Recon Announces Agreement for $2.6M Registered Direct Offering of Ordinary Shares and Warrants

Recon Technology, Ltd.

announced today that it entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain institutional investors for the sale of 546,500 ordinary shares in a registered direct offering at the price of $4.81 per ordinary share. In addition, warrants to purchase 163,950 ordinary shares in the aggregate will be issued to the investors. The warrants will be exercisable immediately as of the date of issuance at an exercise price of $6.01 per ordinary shares and expire three years from the date of issuance. The exercise price of the warrants is subject to customary adjustment in the case of future issuances or deemed issuances of ordinary shares, stock splits, stock dividends, combinations of shares and similar recapitalization transactions. Gross proceeds of the offering, before deducting placement agent fees and other estimated offering expenses payable by the Company, are expected to be approximately $2.6 million. These securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus The net proceeds from this offering will be used for working