On the last check Tuesday, China Natural Resources Inc. (CHNR) gained 39.71% at $1.90 in after-hours trading. CHNR stock declined -6.21% to close at $1.36, trading in a range of $1.3301 to $1.4367. A total of 3.19 million CHNR shares were traded on the day, which was above its 100-day daily average of 0.23 million shares. In the last five days, CHNR shares have lost -8.72%, while they have lost -11.69% in the last month. An acquisition agreement led to a rise in CHNR stock.
What was the contract signed by CHNR?
The focus of China Natural Resources is currently acquisition and exploitation of mining resources in Inner Mongolia. CHNR is also actively exploring business opportunities outside of natural resources, such as healthcare and other non-resource sectors. CHNR is engaged in exploring for lead, silver, and other nonferrous metals.
It was announced yesterday that China Natural Resources had acquired Precise Space-Time Technology Limited (“Precise Space-Time Technology”).
- As estimated by an independent valuation firm, the acquisition price was approximately 104.1 million Chinese Yuan (US$16.1 million), which represents a 20% discount from Precise Space-Time Technology’s value.
- A total of 120 million shares of Feishang Anthracite Resources Limited held by CHNR, 3 million restricted shares of CHNR, and cash will be the consideration.
- By way of its wholly owned subsidiaries, Precision Space-Time Technology owns a 51% stake in Shanghai Onway Environmental Co., Ltd. (“Shanghai Onway”).
- As a principally engaged in providing engineering, procurement and construction services for wastewater treatment in China, Shanghai Onway primarily provides equipment for rural wastewater treatment.
- The mining and healthcare sector businesses of Precise Space-Time Technology fit well with CHNR’s strategic objectives.
- CHNR is reviewing possible ways to reduce environmental impacts during mining operations and to preserve local water quality standards by leveraging Shanghai Onway.
- Additionally, CHNR discovered a significant difference between the rural and urban sewage treatment rates in China.
- Through the construction of sewage treatment facilities in the villages where CHNR operates, it can help close that gap.
- During the past few years, the rural sewage treatment industry has experienced rapid growth.
- CHNR can find opportunities outside of its current operations, in addition to leveraging valuable synergies.
Is the recent acquisition a positive development for CHNR Stock?
As a result of the current move, CHNR shareholders will be able to reap the benefits of a profitable business. In addition to entering an attractive environmental protection business, CHNR’s acquisition of Precise Space-Time Technology will further strengthen its long-term growth prospects. In addition to the experience, customer relationships, and valuable market insight that Precise Space-Time Technology will offer, CHNR will directly benefit from their expertise.
