Yuebiao Li, Chairman and Chief Executive Officer and Zhuo Zhang, Chief Financial Officer made a non-binding proposal to acquire additional 55.6% stake in Newater Technology, Inc (NasdaqCM:NEWA) for $18.6 million in a management buyout transaction on May 12, 2020. Under the terms of the transaction, Yuebiao Li and Zhuo Zhang, made proposal to acquire all the shares not currently owned by them at a price of $3.1 per share. Certain other shareholder and respective affiliates may join the offer alongside Yuebiao Li and Zhuo Zhang. As of September 12, 2019, Yuebiao Li held 2.9 million shares in Newater Technology, through Tigerwind Group Limited while Zhuo Zhang held 1.9 million shares in Newater Technology. According to the proposal letter, the acquisition is intended to be financed through debt and/or equity capital, where equity capital will be provided at least in part by the buyer group in the form of rollover equity in the Newater. Yuebiao Li, Chairman and Chief Executive Officer and Zhuo Zhang, Chief Financial Officer entered into a definitive Agreement to acquire additional 51.9% stake in Newater Technology for $20.5 million on September 29, 2020. Yuebiao Li and Zhuo Zhang will acquire shares at an offer per share of $3.65. Yuebiao Li held 2.9 million shares in Newater Technology, through Tigerwind Group Limited, Zhang Zhuo held 1.9 million and Sui Xiangqian through Forwater Holding Limited held 0.4 million shares of Newater Technology. Yuebiao Li and Zhuo Zhang intends to finance the merger through a combination of equity and cash in Newater Technology. Yuebiao Li and Zhuo Zhang will enter into subscription agreement, the sum of which be used to pay a portion of the aggregate merger consideration. Remainder of the aggregate merger consideration will be paid with Newater Technology cash on the balance sheet as of closing. As of December 2, 2020, Yancoal International (Holdings) Co., Limited will enter into subscription agreement to an amount of $17.8 million and Yuebiao Li and Zhuo Zhang would increase their subscription of the shares from a total of 0.2 million shares to 0.74 million shares in the aggregate amount of $2.7 million in each case, subject to certain customary conditions which would be used to fund the merger consideration. The independent committee of the Newater Technology board of directors has approved the updated arrangement for the payment of the merger consideration. Buyers has the right to seek alternative funding to replace the use of such Newater Technology’s cash prior to the closing and is obligated to use reasonable best efforts to obtain alternative financing from alternative sources for any shortfall in the event that Newater Technology does not have sufficient cash for use as merger consideration. Each of Yuebiao Li and Zhuo Zhang has entered into a limited guarantee in favor of the Company in respect of certain payment obligations of Parent under the merger agreement. Newater Technology will become a privately held company after completion of the transaction. Newater Technology, Yuebiao Li and Zhuo Zhang will pay $0.3 million as termination fee in case of termination of the agreement. Board of Directors of Newater will continue in their role after completion of the transaction. Newater's Board of Directors has formed a special committee of independent directors consisting of Zhicun Chen, Hengtong Li and Yan Shen, to consider this proposal. Zhicun Chen will serve as chairman of the independent committee. The transaction is subject to approval by the shareholders representing more than fifty percent of the outstanding shares of Newater Technology and all regulatory filings, permits, authorizations, consents and approvals that are required by applicable Laws of the PRC to be made or obtained in connection with the merger and the other transactions contemplated by this agreement prior to the closing. The Board of Newater Technology acting upon the unanimous recommendation of the independent committee approved the transaction. The transaction is expected to close during the second quarter of 2021. As of February 10, 2021, Newater Technology, Inc. will hold an extraordinary general meeting on March 19, 2021. On March 16, 2021, the Commercial Division of the Eastern Caribbean Supreme Court in the British Virgin Islands has approved the transaction. The shareholders of Newater approved the transaction on July 12, 2021. The independent committee will retain a financial advisor and legal counsel to assist it in its work. Duff & Phelps, LLC acted as financial advisor, Yue Li of MagStone Law, LLP and Ogier acted as legal advisors to the independent committee of Newater Technology in the transaction. James Chang of DLA Piper LLP acted as legal advisor for Yuebiao Li and Zhuo Zhang. Yuebiao Li, Chairman and Chief Executive Officer and Zhuo Zhang, Chief Financial Officer completed the acquisition of an acquire additional 51.9% stake in Newater Technology, Inc (NasdaqCM:NEWA) on July 12, 2021. Newater Technology, Inc has requested to suspend its shares trading on stock exchange.