Under the terms of the Amended Merger Agreement, which was approved by the Company's shareholders at an extraordinary general meeting of shareholders held on October 15, 2012, each ordinary share of the Company issued and outstanding immediately prior to the effective time of the merger [...] has been cancelled in exchange for the right to receive US$0.165 per Share and each American depositary share (ADS), each representing 10 Shares, represents the right to receive US$1.65 per ADS (less US$0.05 per ADS cancellation fees), in each case, in cash without interest and net of any applicable withholding taxes. The Company also announced today that it requested that trading of its ADSs on the New York Stock Exchange be suspended.
Inflationary pressures in China continue to be high, which continues to adversely affect the Company's raw material input costs, which are increasing at a rate higher than the rate of increase in the Company's average biodiesel selling prices. As a result, the production and sale of biodiesel in the current business environment is not profitable for the Company. In order to minimize the financial burden on the Company as a whole, the Company will evaluate the appropriateness of continuing, commencing or resuming production of biodiesel at each of its biodiesel plants and will continue, commence or resume production only if the biodiesel plant is able to operate on a positive cash flow basis. The Company does not expect each of its biodiesel plants to be able to operate, achieve and maintain positive cash flows given the current trend of raw material input costs increasing at a higher rate than average biodiesel selling prices. While the Company continues with its efforts to control its raw material input costs, it is expected that the production and sales volume of biodiesel will continue to be low in the near term until positive results are achieved from the Company's efforts in controlling raw material input costs.
Meanwhile, the Company's recycled copper products business continued to contribute positively to the Company's overall financial performance and this trend is expected to continue. The Company believes that the recently completed acquisition of Xiangbei will also provide additional positive contribution. The Company continues to explore the possibility of acquiring more businesses in the recycled copper products industry that will complement its existing businesses and strengthen its overall recycled copper products business portfolio.
The Company's raw material input costs have risen significantly since the end of the first quarter 2011. As such, Gushan will continue its efforts to control its raw material input costs. As mentioned in the previous quarter's earnings results announcement, Gushan has been negotiating with the local government of Mianyang to be appointed as the exclusive collector and processor of used cooking oil in the regions under its jurisdiction. Such negotiations are still in progress and the Company will report on any material developments as and when they occur. Also, the Company continues to explore the possibility of developing an internal feedstock production capability within China. The process of searching for land in various regions of China that is suitable for cost-effective production of raw material feedstock such as castor bean and jatropha is currently ongoing. However, no assurance can be given by the Company that any of these efforts will be successful.
As a result of increasingly high raw material input costs, Gushan is currently evaluating the profitability of each of its biodiesel plant. In order to minimize the financial burden on the Company as a whole, Gushan will evaluate the appropriateness of continuing, commencing or resuming production of biodiesel at each of its biodiesel plants only if the biodiesel plant is able to operate on a positive cash flow basis. With the exception of Shanghai Gushan, the resumption of biodiesel production, which is still subject to the satisfactory resolution of a previously disclosed legal dispute with a construction contractor, Gushan expects to continue, commence or resume production of biodiesel at all of its plants as soon as possible so long as they are able to operate on a positive cash flow basis.