BAODING, China, April 30, 2020 /PRNewswire/ -- IT Tech Packaging,
Inc. (NYSE MKT: ITP) ("IT Tech Packaging" or "the Company"), a
leading manufacturer and distributor of diversified paper products
in North China, announced today it
has entered into a securities purchase agreement with certain
institutional investors to purchase approximately $2.6 million worth of its common stock in a
registered direct offering and warrants to purchase shares of
common stock in a concurrent private placement.
Under the terms of the securities purchase agreement, the
Company has agreed to sell 4.4 million shares of the Company's
common stock and issue unregistered warrants to purchase up to an
additional 4.4 million shares of the Company's common stock in a
concurrent private placement transaction. The warrants will be
exercisable commencing six months after the date of issuance at an
exercise price of $0.7425 and expire
5.5 years from the date of issuance. The purchase price for one
share of common stock and a corresponding warrant is $0.58. The gross proceeds to the Company from the
registered direct offering and concurrent private placement are
estimated to be approximately $2.6
million before deducting the placement agent's fees and
other estimated offering expenses. The registered direct offering
and concurrent private placement are expected to close on or about
May 4, 2020, subject to the
satisfaction of customary closing conditions.
Maxim Group LLC ("Maxim") is acting as sole placement agent in
connection with this offering.
The Company intends to use the net proceeds from this offering
for general corporate purposes.
The common stock is being offered by the Company pursuant to a
shelf registration statement on Form S-3 filed with the Securities
and Exchange Commission (SEC) dated February
22, 2018, as amended on June 11,
2018 and declared effective on June
19, 2018. A prospectus supplement related to the offering
will be filed with the SEC and available on the SEC's website at
http://www.sec.gov. Copies of the prospectus supplement relating to
the offering may be obtained, when available, by contacting: Maxim
Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, by telephone: at (212)
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of such state or
About IT Tech Packaging, Inc.
Founded in 1996, IT Tech Packaging, Inc. is a leading
manufacturer and distributor of diversified paper products in
North China. Using recycled paper
as its primary raw material (with the exception of its tissue paper
products), ITP produces and distributes three categories of paper
products: corrugating medium paper, offset printing paper and
tissue paper products. With production based in Baoding and Xingtai
in North China's Hebei Province, ITP is located strategically
close to the Beijing and
Tianjin region, home to a growing
base of industrial and manufacturing activities and one of the
largest markets for paper products consumption in the country. ITP
has been listed on the NYSE American since December 2009.
Certain statements made herein are "forward-looking statements"
within the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"anticipate", "believe", "expect", "estimate", "plan", "outlook",
and "project" and other similar expressions that predict or
indicate future events or trends or that are not statements of
historical matters. Such forward-looking statements include timing
of the proposed transaction; the business plans, objectives,
expectations and intentions of the parties once the transaction is
complete, and ITP's estimated and future results of operations,
business strategies, competitive position, industry environment and
potential growth opportunities. These forward-looking statements
reflect the current analysis of existing information and are
subject to various risks and uncertainties. As a result, caution
must be exercised in relying on forward-looking statements. Due to
known and unknown risks, our actual results may differ materially
from our expectations or projections. All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these factors.
Other than as required under the securities laws, the Company does
not assume a duty to update these forward-looking statements.
The following factors, among others, could cause actual results
to differ materially from those described in these forward-looking
statements: there is uncertainty about the spread of the COVID-19
virus and the impact it will have on ITP's operations, the demand
for the ITP's products and services, global supply chains and
economic activity in general. These and other risks and
uncertainties are detailed in the other public filings with the
Securities and Exchange Commission (the "SEC") by ITP.
Additional information concerning these and other factors that
may impact our expectations and projections will be found in our
periodic filings with the SEC, including our Annual Report on Form
10-K for the fiscal year ended December 31, 2019. ITP's SEC
filings are available publicly on the SEC's website
at www.sec.gov. ITP disclaims any obligation to update the
forward-looking statements, whether as a result of new information,
future events or otherwise.
For more information, please contact:
At the Company Email:
Tel: +86 0312 8698215
EverGreen Consulting Inc.
SOURCE IT Tech Packaging, Inc.