TD Holdings, Inc. Announces Letter of Intent to Acquire an Environmental Management Company Specialized in Tailings Treatment and Control Solutions
With access to 200 million tons of asbestos tailings aiming to refine silicon dioxide and metallic magnesium new materials.
SHENZHEN, China, April 12, 2023 /PRNewswire/ -- TD Holdings, Inc. (Nasdaq: GLG) (the "Company" or "TD Holdings"), a commodities trading service provider in China, today announced that it has entered into a non-binding letter of intent (the "LOI") to acquire the equity interest of Xinjiang Dede Xinyuan Environmental Protection Technology Co., Ltd. ("XDX"), an environmental management company specialized in tailings treatment and control solutions, with access to 200 million tons of asbestos tailings, primarily composed of silicon dioxide metallic magnesium elements. Through this proposed acquisition, the Company aims to expand its operations to include the refining of silicon dioxide and metallic magnesium new materials and provide value-added services to its clients within the non-ferrous metals sector through XDX's expertise in tailings treatment and control solutions.
Pursuant to the terms of the LOI, the Company intends to acquire more than 51% of the equity interest of XDX. The specific purchase price shall be determined upon completion of the due diligence and are subject to the final results of the financial audit and assets valuation, and shall be set out in the definitive agreement to be entered into by the relevant parties. The proposed acquisition will be made through a private placement of shares by TD Holdings to XDX with a lock-up period and shall be lifted in batches according to XDX's performance commitment under the definitive agreement. Assuming the satisfactory completion of its due diligence and negotiation of the definitive agreement, the Company expects to close the transaction by March 31, 2024. As the transaction proceeds, the Company will publicly disclose required information either through press releases or SEC filings, as appropriate.
Ms. Renmei Ouyang, the CEO of the Company, commented, "We are thrilled to announce the LOI for the proposed acquisition of XDX. As a prominent B2B e-commerce commodities trading service provider and supply chain service provider in China, the Company is expected to further strengthen its advantages in the mineral trading business and the integration of the industry resources upon the completion of the proposed acquisition. The comprehensive recycling of asbestos tailings is not only instrumental for reducing waste of resources to enhance resource recycling, but also beneficial for preventing environmental pollution and promoting social harmony. It is of great significance for the transformation, optimization and upgrading of the economic structure of resource-based cities by pursuing the development of a recycling economy, that is, a virtuous circle of 'reduction, high efficiency, reuse and recycling'."
The completion of the transactions will depend on the outcome of due diligence by the relevant parties, the negotiation and execution of the definitive agreement, approval by the Company's board of directors, and the satisfaction of other customary closing conditions. It is important to note that there is no guarantee that a definitive agreement will be reached or that the proposed transaction will be completed. Readers are advised that the portions of the LOI describing the proposed transaction, including the consideration to be issued, are non-binding.
About Xinjiang Dede Xinyuan Environmental Protection Technology Co., Ltd.
Xinjiang Dede Xinyuan Environmental Protection Technology Co., Ltd. focuses on the development of tailings treatment and control solutions. Taking the example of asbestos tailings treatment, XDX establishes a hazardous waste comprehensive utilization environmental protection technology processing new material base industrial park, creating a linkage between the government, industry, academia, and research institutions. XDX's goal is to guide the comprehensive utilization of tailings in China and worldwide, thereby stimulating industrialization and promoting the development of the entire economic system.
About TD Holdings, Inc.
TD Holdings, Inc. is a service provider currently engaging in the commodities trading business and supply chain service business in China. Its commodities trading business primarily involves purchasing non-ferrous metal products from upstream metal and mineral suppliers and then selling to downstream customers. Its supply chain service business primarily has served as a one-stop commodity supply chain service and digital intelligence supply chain platform integrating upstream and downstream enterprises, warehouses, logistics, information, and futures trading. For more information, please visit http://ir.tdglg.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of TD Holdings, Inc. and its subsidiaries. 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, involving 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, which may prove to be incorrect. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: there is uncertainty about the spread of the COVID-19 virus and the impact it will have on the Company's operations; the demand for the Company's products and services, global supply chains and economic activity in general; the occurrence of any event, change or other circumstances; and other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission by TD Holdings, Inc. 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:
Ascent Investor Relations LLC
Ms. Tina Xiao
Email: tina.xiao@ascent-ir.com
Tel: +1 917 609 0333
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