Newater Technology, Inc. Files Response to Lawsuit by Fulcan Capital Partners LLC

Rhea-AI Summary

Newater Technology, Inc. (NASDAQ: NEWA) announced the filing of a Notice of Application and Certificate of Urgency with the Eastern Caribbean Supreme Court in response to a lawsuit from Fulcan Capital Partners LLC. Fulcan obtained an ex parte order that restricts the Company and its board from proceeding with a planned going private merger. Newater argues the lawsuit is meritless and intends to defend its position vigorously. Furthermore, Fulcan submitted a renewed proposal to take the Company private, which Newater's Independent Committee finds lacking in legality and feasibility.

Positive

• The Company is actively defending against what it claims are meritless lawsuits, signaling robust legal engagement.
• Newater's Independent Committee is evaluating Fulcan's renewed proposal, showcasing ongoing strategic discussions.

Negative

• Fulcan's lawsuit could lead to delays in any proposed merger transaction, impacting the Company's future plans.
• The ongoing legal battle may create uncertainty for investors and affect stock performance.

YANTAI, China, March 31, 2021 /PRNewswire/ -- Newater Technology, Inc. (NASDAQ: NEWA) ("NEWA", or the "Company"), a developer, service provider and manufacturer of membrane filtration products and related hardware and engineered systems that are used in the treatment, recycling and discharge of wastewater, today announced that the Company and its independent committee of the board of the directors (the "Independent Committee") filed a Notice of Application and Certificate of Urgency with the Eastern Caribbean Supreme Court in the High Court of Justice, Virgin Islands (the "BVI Court") in response to a lawsuit filed by Fulcan Capital Partners LLC, a Nevada limited liability company ("Fulcan"). Fulcan obtained on March 17, 2021 an ex parte order from the BVI Court enjoining against the Company, the members of the board of the directors, and Tigerwind Group Limited, a special purpose vehicle wholly owned by Mr. Yuebiao Li, from taking any steps to proceed with the proposed "going private" merger transaction. The Company believes that the Fulcan lawsuit is wholly without merit and the ex parte order was obtained through falsehoods and misrepresentations. The Company intends to vigorously defend against Fulcan's claims in court and expects to prevail on merits.

Separately, on March 29, 2021, through its counsel, Fulcan submitted a purported renewed proposal to the Independent Committee, which is substantially the same as Fulcan's previous proposal to take the Company private. As the the Company believes the supposedly renewed proposal offers nothing new in substance and does not even attempt to address the infirmities in the Fulcan proposal identified by the Independent Committee and disclosed in the Company's public filings, the Independent Committee continues to believe that the proposal remains severely lacking in legality, credibility and feasibility.

ABOUT NEWATER TECHNOLOGY, INC.

Founded in 2012 and headquartered in Yantai, China, the Company, operating its business through its wholly owned subsidiary Yantai Jinzheng Eco-Technology Co. Ltd., specializes in the development, manufacture and sale of DTRO (Disk Tube Reverse Osmosis) and DTNF (Disk Tube Nano-Filtration) membranes for waste water treatment, recycling and discharge. NEWA provides integrated technical solutions in engineering support and installation, technical advice and water purification services, and other project-related solutions to turn wastewater into valuable clean water. More information about the Company can be found at www.dtNEWA.com.

The Company's core business includes:

• Reuse of high quality reclaimed water;
• High-salt and high-polluting wastewater treatment and near zero-liquid discharge;
• Highly efficient treatment of Landfill leachate; and
• Utilization of acid or alkali-containing wastewater as resources.

More information about the Company can be found at: www.dtNEWA.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may", "will", "intend", "should", "believe", "expect", "anticipate", "project", "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Specifically, the Company's statements regarding the transaction are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; the growth of the water filtration industry in China; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

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SOURCE Newater Technology, Inc.

FAQ

What lawsuit did Newater Technology, Inc. face?

Newater Technology, Inc. is facing a lawsuit from Fulcan Capital Partners LLC, which has resulted in an ex parte order halting a proposed merger.

What is the status of Fulcan's proposal to take Newater private?

Fulcan submitted a renewed proposal to take Newater private, but the Independent Committee found it lacking in legality and feasibility.

How is Newater Technology responding to the lawsuit?

Newater Technology plans to vigorously defend itself against the claims made by Fulcan in court.

What are the potential impacts of the Fulcan lawsuit on Newater Technology's stock?

The lawsuit could create uncertainty and delays in merger plans, which may negatively impact the stock performance of Newater Technology.

When was the lawsuit against Newater Technology filed?

The lawsuit was filed by Fulcan Capital Partners LLC, and a significant order was obtained on March 17, 2021.