New East New Materials (SHA:603110) plans to establish a joint venture that will manufacture nanomaterials and battery materials, according to a Shanghai bourse disclosure on Thursday.
The company's shares dropped 10% at the close of the trade.
The joint venture, which will be established with Suzhou First Element Nanotechnology and two other investors, will have a registered capital of 100 million yuan.
The ink and adhesive manufacturer will own 30% of the venture, while First Element will hold 40%. Individual investors Zhou Qihua and Chen Yun will hold 15% each.
Prior to the joint venture, the Chinese chemical products manufacturer will invest 18 million yuan in First Element through a convertible bond. The proceeds will be used to expand the new materials maker's carbon nanotube paper production, as well as for the establishment of the venture.
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