Recon Technology ends planned $3.60 million QHHY acquisition after audit shows shortfall
Recon Technology's board decided on July 23, 2016 not to proceed with its plan to acquire Qinghai Huayou Downhole Technology (QHHY), and terminated the related share purchase and control agreements. The company said QHHY had not met its fiscal 2015 financial projections, was not expected to meet its fiscal 2016 projections, and the parties could not agree on a renegotiated price due to a lower valuation. The company says it faces no early termination penalties.
Key points
- The original deal was $3.60 million in company ordinary shares plus up to $4.8 million in cash, subject to QHHY reaching certain operating goals.
- The board resolved on July 23, 2016 to terminate the agreements after an audit of QHHY's 2014 and 2015 fiscal years and a review of the first two quarters of fiscal 2016.
- QHHY was founded by Chief Technology Officer and director Chen Guangqiang, who sold his ownership interest on December 15, 2014; the filing says current QHHY shareholders are not affiliated with the company.
The filing
Written by AI on Nov 9, 2026, 10:08 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on July 28, 2016.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.