As of the last check in premarket session, Newater Technology Inc. (NEWA) was down -6.47% to trade at $3.90. The stock of Newater closed at $4.17 on Monday after rising 10.92% during the day. The volume of NEWA stock traded on the day was 14.46 million, significantly higher than the average daily volume of 85.15K over the past three months. NEWA stock fluctuated between $3.7001 and $5.39 during the trading session. NEWA stock rose in the last session after its shareholders approved the merger agreement but has been falling in the premarket session today.
What company is merging with NEWA?
Yantai, China, is home to Newater, which was founded in 2012. NEWA’s wholly-owned subsidiary Yantai Jinzheng Eco-Technology Co Ltd operates its business. NEWA specializes in using disk tube reverse osmosis (DTRO) and disk tube nanofiltration (DTNF) membranes to treat, recycle, and dispose of waste water. Water purification, engineering support, technical advice, and other project-related services are all included in the comprehensive technical solutions that NEWA offers to turn wastewater into valuable clean water.
Newater announced that its shareholders voted in favor of approving the previously announced merger agreement dated September 29, 2020 at an extraordinary general meeting held yesterday.
- Crouching Tiger Holding Limited, a Cayman Islands company, and Green Forest Holding Limited, a British Virgin Islands subsidiary, were parties to the Merger Agreement with NEWA.
- According to the merger agreement, Green Forest will merge with and into NEWA, with Newater continuing as the surviving company and becoming Crouching Tiger’s wholly owned subsidiary.
- In addition, NEWA shareholders approved the merger plan to be submitted to the British Virgin Islands Registrar of Corporate Affairs.
- A majority of NEWA’s shareholders also voted to approve the Merger Agreement and Plan of Merger, with the Merger as one of the transactions.
- NEWA voted by proxy at its extraordinary general meeting 80.73% of its outstanding ordinary shares as of the British Virgin Islands close of business on February 10, 2021.
- For each NEWA ordinary share, each shareholder has one vote.
- A majority of shareholders voted for the merger agreement, the plan of merger, the transactions contemplated thereby, including the merger, representing approximately 63.84% of NEWA ordinary shares.
What will happen when NEWA combines?
Under the Merger Agreement, a number of closing conditions must be satisfied, or waived, in order to complete the NEWA’s Merger. In order to satisfy the closing conditions, Newater (NEWA) will work with the other parties to the Merger Agreement. The ordinary shares of NEWA would cease to be listed or traded on any stock exchange once it becomes a private company.
