China Recycling Energy Corp. (NASDAQ:CREG) a leading industrial waste-to-energy solution provider in reported that on September 30, 2018, Shanghai TCH Energy Technology Co., Ltd a wholly-owned subsidiary of the Company, entered into an Equity Purchase Contract (the “Contract”) with Mr. Jihua Wang to acquire 20% of the equity interests of Xi’an Xinhuan Energy Co., Ltd. (“Xinhuan”).
Pursuant to the Contract, Shanghai TCH is acquiring 20% of the equity interests of Xinhuan for an aggregate purchase price of RMB 320M (about $46.72M) ( the “Purchase Price”), which will be paid as follows: (i) in cash in the amount of RMB 60M (about $8.76M); (ii) in the form of 2.6M shares of the Company’s ordinary stock using a value of $1.90 per share; and (iii) in the form of 17,376,950 shares of the Company’s preferred stock using a value of $1.90 per share, which such class of stock has not yet been authorized or designated. The preferred shares will have no voting rights but will have preferential dividend rights to take part in and receive a 15% premium on a per share basis for any dividends reported and paid by the Company on its ordinary stock. The holder of the preferred shares (the “Holder”) has the right to convert the preferred shares into shares of the Company’s ordinary stock on a 1:1 basis after the 6 month anniversary of the issuance of the preferred shares, but the Holder may only exercise the conversion rights to the extent that, after giving effect to the issuance of ordinary stock after such conversion, the Holder would beneficially own less than 20% of the Company’s issued and outstanding ordinary stock.
The payment of the Purchase Prices in the form of the 2.6M shares of ordinary stock and 17,376,950 shares of preferred shares of the Company (the “Share Payment”) is contingent on the Company receiving shareholder authorization at a special shareholders meeting for the Share Payment under the Contract, and to create the new class of preferred shares and increase the number of authorized shares of ordinary stock.
Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward. Analysts use common formulas and ratios to accomplish this. The stock appeared -83.07% downward to its 52-week high and 44.55% above its 52-week low. The stock price surged with Upswing change of 27.38% when it was compared to 20-day moving average. China Recycling Energy Corporation (CREG) has shown a upward trend during time of recent session. This trend is based on movement of 50 SMA and stock price is rising off the 50 SMA.