Wuxi Hongpeng Aviation Power Co., Ltd. announced that it expects to receive CNY 29.812734 million in funding from Jiangsu Shentong Valve Co., Ltd.
November 01, 2020
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Wuxi Hongpeng Aviation Power Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 29,812,734 on November 2, 2020. The company has signed capital increase agreement with the investor. The transaction will involve participation from new investor, Jiangsu Shentong Valve Co., Ltd. (SZSE:002438) for 19.90% stake in the company. Out of the total amount received, the company will receive CNY 4,968,789 as the target company’s registered capital, and the rest will be included in the target company’s capital reserve. Post-closing of the transaction, the registered capital of the company will increase from CNY 20,000,000 to CNY 24,968,789. The transaction does not need approval from its board of directors and its shareholders, and is within the scope of the chairman's approval authority.
Jiangsu Shentong Valve Co., Ltd. is a China-based company principally engaged in the research, development, manufacture and sales of industrial valves. The Company provides BFG all dry dust removal system, Converter gas dust and recovery system, coke oven flue gas dust removal system, special valves of gas pipeline network system, which are used for metallurgy industry, coal chemical industry, ultra (ultra) supercritical thermal power industry, LNG cryogenic valves, and petroleum and petrochemical special valves.