Recon Technology Ltd Stock Price, News & Analysis

Recon Technology, Ltd. (NASDAQ: RCON) reported a 16.3% decline in total revenue to RMB45.6 million ($6.6 million) for the first six months of fiscal 2023, compared to RMB54.4 million in 2021. Net losses increased to RMB29.9 million ($4.3 million), down from net income of RMB111.4 million ($17.5 million) in the prior year. Despite a decrease in gross profit by 9.5% to RMB13.1 million ($1.9 million), the gross margin improved from 26.7% to 28.8%. The company aims to tap into new markets and technologies, particularly in the plastics recycling sector, leveraging recent funding of approximately $8 million for expansion and R&D efforts.

Recon Technology, Ltd. (NASDAQ: RCON) has successfully closed a registered direct offering, raising approximately $8 million through the sale of Class A ordinary shares and warrants. Net proceeds amount to around $7.1 million after expenses. These funds are earmarked for general corporate purposes, including research and development, marketing expansion, and potential acquisitions. Additionally, the exercise price for previously issued share purchase warrants has been reduced to $0.80. Maxim Group LLC acted as the sole placement agent for this offering.

On March 15, 2023, Recon Technology, Ltd. (NASDAQ: RCON) announced a securities purchase agreement with accredited investors to raise approximately $8 million through a registered direct offering. The agreement includes the sale of 10,002,500 Class A ordinary shares and warrants to purchase an equal number of shares. The pre-funded warrants will have an exercise price of $0.01 and the ordinary share warrants will be priced at $0.80, both exercisable immediately. The offering is set to close on or around March 17, 2023.