April 6, 2021
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, 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.