IT Tech Packaging (NYSE MKT: ITP) changed 0.71% to recent value of $0.7. The stock transacted 644493 shares during most recent day however it has an average volume of 13.57K shares. It spotted trading -45.77% off 52-week high price. On the other end, the stock has been noted 19.49% away from the low price over the last 52-weeks.
On June 27, 2019, IT Tech Packaging (NYSE MKT: ITP) a leading manufacturer and distributor of diversified paper products in North China, 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
Founded in 1996, IT Tech Packaging (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. ITP has a gross margin of 6.20% and an operating margin of -9.60% while its profit margin remained -9.00% for the last 12 months. Its earnings per share (EPS) expected to touch remained -701.40% for this year while earning per share for the next 5-years is expected to reach at 20.00%.
The company has 22.07M of outstanding shares and 16.37M shares were floated in the market. According to the most recent quarter its current ratio was 0.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of -18.68% from the mean of 20 days, -30.63% from mean of 50 days SMA and performed -16.42% from mean of 200 days price. Company’s performance for the week was -14.96%, -27.68% for month and YTD performance remained 11.46%.
Luke Byrne– Category – Financial
Luke Byrne holds degree is in Economics and have worked in accounting, finance, and database management. His most recent full-time position was with a non-profit, handling all in-house bookkeeping as well as the Membership Program and the member database. His current work is providing web content as well as proofreading and editing services. He possesses over 10 years of investment experience, and he is also certified in Risk Management Assurance. Luke is a self-taught investor and follows the value investing approach to picking stocks. He currently covers Financial News category for our site.
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Phone Number: 780-484-9266