Jiangsu Defarui New Material Technology Co., Ltd. announced that it has entered into an agreement with returning investor Shanghai Tianyang Hot Melt Adhesives Co., Ltd. for a private placement of common shares for gross proceeds of CNY 142.07 million on September 30, 2021. Out of the total proceeds, CNY 109.28 million will be added as registered capital, CNY 32.79 million will be added as capital reserve. After the completion of the transaction, the investor's stake will increase form 63.77% to 79.78%. and the registered capital of the company will increase from CNY 138 million to CNY 247.28 million. The transaction has been approved by the 18th session of the company’s 3rd directorate of the investor. The transaction is expected to close before October 31, 2021.