Tantech Holdings Ltd. Acquires 5% Minority Interest in Its PRC Operating Subsidiary
LISHUI, China, June24, 2016 /PRNewswire/ — Tantech Holdings Ltd. (NASDAQ: TANH) (“Tantech”or the “Company”), a leading manufacturer of bamboo-based charcoal products, announced today thatit, through its wholly-owned subsidiary in China, Lishui Tantech Energy Tech Co., Ltd. (“Lishui Tantech”), has entered into an equity purchase agreement (the “Agreement”) with the holders of the remaining 5% interest of Zhejiang Tantech Bamboo Technology Co., Ltd., (“Bamboo Tech”) , a China subsidiary of Lishui Tantech, to purchase the 5% interest of Bamboo Tech for 1,018,935 shares of the Company’s common stock (the “Shares”).
Pursuant to theAgreement executed onJune 24, 2016 by and between Lishui Tantech and the five individual shareholders, who eachowned 1% interest in Bamboo Tech, the Company shall issue and deliver203,787of the Shares to each of the five individual shareholders. All Shares to be issued pursuant to the Agreement are restricted shares.
As a result of the Agreement, Bamboo Tech became a wholly-owned subsidiary of Lishui Tantech, which is a 100% owned China subsidiary of the Company, allowing the Company to eliminate the “net income attributable to non-controlling interest” and to automatically increase “net income attributable to stockholders” by 5% on its Income Statement going forward. In 2015, the Company reported net income attributable to non-controlling interest of $487,928 and non-controlling interest in equity of $3,444,342.