American Lorain and Shengrong Environmental Protection Holding exchange shares
American Lorain and the shareholders of Shengrong Environmental Protection Holding Company have entered into a definitive share exchange agreement pursuant to which ALN will acquire all of the outstanding capital stock of Shengrong. Shengrong is the indirect parent company of Hubei Shengrong Environmental Protection Energy-Saving and Technology, a high-tech company engaged in the development, manufacturing and sales of environmental protection equipment with a focus on recycling industrial solid waste and mining tailings in China. Under the terms of the agreement, at the closing of the acquisition, ALN will issue to the Sellers 114M shares of ALN common stock, representing approximately 75% of the issued and outstanding shares of ALN common stock following the consummation of the acquisition. The acquisition is subject to the satisfaction or waiver (if applicable) of customary closing conditions, including regulatory approvals. In addition, the acquisition is subject to approval by ALN shareholders. ALN is obligated to take all actions necessary so that, on, or promptly following, the closing of the Acquisition, ALN will spin-off its existing food business to a third party.