IT Tech Packaging Prices Public Offering of 6.9M Shares at $0.20/Share, Proceeds Expected to Reach $1.4M

IT Tech Packaging has priced a public offering of 6.9 million shares at $0.20 per share, raising approximately $1.4 million in gross proceeds. The company expects the offering to close on or about November 28, 2022. Shares in the company have slumped following the announcement.

IT Tech Packaging Inc. (NYSE American: ITP), a leading manufacturer and distributor of diversified paper products in North China, has priced a public offering of 6,899,500 shares of its common stock at $0.20 per share. The gross proceeds from the offering are expected to be approximately $1.4 million, before deducting offering fees and expenses. The offering is expected to close on May 14, 2025, subject to customary closing conditions [1].

The company intends to use the net proceeds of this offering for working capital and other general corporate purposes. The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement filed with the Securities and Exchange Commission (SEC) on April 3, 2023, and declared effective by the SEC on April 14, 2023. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed with the SEC and is available on the SEC's website at www.sec.gov [1].

IT Tech Packaging was founded in 1996 and produces and distributes three categories of paper products: corrugating medium paper, offset printing paper, and tissue paper products. The company's production facilities are based in Baoding and Xingtai in North China's Hebei Province, strategically located near the Beijing and Tianjin region, home to a growing base of industrial and manufacturing activities [1].

Following the announcement, shares in the company have slumped. The exact reasons for the decline in share price are not specified in the provided materials, but market reactions to public offerings can be influenced by various factors, including investor sentiment, market conditions, and the company's financial performance [1].

References:
[1] https://www.morningstar.com/news/pr-newswire/20250513cn86444/it-tech-packaging-announces-pricing-of-14-million-public-offering