NEWA Stock Increases Over 14% Pre-Market: Why It Happened

By Amit Chowdhry ● Jul 12, 2021
  • The stock price of Newater Technology Inc (NASDAQ: NEWA) increased by over 14% pre-market. This is why it happened.

The stock price of Newater Technology Inc (NASDAQ: NEWA) – a developer, service provider, and manufacturer of membrane filtration products and related hardware and engineered systems that are used in the treatment, recycling, and discharge of wastewater – increased by over 14% pre-market. Investors are responding positively to Newater Technology announcing that at a general meeting held today, the company’s voting in favor of the proposal to authorize and approve (i) the previously announced merger agreement dated September 29, 2020, by and among Crouching Tiger Holding Limited (parent), Green Forest Holding Limited (merger sub) and Newater, pursuant to which the merger sub will merge with and into Newater, with Newater continuing as the surviving company and becoming a wholly-owned subsidiary of the parent, (ii) the plan of merger required to be filed with the Registrar of Corporate Affairs of the British Virgin Islands, and (iii) the consummation of the transactions contemplated by the merger agreement and the plan of merger, including the merger.

About 80.73% of the company’s total ordinary shares outstanding as of the close of business in the British Virgin Islands on the share record date of February 10, 2021, voted by proxy at the extraordinary general meeting. And each shareholder has one vote for each ordinary share. Of the ordinary shares voted at the meeting, about 63.84% voted in favor of the merger agreement, the plan of merger, and the transactions contemplated.

The completion of the merger is subject to the satisfaction or waiver of the closing conditions set forth in the merger agreement. And Newater will work with the other parties to the merger agreement towards satisfying the closing conditions and complete the merger in a timely manner. If and when completed, Newater will become a private company and its ordinary shares will no longer be listed or traded on any stock exchange.

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