BAODING, China, June 27 2019 /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,
today announced that Hebei Baoding Dongfang Paper Milling Company
Limited ("Dongfang Paper"), the major operating entity of the
Company, has entered into an acquisition Agreement (the
"Agreement") with Hebei Tengsheng Paper Co. Ltd. ("Tengsheng
Paper"), pursuant to which Dongfang Paper shall acquire 100% equity
interests in Tengsheng Paper and all right, title and interest in
and to all assets owned by Tengsheng Paper (the "Purchased Equity
and Assets"). Tengsheng Paper is leasing its land of
approximately 50 acres to the Company with a lease term of 15 years
that expires in November 2027. After
the completion of the acquisition, the PM8 production line will be
transferred to Tengsheng Paper which as a wholly-owned subsidiary
of Dongfang Paper, will focus on manufacturing and distribution of
tissue paper in the future.
Pursuant to the Agreement entered into on June 25, 2019, in consideration for the Purchased
Equity and Assets, Dongfang Paper will pay to Tengsheng Paper a
total purchase price of RMB320
million (approximately $47
million) (the "Purchase Price") within six months of the
execution of the Agreement. Further, Dongfang Paper will
entrust the existing management of Tengsheng Paper to continue
operating the business of Tengsheng Paper and the existing legal
representative of Tengsheng Paper will continue acting as the legal
representative of Tengsheng. Dongfang Paper will entrust the
prior shareholders of Tengsheng Paper to represent it to hold and
exercise all shareholder' rights to which it is entitled as the
shareholder of Tengsheng Paper.
Mr. Zhenyong Liu, Chairman and
Chief Executive Officer of IT Tech Packaging commented, "We have
had a solid business partnership with Tengsheng Paper since 2012.
With land use rights of 761.05 mu, we believe that Tengsheng Paper
will offer us ample site and space for our tissue paper production
lines. The acquisition of Tengsheng Paper shows our confidence in
prospect of the Chinese tissue paper market and we also believe it
paves the way for us to further penetrate into the tissue paper
market."
About IT Tech Packaging, Inc.
Founded in 1996, IT Tech Packaging, Inc. ("ITP") 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 MKT since December 2009.
Safe Harbor
Statements
This press release may contain forward-looking statements.
These forward-looking statements involve inherent risks and
uncertainties that could cause actual results to differ materially
from those projected or anticipated, including risks outlined in
the Company's public filings with the Securities and Exchange
Commission, including the Company's latest annual report on Form
10-K. All information provided in this press release speaks as of
the date hereof. Except as otherwise required by law, the Company
undertakes no obligation to update or revise its forward-looking
statements.
For more information, please
contact:
At the Company
Email: ir@itpackaging.cn
Investor Relations:
Tony Tian, CFA
Email: ttian@weitianco.com
Phone: +1-732-910-9692
View original
content:http://www.prnewswire.com/news-releases/major-operating-entity-of-it-tech-packaging-inc-enters-into-definitive-agreement-to-acquire-hebei-tengsheng-paper-co-ltd-300876460.html
SOURCE IT Tech Packaging, Inc.