
reports filed by the company with the Securities and Exchange
Commission. Therefore investors should not place undue reliance on
such forward-looking statements. Actual results may differ
significantly from those set forth in the forward-looking
statements.
All such forward-looking statements, whether written or oral,
and whether made by or on behalf of the company, are expressly
qualified by the cautionary statements and any other cautionary
statements which may accompany the forward-looking statements. In
addition, the company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date hereof.
Contact:
Recon Technology, Ltd.
Tel: +86-10-8494-5799
Email: info@recon.cn
Web: http://www.recon.cn
Weitian Investor Relations
Tina Xiao
Tel: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
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SOURCE Recon Technology, Ltd.