Epoxy Base Electronic Material Corporation Limited (SHSE:603002) agreed to acquire Wuxi Grace Electron Technology Co., Ltd. from Grace Electron Corp. (Guangzhou) and NEWFAME INVESTMENT LIMITED for CNY 1.3 billion on March 17, 2020. Under the terms, Epoxy will issue a total of 263.2 million of its own shares to acquire 398 million shares in the target. As on September 17, 2020, as per equity distribution plan, the issue price of this transaction was adjusted to CNY 3.85 per share and the number of shares to be issues as consideration will be approximately 267.3 million. Grace Electron will sell 75% stake equivalent to approximately 200 million shares of approximately CNY 770 million value and NEWFAME INVESTMENT will sell 25% stake equivalent to 66.8 million shares of approximately CNY 260 million value. In a related transaction, Epoxy will raise funds through a private placement of its shares and are intended to be used to supplement the liquidity of the target company and to pay the related expenses of the transaction. The raised funds will not exceed CNY 120 million. Wuxi Grace Electron Technology Co., Ltd has total assets of CNY 752.8 million, revenue of CNY 740.6 million, operating profit of CNY 98 million, net profit of CNY 85.5 million and net assets of CNY 476.3 million. The transaction needs to be approved by shareholders of Epoxy, the CSRC and the internal decision-making body of the sellers. The transaction has been approved by the board of Wuxi Grace and Epoxy. After the subject assets of this transaction have been audited and evaluated, Epoxy will convene a board meeting again to review the formal plan for this reorganization. On June 17, 2020, the transaction was approved in the Extraordinary Shareholders General Meeting of Epoxy. On November 7, 2020, Epoxy Base received approval of the China Securities Regulatory Commission for issuing shares to purchase assets and raising supporting funds. Soochow Securities Co., Ltd. acted as financial advisor for Epoxy. Cheng Yiqun and Gao Maoying of Commerce & Finance Law Offices acted as legal advisor and Han Yanguang and Mai Jianqing of Baker Tilly China Certified Public Accountants as accountant to Epoxy Base Electronic Material Corporation Limited. Epoxy Base Electronic Material Corporation Limited (SHSE:603002) completed the acquisition of Wuxi Grace Electron Technology Co., Ltd. from Grace Electron Corp. (Guangzhou) and NEWFAME INVESTMENT LIMITED on November 25, 2020. Wuxi Grace Electron Technology Co., Ltd. became Epoxy Base Electronic's wholly-owned subsidiary. Wuxi Grace Electron Technology Co., Ltd. has completed the industrial and commercial change registration procedures for the transfer of assets of this transaction, and obtained the Wuxi National High-tech Industrial Development Zone (Xinwu District, Wuxi City) "Business License" issued by the Market Supervision Administration.