Xinjiang Xuefeng Sci-Tech (Group) Co.Ltd(603227) it is announced that the listed company plans to purchase 100.00% equity of Populus euphratica by issuing shares and paying cash. The share price of this issuance of shares to purchase assets is 5.54 yuan / share. Meanwhile, the listed company plans to raise supporting funds by non-public offering of shares to no more than 35 specific investors, which is expected to be no more than RMB 90 million. At present, the audit and evaluation related to this transaction have not been completed, and the estimated value and transaction price of the underlying assets have not been determined, which is expected to constitute a major asset restructuring.
Populus euphratica is mainly engaged in the production and sales of chemical raw materials and chemical fertilizers such as melamine, ammonium nitrate and nitro compound fertilizer. It is a leading enterprise in the production of melamine and compound fertilizer in Northwest China. Ammonium nitrate, one of the main products of Populus euphratica, is an important raw material of listed companies. After the completion of this transaction, the listed company will expand from a single civil explosion business to a dual main business of “civil explosion + chemical industry” to create a new profit growth point. The trading of the company’s shares will resume from the opening of the market on January 18, 2022.
