Ossen Innovation Enters into Amendment No. 1 to Merger Agreement for Going Private Transaction

Rhea-AI Summary

Ossen Innovation Co., Ltd. (Nasdaq: OSN) has announced an extension of the Termination Date for its merger agreement, originally set for June 17, 2021, to September 17, 2021. This decision follows an Amendment No. 1 to the Agreement and Plan of Merger, made unanimously by the Board's independent committee. The merger involves Ossen, New Ossen Group Limited, and New Ossen Innovation Limited. The company's products are widely used in infrastructure projects, and it operates two manufacturing plants in China.

Positive

• None.

Negative

• The extension of the merger's Termination Date may signal delays in the transaction process, raising concerns about the merger's completion.
• The uncertainty surrounding the merger could impact investor confidence and stock price volatility.

SHANGHAI, June 16, 2021 /PRNewswire/ -- Ossen Innovation Co., Ltd. (the "Company") (Nasdaq: OSN), a China-based manufacturer of an array of plain surface, rare earth and zinc coated pre-stressed steel materials, today announced that it has entered into an Amendment to the Agreement and Plan of Merger dated June 16, 2021 ("Amendment No. 1") to amend its previously announced Agreement and Plan of Merger, dated as of December 17, 2020 (the "Merger Agreement"), by and among the Company, New Ossen Group Limited ("Parent") and New Ossen Innovation Limited ("Merger Sub").

The Merger Agreement provides that either the Company or Parent may terminate the Merger Agreement if the effective time of the merger has not occurred on or before June 17, 2021 (the "Termination Date"). Pursuant to Amendment No. 1, the parties have agreed to extend the Termination Date by three (3) months to September 17, 2021.

The Company's board of directors (the "Board"), acting upon the unanimous recommendation of a committee of independent and disinterested directors established by the Board, approved the Amendment No. 1 to extend the Termination Date.

About Ossen Innovation Co., Ltd.

Ossen Innovation Co., Ltd. manufactures and sells a wide variety of plain surface pre-stressed steel materials and rare earth coated and zinc coated pre-stressed steel materials. The Company's products are mainly used in the construction of bridges, as well as in highways and other infrastructure projects. Ossen has two manufacturing facilities located in Ma'anshan, Anhui Province, and Jiujiang, Jiangxi Province.

Safe Harbor Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's annual report on Form 20-F. All information provided in this press release is as of the date hereof. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

For more information, please contact:

Wei Hua, Chief Executive Officer
Email: int.tr@ossengroup.com
Phone: +86-21-6888-8886
Web: www.osseninnovation.com

Investor Relations
GIC IR
Phone: +1-347-393-4230
Email: info@goldenir.com

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SOURCE Ossen Innovation Co., Ltd.

FAQ

What is the latest update on the Ossen Innovation merger agreement for OSN?

Ossen Innovation has extended the merger agreement's Termination Date from June 17, 2021, to September 17, 2021.

Why did Ossen Innovation extend the Termination Date of its merger agreement?

The extension was approved by the Board to allow additional time for the completion of the merger process.

What are the potential impacts of the merger extension on Ossen Innovation's stock?

The extension may lead to increased uncertainty, which could affect investor confidence and potentially lead to stock price volatility.

Who is involved in the merger agreement of Ossen Innovation?

The merger agreement involves Ossen Innovation Co., Ltd., New Ossen Group Limited, and New Ossen Innovation Limited.