Benzinga | Jan 4, 2022 08:05AM EST

ReTo Eco-Solutions, Inc. Enters Into An Equity Acquisition Agreement With Hainan REIT Mingde Investment Holding Co.

BEIJING, Jan. 4, 2022 /PRNewswire/ -- ReTo Eco-Solutions, Inc. (NASDAQ:RETO) ("ReTo" or the "Company"), a provider of technology solutions for the improvement of ecological environments, today announced that, its subsidiary, ReTo Technology Development Co., Ltd., entered into an Equity Acquisition Agreement (the "Agreement") with Hainan REIT Mingde Investment Holding Co., Ltd. ("REIT Mingde") and its two individual shareholders (collectively, the "Sellers"), among others, on December 27, 2021, to acquire 100% of the equity interest in REIT Mingde, which owns 61.55% of the equity interest of Yile IoT Technology Co., Ltd. ("Yile IoT").

Yile IoT is a national high-tech enterprise in China that focuses on the research, development and application of Internet of Things (IoT) technologies. Yile IoT and its subsidiaries have developed advanced cloud based IoT solutions and products that primarily service automobile rental, ride sharing, and logistics sectors in China. Pursuant to the Agreement, ReTo will acquire 100% of the equity interest in REIT Mingde for a total consideration of RMB 10 million in cash or cash equivalents which will be paid to the Sellers within 30 days upon signing of the Agreement. The closing of the transaction is subject to satisfactory due diligence, board approval, completion of shareholder change registration with relevant State Administration of Market Regulation and other customary closing conditions. On December 28, 2021, the registration of ReTo Technology Development Co., Ltd. as the shareholder of REIT Mingde was completed.

Mr. Hengfang Li, Chairman and Chief Executive Officer of ReTo, commented: "We are excited about the acquisition of REIT Mingde as we believe this transaction will enable us to integrate Yile IoT's technologies into ReTo and accelerate the upgrade and growth of ReTo's business. With the support of IoT technologies, ReTo strives to become a technology driven provider of services for ecological and environmental protection industries, and increase value for our shareholders."