The shares of Recon Technology, Ltd. (NASDAQ:RCON) soared high in the last trading session. However, there was no news or information available to drive the stock up except its 8-k filing submitted on February 4, 2015. As per the filings submitted to the Securities And Exchange Commission (SEC), the company informed the stakeholders about the proposals approved at its 2014 Annual General Meeting.
Why are analyst so optimistic about RCON?
A Slew Of Approvals
Among the approved proposals, Recon Technology, Ltd. (NASDAQ:RCON) said that its shareholders have voted to agree to the increase of its authorized share capital. The shareholders approved that the capital should be raised from $462,500, divided into 25,000,000 Ordinary Shares, valuing at $0.185 per share to $1,850,000. This capital will be divided into 75,000,000 Ordinary Shares at par value of $0.0185 per share.
Further, the company noted that the shareholders proposed to introduce a special resolution, which will be passed in order to remove a director prior to his term. The resolution will be passed when a case of negligence or any other reasonable cause is determined against such director. Also, it was decided to reduce the Quorum for a general shareholders meeting to one-third of the issued and outstanding shares from 50% at present.
More Proposals Approved
Recon Technology, Ltd. (NASDAQ:RCON) also notified about the approval and adoption of ‘Second Amended and Restated Memorandum of Association and Articles of Association.’ The shareholders approved the election of two Class II members of the board of directors, Mr. Jijun Hu, and Mr. Nelson N.S. Wong. The two members will take office for a term till the expiry of the year ending on June 30, 2017 or the time their successors are elected. The meeting also paved the way for the company’s 2015 Equity Incentive Plan and gave consent to the appointment of Friedman LLP as Recon’s accounting firm for the fiscal year ended on June 30, 2015.
The shares of Recon Technology closed the last trading session 12.44% higher at $2.35, indicating a $0.26 gain.