XI'AN, China, May 25, 2016 (GLOBE NEWSWIRE) -- China Recycling Energy Corporation. (CREG) ("CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced that its Board of Directors unanimously approved a reverse stock split of its common stock at a ratio of 1-for-10, with anticipated trading on the split adjusted basis on NASDAQ commencing at the open of the stock market on May 26, 2016.
The purpose of the reverse split is to raise the per share trading price of the Company's common stock to regain compliance with the minimum $1.00 continued listing requirement for the listing of its common stock on The NASDAQ Capital Market. In order to maintain the Company's listing on NASDAQ, the Company's common stock must have a closing bid price of $1.00 or more for a minimum of 10 consecutive trading days by June 13, 2016.
As a result of the reverse stock split, the number of the Company's authorized shares of common stock will be decreased from 200,000,000 shares to 20,000,000 shares and its outstanding common stock will be decreased from approximately 83 million to 8.3 million shares. Upon the effective date of the reverse stock split, every ten (10) shares of the Company's common stock outstanding automatically combine into one (1) new share of common stock. The Company will round up to the next full share of the Company's shares of common stock any fractional shares that result from the reverse stock split and no fractional shares will be issued in connection with the reverse stock split and no cash or other consideration will be paid in connection with any fractional shares that would otherwise have resulted from the reverse stock split.
There can be no assurance that following the reverse split, the Company's common stock will remain above the $1.00 per share minimum for the requisite period as of June 13, 2016 to regain listing compliance.
About China Recycling Energy Corp.
China Recycling Energy Corp. (CREG) ("CREG" or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1 percent of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China. For more information about CREG, please visit http://creg-cn.investorroom.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Recycling Energy Corp. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Mr. Jackie Shi, Chief Financial Officer
China Recycling Energy Corp.
Tel: +86- 139 9287 0723
Source:China Recycling Energy Corporation